Trade Spotlight: How should you trade Granules India, Federal Bank, Zydus Lifesciences, Firstsource Solutions, and others on October 23? — Bizwire | Bizwire
Trade Spotlight: How should you trade Granules India, Federal Bank, Zydus Lifesciences, Firstsource Solutions, and others on October 23?
Markets are likely to remain range-bound in the near term, warranting a cautious approach. Here are some short-term trading ideas to consider.
The benchmark indices remained under pressure, with the Nifty 50 falling more than half a percent amid weak market breadth. On the NSE, 2,347 stocks declined, compared with 891 that advanced. Markets are likely to remain range-bound in the near term, warranting a cautious approach. Here are some short-term trading ideas to consider: Om Mehra, Technical Research Analyst at Samco Securities Granules India | CMP: Rs 817
Granules India has been consolidating near the Rs 800–820 support zone following a correction from its recent highs. The stock has formed a double-bottom pattern on the daily chart, indicating the potential for a reversal from this support zone. Over the past two sessions, it has closed steadily near this base, suggesting gradual accumulation at lower levels. The RSI is around 45, with positive divergence visible on the daily chart.
Trading volumes remain neutral, although a sustained move above Rs 825 could trigger further upside. Hence, traders may consider initiating long positions at the current market price (CMP) of Rs 817. Federal Bank | CMP: Rs 347.80 Federal Bank has broken above the Rs 340–345 resistance zone, which had capped its gains on multiple occasions. Recent sessions have also seen a strong sequence of higher closes, indicating improving price momentum.
The stock has reclaimed its 20-day simple moving average (SMA) and is trading comfortably above it, signalling a recovery following the recent correction. The sharp rebound from the October lows has been accompanied by rising volumes, suggesting increased participation in the rally. The RSI has climbed from around 40 to 62 in a short span, indicating a significant improvement in momentum. Hence, traders may consider initiating long positions at the CMP of Rs 347.80.
Zydus Lifesciences | CMP: Rs 1,135 Zydus Lifesciences has been building a strong base near Rs 1,100, a level that has held on multiple occasions. The stock has recovered from this base and is now trading above the volume-weighted average price (VWAP) of Rs 1,122, indicating improving near-term strength. The RSI is around 49 and gradually improving, suggesting a recovery in momentum. The pharmaceutical sector has also rebounded following a minor correction, providing additional support to the stock.
Hence, traders may consider initiating long positions at the CMP of Rs 1,135. Hitesh Tailor, Technical Research Analyst at Choice Broking Firstsource Solutions | CMP: Rs 289.4 Firstsource Solutions (FSL) is demonstrating strong technical momentum on the weekly chart after consolidating near its key 200-week exponential moving average (EMA) and staging a decisive bullish rebound. The longer-term uptrend remains intact, with the stock respecting a rising support trendline at lower levels.
Strong buying interest is evident as the stock rebounds from a major moving-average support zone. Expanding volumes during upward price movements suggest increased buying participation, while the weekly RSI reinforces the positive momentum by moving above its midpoint to 55.74. Given the strong technical setup and signs of accumulation at lower levels, FSL presents a potential buying opportunity in the cash segment around Rs 289.
Traders should maintain a strict stop-loss at Rs 272 to limit downside risk, with a target price of Rs 320. Emcure Pharmaceuticals | CMP: Rs 1,782.6 Emcure Pharmaceuticals is showing signs of a potential bullish recovery, with the stock closing around Rs 1,783 after forming a bullish green candle on the daily chart. The stock has retraced towards its 200-day EMA, which is acting as a crucial support zone and could provide a base for a rebound.
The daily RSI stands at 34.48, indicating weak momentum while suggesting that the stock is approaching oversold territory. Buying interest could emerge if the support zone holds. A sustained recovery from the 200-day EMA support zone could help the stock move towards the target area of Rs 1,950. Traders may consider buying Emcure Pharmaceuticals in the cash segment at Rs 1,783, with a strict stop-loss at Rs 1,690 to manage downside risk.
