According to Rupak De, Senior Technical Analyst at LKP Securities, positive market sentiment is driving selective high-conviction breakout opportunities. De highlights Aegis Vopak, Lodha, and Aurobindo Pharma as top short-term picks. Backed by solid daily and weekly chart breakouts, bullish RSI crossovers, and strong positions above critical moving averages, these stocks are primed to target significant gains.

Edited excerpts from a chat:

Following 4 consecutive weeks of gains, what levels is Nifty eyeing in the July series?
The index has gained over the last four weeks, rising from 23,070 to 24,378, which is a little less than 6%. On the daily chart, the index has given a consolidation breakout, suggesting an improved bullish sentiment. Besides, the RSI is in a bullish crossover on both the daily as well as the weekly chart. An immediate resistance is placed at 24,400, where the 50-week EMA lies. A sustained move above 24,400 might trigger a more impulsive rally in the market. However, a fall below 24,000 might cast doubt on the recent rise. In this scenario, a buy-on-dips strategy looks apt for traders, with a stop-loss placed at 24,000, targeting 24,800–24,850.

Nifty IT index hit fresh multi-year lows in the week but displayed signs of bottom-fishing in previous 2 days. Is this bounce sustainable?

The last two trading sessions have been spectacular for Indian IT stocks, leading to a sharp recovery in the IT index. The index has formed a hammer pattern on the weekly chart, which is a bullish reversal pattern. The daily RSI has entered a positive crossover. Besides, the RSI is showing a positive divergence on the daily timeframe. Sentiment is likely to remain positive from here, with an immediate resistance placed at 28,000. A decisive move above 28,000 might create further positivity in the space, potentially taking the index towards 30,000. On the lower end, support is placed at 26,800.

PSU banks were among the biggest losers in the week. How would you go about trading the pack?
The PSU Bank Index has slipped below a critical moving average. Besides, a hidden negative divergence was visible, suggesting a negative shift in momentum. A decisive fall below 8,400 might trigger a deeper correction in the space. However, a quick recovery above 8,500 could provide the required momentum for the index. A sustained move above 8,500 might lead to a significant rally in the PSU Bank Index.

GE Vernova, Hitachi and Siemens Energy fell on Friday amid negative news flow around Chinese firms being allowed in India in the power equipment sector. Do you think that these stocks can bounce back and those who missed the rally can buy now?
These stocks have suddenly derailed following negative developments in the sector. All three stocks have witnessed channel or consolidation breakdown. Besides, they have fallen below their critical short-term moving averages, indicating weakness in the near-term trend. My sense is that it would be better to stay away from these stocks for some time until the dust settles and they show signs of a fresh uptrend.

Give us your top ideas of the week ahead.

Buy AEGISVOPAK 257.45 SL 247 TGT 273
The stock has given a consolidation breakout on the daily timeframe, suggesting a rise in optimism. Besides, the stock has moved above its 200-DMA, confirming a positive trend. The RSI is in a bullish crossover on both the daily and weekly timeframes. Over the short term, the trend is likely to remain positive, with the potential to rise towards 273. On the downside, support is placed at 247, below which the stock could witness a decline.

Buy LODHA 1057 SL 1017 TGT 1125
The stock has given an ascending triangle breakout on the daily chart, suggesting a continuation of the prevailing uptrend. Besides, the stock has moved above its 200-DMA, confirming improving price strength. The RSI is in a bullish crossover and has broken out of its consolidation, indicating strengthening momentum. Over the short term, the trend is likely to remain positive, with the potential to rise towards 1,125. On the downside, support is placed at 1,017, below which the stock could fall back into a consolidation phase.

Buy AUROPHARMA 1620 SL 1570 TGT 1700
On the weekly chart, the stock has given a swing high breakout, suggesting a significant improvement in sentiment. In the recent price action, the stock has also witnessed a consolidation breakout. The RSI is in a bullish crossover and continues to trend higher. Besides, the stock has sustained above its critical moving averages, confirming the prevailing uptrend. Over the short term, the positive momentum is likely to continue. On the downside, support is placed at 1,570, while on the upside, the stock has the potential to move towards 1,700.