Trade Spotlight: How to Trade Shriram Finance, MOIL, SRF, Jindal Steel, NTPC, Indraprastha Gas & More on February 21
Trade Spotlight : The stock market saw some consolidation on February 20, closing slightly lower, but the formation of a bullish candlestick on the daily chart hints at a possible upward continuation. Market breadth remained positive, with 1,883 stocks advancing against 710 declining on the NSE, reflecting strong buying interest in the broader market.
With bulls looking to gain further strength, certain stocks have emerged as strong trading candidates for the near term. Here’s a closer look at stocks like Shriram Finance, MOIL, SRF, Jindal Steel, NTPC, Indraprastha Gas, and more, along with key financial insights.
Stock Trading Strategies & Technical Analysis
1. Paras Defence and Space Technologies (CMP: ₹901.4)
- Technical Setup: The stock has given a strong breakout on the weekly chart, signaling bullish momentum. A bullish engulfing pattern on the daily chart and a Hammer formation on the weekly chart confirm buying interest.
- Key Indicators: RSI is at 39.67 and trending upwards, and the Stochastic RSI has given a positive crossover.
- Strategy: Buy
- Target: ₹1,050, ₹1,060
- Stop-Loss: ₹830
2. Mahindra & Mahindra (CMP: ₹2,839.5)
- Technical Setup: M&M has reversed strongly from a demand zone, forming a bullish candle. Volume activity suggests increased buying at lower levels.
- Key Indicators: RSI at 40.40 is trending upwards, and the Stochastic RSI has confirmed a positive crossover.
- Strategy: Buy
- Target: ₹3,130, ₹3,190
- Stop-Loss: ₹2,690
3. MOIL (CMP: ₹325.8)
- Technical Setup: MOIL is approaching a potential breakout from a double-bottom pattern, indicating accumulation by buyers.
- Key Indicators: RSI at 54.68 signals increasing bullish momentum, and the Stochastic RSI shows a positive crossover.
- Strategy: Buy
- Target: ₹370, ₹378
- Stop-Loss: ₹305
4. Shriram Finance (CMP: ₹580.85)
- Technical Setup: The stock has broken out from a falling trendline with above-average traded volumes. It is now trading above the 100 DEMA, which is a bullish signal.
- Key Indicators: MACD is rising, supporting bullish momentum.
- Strategy: Buy
- Target: ₹615
- Stop-Loss: ₹560
5. SRF (CMP: ₹2,795.9)
- Technical Setup: SRF has formed a bullish engulfing pattern near its previous breakout levels, confirming positive sentiment.
- Key Indicators: Stochastic RSI has exited oversold territory, signaling a fresh upward movement.
- Strategy: Buy
- Target: ₹2,970
- Stop-Loss: ₹2,710
6. Jindal Steel & Power (CMP: ₹879.3)
- Technical Setup: The stock has reversed from major support levels with strong buying volumes.
- Key Indicators: RSI has turned upwards, confirming a bullish trend reversal.
- Strategy: Buy
- Target: ₹930
- Stop-Loss: ₹850
7. NTPC (CMP: ₹325.15)
- Technical Setup: NTPC has closed above the 21-EMA after a prolonged period, signaling a shift in sentiment.
- Key Indicators: RSI has broken resistance, adding confidence to the bullish move.
- Strategy: Buy
- Target: ₹340, ₹360
- Stop-Loss: ₹290
8. Anand Rathi Wealth (CMP: ₹3,861.75)
- Technical Setup: The stock has given a breakout above the falling trendline and closed above the 21-EMA, showing strong momentum.
- Key Indicators: RSI has broken its resistance, supporting the positive outlook.
- Strategy: Buy
- Target: ₹4,250, ₹4,450
- Stop-Loss: ₹3,490
9. Indraprastha Gas (CMP: ₹203.61)
- Technical Setup: IGL has given a breakout from a falling parallel channel and closed above the 21-EMA, indicating a bullish shift.
- Key Indicators: RSI has broken resistance, confirming buying interest.
- Strategy: Buy
- Target: ₹222, ₹235
- Stop-Loss: ₹190
Key Financial Ratios of Selected Stocks
| Stock Name | P/E Ratio | P/B Ratio | ROE (%) | Market Cap (₹ Cr) |
|---|---|---|---|---|
| Paras Defence | 52.3 | 7.2 | 14.5 | 3,460 |
| Mahindra & Mahindra | 19.8 | 3.4 | 17.2 | 3,54,210 |
| MOIL | 11.2 | 1.5 | 12.6 | 6,710 |
| Shriram Finance | 12.6 | 2.2 | 15.8 | 75,830 |
| SRF | 29.4 | 5.1 | 18.7 | 85,260 |
| Jindal Steel | 9.5 | 1.9 | 20.2 | 91,430 |
| NTPC | 13.6 | 1.8 | 14.3 | 3,16,540 |
| Anand Rathi Wealth | 25.7 | 6.3 | 23.4 | 10,420 |
| Indraprastha Gas | 14.9 | 3.1 | 16.1 | 14,870 |
Market Outlook & Conclusion
The overall market sentiment remains positive, with broader indices showing strength despite minor consolidations. The bullish candlestick pattern formed on February 20 suggests the potential for an upward move, provided the buying momentum sustains.
The stocks discussed above exhibit strong technical setups and financial stability, making them potential candidates for short-term gains. However, traders should maintain disciplined risk management and adhere to the suggested stop-loss levels.
Keep an eye on key support and resistance levels, and follow market trends closely to make informed trading decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.