Hot Stocks: City Union, MCX and Amara Raja Batteries top buy ideas for short term

Indicator reading near 60 levels as well as prices trading above its 21-Day EMA, all this positive technical setup indicates that Nifty will touch 15,600 levels very soon.

MARCH 04, 2021 / 08:23 AM IST

The Nifty50, after forming a bullish Harami candlestick pattern on the daily chart, has witnessed a strong rally for the two consecutive days.

Benchmark index on March 3 witnessed a smaller degree consolidation range breakout above 15,100 levels on the daily time frame.

The prices have neglected its short-term negative set up by closing above the resistance zone which forced the index to close above its 21-Day exponential moving average (EMA) on the daily time frame.

Momentum oscillator RSI (14) is reading near 60 levels in a higher low formation on the daily interval which suggests positive crossover is on the cards.

INDIA VIX on March 3 slipped more than 6 percent and closed below 23 levels. Recently, the VIX index witnessed a breakout above 25 levels but couldn’t hold on to it and created a whipsaw and drift below the 25 levels on the daily chart.

Indicator reading near 60 levels as well as prices trading above its 21-Day EMA, all this positive technical setup indicates that Nifty will touch 15,600 levels very soon.

The crucial support for the index is placed at 15,050 levels which are clubbed with trend line support.

Here is a list of top trading ideas for the short term:

City Union Bank: Buy| LTP: Rs. 181.25| Target: Rs 194 |Stop Loss Rs. 173|Upside 7%

Prices have witnessed a ‘Falling Channel’ pattern breakout on the daily time frame and is currently trading above the trend line support.

The stock has found support near 50 percent retracement which is placed at 158 levels from its previous intermediate low on the weekly interval.

Prices are trading above their exponential moving averages (50 & 100) on the weekly chart. Momentum Oscillator RSI (14) is reading above 60 levels with positive crossover, which is positive for the counter.

The MACD indicator is reading above its line of polarity with positive sentiments.

Amara Raja Batteries: Buy| LTP: Rs. 915| Target: Rs 965|Stop Loss: Rs. 885| Upside 5%

Prices have witnessed a smaller degree rectangle pattern breakout on the daily time frame and is currently trading above the trend line support.

Moreover, the counter has formed a bullish AB=CD harmonic pattern and prices are trading above its potential reversal zone (PRZ) on the daily interval.

The stock has found support near 50 percent retracement which is placed at Rs 860 levels from its previous intermediate low on the weekly interval.

Momentum oscillator RSI (14) is reading above 45 levels with bullish crossover and looking to rise higher above 60 levels.

MCX: Buy| LTP: Rs. 1541| Target: Rs 1680|Stop Loss: Rs. 1464| Upside 9%

MCX on the monthly time frame has likely completed its throwback after its multi-year breakout. Prices have formed a bullish AB-CD harmonic pattern on the weekly chart and is currently trading above their potential reversal zone (PRZ).

The counter is trading above its 50 & 100-day exponential moving averages on weekly as well as monthly time frame, which is positive for the prices in the near term.

Momentum oscillator RSI (14) on the weekly chart has formed bullish divergence near 40 levels and the oscillator is reading above its horizontal trend line support.

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