7 Technical Trading Ideas Traders Can Launch During November F&O Expiration Week

The Nifty50 ended 2 weeks of a winning streak and closed about 2% lower in a shortened holiday week weighed down by weakness in global indices. The index closed below its crucial support at 17,800 levels.

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Participants have become cautious of rising US inflation, which could trigger a faster-than-expected cut and rate hikes, experts suggest. Larger markets also saw selling pressure in which mid and small caps lost around 1-2%.

On the downside 17650-17700 will act as crucial support while on the upside 18000-18200 will act as crucial resistance level.

Technically, the index gave a breakdown of the uptrend line and gave a close below 50-DMA, suggesting weakness for future trading sessions.

"Over the past four trading sessions, the index has traded with lower highs and lows, indicating some corrections for the next trading session," said Palak Kothari, research associate at Choice Broking.

"However, the index took support from the lower Bollinger band, a breach below may show further decline. Additionally, the index closed below 21 DMA and the stochastic indicator and MACD is trading in negative crossover, which indicates a weakness in the counter for the next trading sessions, "he said.

Kothari added that currently the index has a support level of 17650 while resistance is at 18,000 levels.

We have put together a list of 7 trading ideas from experts with a short to medium term investment horizon:

Expert: Kavita Jain, Head of Learning and Senior Equity Research Analyst at Arihant Capital Electricity network: Buy | LTP: Rs 192 | Target 204-209 | Stop Loss: Rs 187 | Upside 9% | Time 1-2 weeks

PowerGrid is forming a "Bullish Engulfing," which is a bullish reversal candlestick formation on the weekly chart that illustrates the climactic victory for buyers over the past week following the four week correction from 210 to 180.

A candlestick formation also coincides with the support of the ascending trendline. A leading indicator is at 58.32, showing new price power to move higher.

Asian Paintings: To Buy | LTP: Rs 3226 | Target Rs 3353-3470 | Stop Loss Rs 3099 | 7.5% increase | Time 1-2 weeks

The counter is witnessing a breakout of the falling wedge price pattern formation on the duly established daily period on the weekly chart as well.

The configuration's price projection suggests a target of 3470 in a week or two. A leading indicator stands at 56.79 which shows that the price power is even higher.

Brokerage: SMC Global Securities Ltd Pidilite Industries Ltd: To buy | LTP: Rs 2437 | Target Rs 2550-2580 | Stop Loss: Rs 2460 | 6% increase | 3-4 weeks

The stock hit a 52-week low at Rs 1,500.60 on November 27, 2020 and a 52-week high of Rs 2,532 on October 19, 2021.

The 200-day exponential moving average (DEMA) of the stock on the daily chart is currently at Rs 2,130.60.

Short, medium and long term biases look positive for the stock as it trades in higher highs and lows on the charts. Other than that, it consolidated in a narrow range and formed a "bullish pennant" pattern on the weekly charts, which is bullish in nature.

Last week the stock attempted to break the trend, was unable to maintain highs due to market volatility but still managed to close positive with a positive bias.

Therefore, one can buy in the range of 2410-2425 levels for the bullish target of 2550-2580 levels with a stop loss below 2460 levels.

SBI Life Insurance Company Ltd: Buy | LTP Rs 1181 | Objective Rs 1320-1350 | Stop Loss: Rs 1100 | On the rise 14% | Time 3-4 weeks

The stock hit a 52-week low of Rs 825.20 on December 22, 2020 and a 52-week high of Rs. 1273.90 on October 06, 2021.

The 200-day exponential moving average (DEMA) of the stock on the daily chart is currently at Rs 1064.02.

The stock consolidates within a narrow range and forms a "bullish flag" pattern on the weekly chart which is bullish.

Despite the correction of the broader indices, the stock showed some strength, held up and consolidated in a narrow range with a positive bias and high volumes.

On the technical indicators front, the RSI and MACD also suggest buying the stock. Therefore, one can buy in the range of 1160-1170 levels for the bullish target of 1320-1350 levels with a stop loss below the 1100 levels.

Expert: Bharat Gala, President - Technical Research, Ventura Securities Ltd. Birlasoft: Buy | LTP: Rs 468 | Target Rs 600-800 | Stop Loss: Rs 380 | On the rise 70% | Time 6-9 months

The Birla Soft share price rose from Rs 47.60 in March 2020 to Rs 458 in September 2021. It traded consistently above averages and the super trend was positive.

From June 21 to November 21, the stock had traded in a narrow range and recently it had weekly candle breaks and hit a high of 501.55 accompanied by supporting volumes.

Now the Demand Index, Vortex, and ROC indicators suggest a possible bullish move. Possible targets are 600-800.

If the stock price corrects lower, the buy levels are (464) -453- (441-435). The Stop Loss to be observed in this trade is 380.

Maruti Suzuki: To buy | LTP RS 8112 | Objective Rs 10,000-14,000 | Stop Loss: Rs 6740 | Upside 23% | Time 6-9 months

Maruti Suzuki fell from 906 in December 2011 to 10,000 in December 2017. Then came a technical correction, due to profit recognition, and the stock hit a low of 4002 in April 2020.

Since then, buying value has pushed the stock to a high of 8400 in January 2021. Recently it has demonstrated a trend and a trend (July 2018 to November 2021) and reached a high of 8370, accompanied by volumes Support.

The MACD, the demand index and the ADX indicator suggest a possible bullish move. Possible targets are 10000-12000-14000.

If the stock price corrects lower, the buy levels are (7950-7690) -7485- (7275-7155). The Stop Loss to be observed in trading is 6740.

TD Power Systems Ltd: Buy | LTP Rs 404 | Objective Rs 650 | Stop Loss Rs 290 | 60% increase

The TD Power Systems share price rose from 145 in April 2021 to 365 in September 2021. It has continuously taken support from averages, and the supertrend has been in positive mode since September 2020.

Subsequently, the stock traded in a narrow weekly range, hitting a new high of 382 in October 2021.

Recently, the stock has seen lineup breaks and hit a high of 413.95, accompanied by supporting volumes.

Demand Index, Vortex Indicator and MACD suggest a possible bullish move. The possible target is 650.

If the stock price corrects lower, the buy levels are (378-355) -339- (321-310). The Stop Loss to be observed in trading is 290.

(Disclaimer: The views / suggestions / advice expressed here in this article are solely by investment experts. Zee Business suggests that its readers consult their investment advisers before making a financial decision.)