Trade Spotlight: How should you trade BSE, Mankind Pharma, Bajaj Finserv, Bharti Airtel, Zydus Lifesciences, and others on October 27?

Larsen and Toubro | CMP: Rs 3,680 Larsen & Toubro (L&T) is showing signs of base formation near the crucial Rs 3,600 level, which is emerging as a strong support zone. This level coincides with the monthly Camarilla support and a previous demand zone where buying interest had emerged earlier. The confluence of these technical factors strengthens the possibility of a recovery from current levels. The Relative Strength Index (RSI) is holding just above the oversold zone, indicating that selling pressure may be easing.

If the stock sustains above Rs 3,600, a rebound towards Rs 3,900 cannot be ruled out. However, a decisive breakdown below this support could weaken the technical structure. Given the favourable risk-reward setup near the support zone, traders may consider buying L&T with a stop-loss at Rs 3,550. Birlasoft | CMP: Rs 306.6 Birlasoft is showing signs of a potential bullish reversal, supported by the formation of a bullish divergence on the daily chart.

This divergence indicates that the underlying selling pressure may be weakening, increasing the possibility of a recovery. Following the divergence, the stock closed above its 10-day and 20-day Exponential Moving Averages (EMAs), accompanied by a significant surge in trading volumes. This combination suggests improving buying interest and strengthening bullish momentum. Moreover, the 10-day and 20-day EMAs are now acting as support, indicating a possible role reversal in which previously challenging moving averages begin to support the price.

Based on this technical setup, traders may consider buying Birlasoft in the Rs 300–310 range, with a stop-loss at Rs 270 on a closing basis. BSE is displaying a hidden bullish divergence on the weekly chart, indicating the potential continuation of its prevailing uptrend. This pattern typically develops during an established uptrend when the price forms a higher low while the RSI registers a lower low.

The RSI, near the 40 level, further supports the bullish interpretation, as this zone often acts as a cushion during healthy uptrends. Additionally, the 50-week EMA aligns with the major breakout zone, creating a confluence of technical support levels and strengthening the overall setup. Traders may consider entering long positions in the Rs 3,300–3,400 zone, with a target of Rs 4,000. Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities

Mankind Pharma Futures | CMP: Rs 2,342 Mankind Pharma has once again found support near the lower end of the range within which it has been consolidating for the past three to four months. The stock has been trading in the Rs 2,200–2,500 range. Having reversed from the lower end of this range, it is now expected to move towards the upper end. The stock has also witnessed an overall long build-up, while its positive price reaction following the results indicates underlying strength.

Hence, dips may be considered buying opportunities. According to options data, the Rs 2,300 strike has the highest Call base, and the November futures contract has closed well above this level. This could lead to further upside if Call unwinding gathers pace. The maximum pain level stands at Rs 2,280, which is expected to act as immediate support. Traders may consider buying Mankind November futures in the Rs 2,320–2,340 range, with a stop-loss below Rs 2,260.

Target: Rs 2,420, Rs 2,460 Bajaj Finserv Futures | CMP: Rs 1,669.50 Bajaj Finserv has deviated three standard deviations (3 sigma) from its 20-day mean and has witnessed significant selling pressure, pushing the stock into oversold territory ahead of the monthly derivatives expiry. A rebound in the November series, driven by short covering, is expected, as the risk-reward ratio appears more favourable for long positions at current levels.

According to options data, the Rs 1,740 strike has the highest Call base. Therefore, a rebound towards this level cannot be ruled out, making it the first target. Traders may consider buying Bajaj Finserv November futures in the Rs 1,660–1,680 range, with a stop-loss below Rs 1,630. Target: Rs 1,740, Rs 1,780 FSN E-Commerce Ventures Nykaa Futures | CMP: Rs 331.95 Nykaa has been consolidating in the Rs 315–350 range, and this is the third time the stock has reversed from the lower end of the range.

It has outperformed the broader market during the recent decline, while buying interest ahead of the festive season has provided additional support. According to options data, significant Put additions have been observed at lower strikes ranging from Rs 300 to Rs 325, indicating a potential support zone. Meanwhile, the Rs 340 strike has the highest Call base, and a sustained move above this level could open the door to further upside.

The stock has also managed to close above the maximum pain level of Rs 325. Traders may consider buying Nykaa November futures in the Rs 325–335 range, with a stop-loss below Rs 315. Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan Astral Futures | CMP: Rs 1,358.90 Astral witnessed a sharp decline between August and September. In October, the stock retraced 50 percent of its previous decline before resuming its downward move.

The daily momentum indicator has recently given a bearish crossover, indicating that the next leg of the decline may have begun. The stock is trading below key daily moving averages and is expected to drift lower towards Rs 1,300–1,265 in the coming trading sessions. Traders may consider selling Astral November futures at the current market price (CMP), with a stop-loss at Rs 1,422 on a closing basis.

Target: Rs 1,300, Rs 1,265 UPL is consistently facing selling pressure around its 40-day Exponential Moving Average (40-DEMA) and continues to form lower highs and lower lows. Recently, a sharp rally in the stock lost momentum around the 40-DEMA, followed by a meaningful correction. The stock is now trading below key daily moving averages. Additionally, the daily momentum indicator gave a bearish crossover during Monday's trading session.

Given the prevailing downtrend, the stock is expected to form another lower low and could decline towards Rs 475–462 in the coming trading sessions. Traders may consider selling UPL November futures at the current market price (CMP), with a stop-loss at Rs 521 on a closing basis. Target: Rs 475, Rs 462 Vidnyan Sawant, Head of Research at GEPL Capital Bharti Airtel | CMP: Rs 1,917.5 Bharti Airtel is showing signs of a potential recovery after finding strong support in the Rs 1,750–1,800 zone, near its 100-week Exponential Moving Average (EMA).

The weekly RSI is improving towards 51, while the MACD is trending upwards, indicating strengthening momentum. Additionally, the formation of a positive Change in Polarity (CIP) pattern near Rs 1,750 suggests an improving technical outlook. Zydus Lifesciences | CMP: Rs 1,160.4 Zydus Lifesciences is maintaining a positive technical structure on the weekly chart, trading above its 5-week, 13-week and 50-week EMAs, indicating a sustained bullish trend.

The stock is consolidating near its recent highs, suggesting the potential for further upside. The weekly RSI is around 58, reflecting positive momentum, while the MACD remains in positive territory.