Trade Spotlight: How should you trade Vijaya Diagnostic Centre, IDFC First Bank, Radico Khaitan, MCX…

Fresh updates from the financial markets indicate that Equity benchmarks bounced back on September 23, with the Nifty 50 rising half a percent amid positive market breadth. Around 2,149 shares advanced, compared with 1,092 declining shares on the NSE. That stated, a weak broader technical structure and surging US bond yields signal caution, with range-bound trading likely in the near term. Here are some short-term trading ideas to consider:

Vaishali Patel, Deputy Manager – Research-Technical Department at Jainam Broking

Vijaya Diagnostic Centre | CMP: Rs 1,570.7

Vijaya Diagnostic Centre is witnessing firm buying interest as the stock has broken out above the crucial Rs 1,550 resistance zone, marking a fresh all-time high. The stock keeps maintain a firm elevated high-elevated low structure and is trading comfortably above its key moving averages, reflecting a robust uptrend.

The breakout follows a healthy consolidation phase, indicating renewed accumulation at elevated marks. Momentum stays supportive, with the RSI holding above 60, signalling strengthening bullish momentum. The breakout is further supported by improving volumes, adding conviction to the ongoing move. Target: Rs 1,630 Stop-Loss: Rs 1,529

Somany Ceramics | CMP: Rs 596.3

Somany Ceramics has registered a decisive breakout above the Rs 575 resistance zone, confirming the continuation of its medium-term uptrend. The stock has been forming a well-defined elevated high-elevated low structure and keeps trade above its 20-day, 50-day, and 100-day moving averages, reflecting sustained underlying resilience.

The breakout follows a prolonged consolidation phase, indicating fresh accumulation and renewed buying interest at elevated marks. Additionally, the breakout has been accompanied by an uptick in trading volumes, lending credibility to the move. Target: Rs 630 Stop-Loss: Rs 581

IDFC First Bank | CMP: Rs 87.90

IDFC First Bank has broken out above the key Rs 86-87 resistance zone, indicating a continuation of its medium-term uptrend after a prolonged consolidation phase. The stock is trading above its key moving averages on the daily chart, highlighting firm underlying resilience.

Notably, the gap backing zone near Rs 82-83, highlighted in the chart, coincides with the recent breakout base and is likely to act as a firm demand area during any corrective slide.

The stock has repeatedly found backing around this zone, reinforcing its technical significance. The breakout is backed by improved volumes, reflecting renewed investor participation. Target: Rs 96 Stop-Loss: Rs 84.80

Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities

Radico Khaitan | CMP: Rs 4,601.9

Radico Khaitan has given a downward-sloping trendline breakout on the daily chart, signalling a potential shift in momentum. The RSI has additionally broken above its downward-sloping trendline and moved elevated, indicating renewed bullish momentum. The DI+ has crossed above DI- in the ADX indicator, highlighting increasing resilience among the bulls.

Further, the shrinking MACD histogram bars, coupled with the MACD line being on the verge of crossing above the signal line, reinforces the positive setup. Sustained momentum above the breakout zone could pave the way for further upside, with the overall bullish bias likely to stay intact as long as the stock holds above the breakout zone.

Hence, accumulation is recommended in the Rs 4,565-4,615 zone, with a stop-loss at Rs 4,430. On the upside, the stock is likely to test Rs 4,935 in the short term. Target: Rs 4,935 Stop-Loss: Rs 4,430

Phoenix Mills | CMP: Rs 1,993.2

Phoenix Mills had been consolidating in the Rs 1,865-1,971 range before briefly breaking down on September 15 and moving towards its 200-day EMA. The stock, that stated, witnessed a sharp rebound of a little over 9.5 percent over the last six sessions from its 200-day EMA and has now closed above the upper end of the consolidation range.

The RSI has surged from 34 to 63 during this period, reflecting firm bullish momentum. The stock has additionally closed above the upper Bollinger Band, a move often associated with the early stages of firm trends.

In the meantime, the MACD has crossed above the signal line, accompanied by rising green histogram bars, further reinforcing the bullish bias. Hence, accumulation is recommended in the Rs 1,975-1,995 zone, with a stop-loss at Rs 1,915. On the upside, the stock is likely to test Rs 2,135 in the short term. Target: Rs 2,135 Stop-Loss: Rs 1,915

Multi Commodity Exchange of India | CMP: Rs 3,374

MCX has witnessed a sharp pullback of around 10 percent from its 50-day EMA over the last five trading sessions. The stock has been consolidating in the Rs 3,057-3,400 range since late August. That stated, the RSI has started to move elevated, indicating a buildup of bullish momentum.

Additionally, the DI+ has crossed above DI- in the ADX indicator, suggesting that the bulls are gaining a firmer grip over the bears. The alignment of price action and technical indicators points towards improving momentum, indicating that the stock could be poised for a breakout from its consolidation range and potentially move elevated in the near term.

Hence, accumulation is recommended in the Rs 3,350-3,380 zone, with a stop-loss at Rs 3,240. On the upside, the stock is likely to test Rs 3,615 in the short term. Target: Rs 3,615 Stop-Loss: Rs 3,240

Vatsal Bhuva, Technical Market observer at LKP Securities

Tamilnad Mercantile Bank | CMP: Rs 921.4

Tamilnad Mercantile Bank keeps maintain a positive chart structure, with a clear formation of elevated highs and elevated lows, indicating an ongoing uptrend. A hidden bullish divergence provides further positive confirmation and suggests that the recent correction could be followed by a continuation of the broader uptrend.

The stock advanced in Wednesday’s session and reclaimed its 20-DMA on the daily chart. The stock can be considered for buying around Rs 920, with a stop-loss at Rs 885 and a target of Rs 975. Target: Rs 975 Stop-Loss: Rs 885 RBL Bank | CMP: Rs 428

RBL Bank has reaffirmed its bullish momentum after taking firm backing near its prior breakout zone, accompanied by firm volume-based buying. It keeps sustain comfortably above its rising 20-day moving average (20-DMA), reflecting underlying resilience.

Wednesday’s breakout confirms the continuation of the prevailing uptrend, further supported by a bullish crossover on the Relative Resilience Index (RSI). Given the favourable technical structure, the stock presents an attractive long setup, with a stop-loss at Rs 406 and a target of Rs 460. Target: Rs 460 Stop-Loss: Rs 406 Eternal | CMP: Rs 342.65

Eternal has registered a decisive breakout from a consolidation pattern on the daily chart, confirming the resumption of its broader uptrend. This positive momentum is reinforced by a hidden bullish divergence on the RSI, alongside an active bullish crossover, signalling underlying trend resilience.

Furthermore, price action sustaining comfortably above the 20-DMA underscores sustained buying interest and robust market sentiment. Given this favourable technical alignment, the stock offers an attractive long opportunity, with a stop-loss at Rs 324 and an upside target of Rs 365. Target: Rs 365