Trade Spotlight: How should you trade Chennai Petroleum, Sansera Engineering, Zydus Lifesciences, Indian Hotels, Glenmark Pharma, and others on October 28?

Equity benchmarks ended marginally lower with a negative bias after a range-bound session on October 27. However, market breadth remained positive, with 2,305 shares advancing against 950 declining shares on the NSE. The market is likely to remain in consolidation mode, with range-bound trading expected until the broader technical structure improves. Here are some short-term trading ideas to consider:

Ashish Kyal, Founder / CEO of Waves Strategy Advisors Chennai Petroleum Corporation | CMP: Rs 1,573.8 Chennai Petroleum Corporation has been moving higher along an upward-sloping trendline. Recently, the stock found support near Rs 1,380, coinciding with the 38.2 percent Fibonacci retracement level, and witnessed a sharp rebound. It subsequently surged more than 15%, signalling strong buying momentum and reaffirming the presence of buyers at lower levels.

Additionally, the MACD indicator has registered a bullish crossover, with green histogram bars forming above the zero line, providing further confirmation of the positive momentum. Going forward, a breakout above Rs 1,582 could push the stock higher towards Rs 1,630–1,640, followed by Rs 1,700, as long as the Rs 1,530 level holds on the downside. Target: Rs 1,640, Rs 1,700 Sansera Engineering | CMP: Rs 4,290.6

Sansera Engineering outperformed the broader market in the previous trading session, rallying more than 3% to close at Rs 4,290.60, near its previous swing high. This price action indicates strong buying momentum in the stock. Recently, the stock found support at its 60-period EMA on October 22 and subsequently rebounded. Since then, it has also managed to hold above its previous session's low on a closing basis, indicating sustained buying interest.

Furthermore, the stock is following a 26-period time cycle and has recently formed a low within the cycle zone, lending further confirmation to the ongoing recovery. Going forward, a decisive move above Rs 4,335 could trigger the next leg of the rally towards Rs 4,530, followed by Rs 4,725. On the downside, Rs 4,140 remains the key support level. Target: Rs 4,530, Rs 4,725 Rajesh Dashrath Bhosale, Fund Manager - Advisory at Renaissance

Bharti Airtel | CMP: Rs 1,978.8 Even as the broader market remained under pressure throughout October, Bharti Airtel rallied sharply from its October low of Rs 1,727, demonstrating clear relative strength and outperformance. On the daily chart, the stock has broken out of a saucer pattern on strong volumes, accompanied by a bullish candle. Additionally, a bullish crossover of the 20-day exponential moving average (DEMA) above the 50-day DEMA provides further confirmation of the positive outlook.

Zydus Lifesciences | CMP: Rs 1,172.9 Zydus Lifesciences' higher-time-frame technical structure remains positive. The stock recently corrected amid the broader market sell-off but found support near its 89-day exponential moving average (DEMA). It has since resumed its upward move, forming a higher bottom. A bullish range breakout further indicates that the uptrend is regaining momentum. The stock is trading above all key moving averages, while an RSI reading above 60 reinforces the bullish outlook.

Amol Athawale, VP Technical Research at Kotak Neo Indian Hotels Company | CMP: Rs 812.85 On the daily chart, Indian Hotels is trading within a rising channel, characterised by a series of higher highs and higher lows. The stock has also staged a steady recovery from its short-term moving averages. Additionally, the RSI indicates the potential for further upside from current levels, which could strengthen bullish momentum in the near term.

Over the next few trading sessions, Rs 780 could act as a key trend-deciding level for the bulls. If the stock sustains above this level, it could extend its uptrend towards Rs 870. Glenmark Pharma | CMP: Rs 2,265.7 After declining from higher levels, Glenmark Pharmaceuticals rebounded from its support zone and staged a sharp recovery. Additionally, the stock has broken out of a downward-sloping channel on the daily chart.

The recent upward move suggests the potential beginning of a fresh leg of the bullish trend. For positional traders, Rs 2,190 is the key level to watch. Sustained trading above this level would support the bullish reversal setup and could drive the stock towards Rs 2,420. However, if the stock closes below Rs 2,190, traders may consider exiting their long positions. Varun Beverages | CMP: Rs 416 Following a prolonged decline, Varun Beverages reversed from an important support zone.

The stock has formed a rounding-bottom pattern on the daily chart and is now witnessing a steady upward move. Additionally, the RSI indicates the potential for further upside from current levels, which could strengthen bullish momentum in the coming sessions. As long as the stock trades above Rs 398, the bullish trend is likely to remain intact. A sustained move above this level could pave the way for further gains towards Rs 435.