Trade Spotlight: How should you trade Gujarat Pipavav Port, Sona BLW, Action Construction Equipment, Dr…

The latest market report highlights that The key market indices remained under pressure on September 30, with the Nifty 50 falling 0.4 percent, while market breadth was nearly even. Around 1,629 stocks advanced, compared with 1,619 stocks that declined on the NSE. Bears may stay in control amid the weak technical structure. Here are some short-term trading ideas to consider:

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

Gujarat Pipavav Port | CMP: Rs 166.75

Gujarat Pipavav Port is showing signs of a potential breakout as the stock approaches falling trendline resistance near Rs 167–168, following a firm recovery from its August lows. The stock has been consolidating above the crucial Rs 157–159 demand zone (highlighted area), which coincides with the 100-day moving average and has repeatedly acted as a backing base.

Price action stays positive, with the stock trading above its key short- and medium-term moving averages. The recent consolidation near resistance suggests accumulation at elevated marks rather than earnings booking.

Momentum indicators are additionally improving, with the RSI rebounding above 60, indicating strengthening bullish momentum. Target: Rs 175 Stop-Loss: Rs 162

Sona BLW Precision Forgings | CMP: Rs 830

Sona BLW Precision Forgings has staged a firm breakout above the key resistance zone, indicating a continuation of its recent uptrend. The stock has been forming a series of elevated highs and elevated lows and is comfortably trading above its key moving averages, reflecting firm trend resilience.

The breakout is supported by steady buying interest and an improving price structure following a healthy consolidation phase.

Momentum indicators stay encouraging, with the RSI holding above 60, signalling sustained bullish momentum without entering overbought territory. The stock has additionally witnessed a pickup in volumes near the breakout level, lending credibility to the ongoing move.

Overall, the technical setup stays constructive, and the stock appears well positioned for further upside as long as it sustains above the breakout level. Target: Rs 872 Stop-Loss: Rs 797

Suraksha Diagnostic | CMP: Rs 355.4

Suraksha Diagnostic keeps exhibit a firm bullish structure, with the stock maintaining its sequence of elevated highs and elevated lows following a sharp breakout from the Rs 280–285 zone. The stock is comfortably trading above its 20-day, 50-day and 100-day moving averages, reflecting sustained buying interest and a healthy trend.

After the recent surge, the stock has entered a brief consolidation phase near Rs 350–360, indicating earnings absorption rather than a trend reversal. Momentum stays supportive, with the RSI holding above 60, suggesting continued bullish resilience despite the recent consolidation.

The stock has additionally successfully defended its short-term moving averages during declines, highlighting firm demand at softer marks. A decisive move above Rs 360 could trigger the next leg of the uptrend towards Rs 380–400. Target: Rs 367 Stop-Loss: Rs 346

Sudeep Shah, Vice President – Technical and Derivatives Research at SBI Securities

Action Construction Equipment | CMP: Rs 1,232

Action Construction Equipment witnessed a consolidation breakout on September 17 and moved elevated before retracing to retest the breakout zone, which had earlier acted as resistance. The stock found firm buying interest around this zone and closed elevated, indicating that the breakout stays well supported.

The RSI briefly eased below the 60 mark before turning elevated, signalling renewed bullish momentum. The stock keeps trade comfortably above its key moving averages on both the daily and weekly charts.

The upward-sloping MACD on the weekly chart indicates that broader bullish momentum stays intact, while the rising ADX points to strengthening trend momentum. Hence, accumulation is recommended in the Rs 1,225–1,235 zone, with a stop-loss at Rs 1,185. On the upside, the stock is likely to test Rs 1,325 in the short term. Target: Rs 1,325 Stop-Loss: Rs 1,185

Vatsal Bhuva, Technical Market observer at LKP Securities

Dr Lal PathLabs | CMP: Rs 1,987

On the weekly chart, a breakout from a triangle pattern is visible, indicating a potential shift towards a positive trend. Following the breakout, Dr Lal PathLabs is at present consolidating at elevated marks while sustaining above its crucial 20-DMA, suggesting that the breakout stays intact.

The RSI has additionally witnessed a bullish crossover, indicating improving momentum and resilience in the stock. Overall, the technical setup stays constructive, with elevated-level consolidation following the breakout potentially providing a base for further upward movement, subject to sustained trading above the breakout zone. Target: Rs 2,120 Stop-Loss: Rs 1,900

Divis Laboratories | CMP: Rs 9,291.5

On the daily chart, Wednesday's price action confirms the previously observed negative divergence, while Divis Laboratories has additionally closed below its crucial 20-DMA, indicating weakening momentum.

The RSI has further given a bearish crossover, adding to the negative technical setup. Considering these developments, the stock may witness further correction in the near term. Sustained softness below the 20-DMA could extend the downside towards Rs 9,000 and Rs 8,800. Sell October futures at around Rs 9,346. Target: Rs 9,100