Market Update

March 20, 2024

The Indian equity market rebounded on March 20, with the Nifty 50 rising half a percent after a more than 3 percent correction in the previous session. Market breadth turned positive, with 1,721 shares advancing against 1,258 declining shares on the NSE.

Short-Term Trading Ideas

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Chennai Petroleum Corporation

• CMP: Rs 1,064.75
• Strategy: Buy
• Target: Rs 1,150, Rs 1,230
• Stop-Loss: Rs 1,010

Chennai Petroleum Corporation is trending higher, forming a series of higher tops and higher bottoms on the daily chart. The stock is on the verge of a "multiple resistance breakout" at the Rs 1,090–1,100 levels. Rising volumes and a favorable RSI indicate a strong uptrend.

Coal India

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• CMP: Rs 468.15
• Strategy: Buy
• Target: Rs 490, Rs 515
• Stop-Loss: Rs 445

Coal India is sustaining above the multiple resistance zone of Rs 440 on a closing basis, accompanied by rising volumes. The stock is well placed above its 20-, 50-, 100- and 200-day SMAs, reconfirming bullish sentiment.

Hindalco Industries

• CMP: Rs 874.25
• Strategy: Sell
• Target: Rs 850, Rs 820
• Stop-Loss: Rs 900

Hindalco Industries has witnessed a short-term trend reversal, forming lower tops and lower bottoms. The stock has found support from an upward-sloping trendline at the Rs 909 level on a closing basis. Traders should consider this an exit or selling opportunity.

Bharti Airtel

• CMP: Rs 1,846.1
• Strategy: Buy
• Target: Rs 1,950
• Stop-Loss: Rs 1,796

Bharti Airtel has approached a key support zone and has shown relative strength this week, hinting at a potential resumption of the primary uptrend. Prices are currently positioned around the 89-week EMA, aligning with previous breakout levels.

Aurobindo Pharma

• CMP: Rs 1,291.4
• Strategy: Buy
• Target: Rs 1,400
• Stop-Loss: Rs 1,240

Aurobindo Pharma continues to trade in a higher top–higher bottom formation, with every dip towards the 20-day EMA being consistently bought. The stock has confirmed a breakout from a year-long consolidation and is trading around its breakout zone.