Equity benchmarks rebounded 0.2 percent on September 10 after a three-day correction, but market breadth remained weak. About 2,002 shares declined, compared with 1,238 advancing shares on the NSE. The market is expected to remain under bearish pressure amid rising oil prices and fears of a prolonged Iran war. Here are some short-term trading ideas to consider:
Mahesh M Ojha, Vice President Research & Business Development at Kantilal Chhaganlal Securities
Nazara Technologies is exhibiting a strong bullish price structure, with the stock trading near its recent high after a sustained uptrend. The stock has formed a sequence of higher highs and higher lows, while the sharp rise from the Rs 350–360 zone indicates strong buying momentum. The stock is currently hovering around Rs 374–375, close to the immediate resistance zone of Rs 380. The latest technical data also shows the stock trading above its key short-, medium- and long-term moving averages, supporting the bullish trend.
The RSI at 68.5 indicates strong momentum and is approaching the overbought threshold of 70, but it does not yet signal an extreme reversal condition. The MACD is also in positive territory, while ADX around 32 indicates a reasonably strong underlying trend.
On the price front, Rs 380 is the immediate breakout hurdle. A decisive close above Rs 380, preferably supported by higher volumes, could trigger the next leg of the upmove towards Rs 390–400. On the downside, Rs 365–360 is the first important support zone, followed by stronger support around Rs 350–355. The stock's recent trading history also shows Rs 379–380 as an important supply area. Buy the stock on dip in the Rs 370-375, with a stop-loss below Rs 348.