The benchmark indices rallied more than 1.3 percent on May 25, extending their upward move for a second consecutive session. Market breadth strongly favoured the bulls, with 2,054 shares advancing against 942 declining shares on the NSE. Market momentum is expected to remain positive amid hopes of a US-Iran peace deal. Below are some short-term trading ideas to consider:
Jigar S Patel, Senior Manager - Equity Research at Anand Rathi
Aarti Industries | CMP: Rs 482.6
Aarti Industries has recently witnessed a strong breakout above its major Yearly Camarilla (R4) and Floor Pivot resistance levels (R1) on the monthly chart. Importantly, the stock has also successfully retested the breakout zone, which is now expected to act as a strong support area going forward.
Momentum indicators continue to remain favourable, with MACD, RSI, and DMI all indicating positive strength and improving bullish momentum. Traders may consider entering long positions in the Rs 485–475 zone, with a target of Rs 550.
Strategy: Buy
Target: Rs 550
Stop-Loss: Rs 435
Dixon Technologies | CMP: Rs 11,824
Dixon Technologies has witnessed a strong bullish breakout after surpassing its previous swing high (B point) on a closing basis, as depicted in the chart. With this breakout, the stock appears to be progressing toward the completion of a bullish AB=CD pattern, wherein the projected D point is placed near the Rs 13,000–12,950 zone.
Momentum indicators continue to support the positive outlook, with RSI, MACD, and DMI all indicating strengthening bullish momentum and an improving trend structure. Considering the overall technical setup, traders may consider buying in the Rs 11,850–11,650 zone, with a stop-loss at Rs 11,000. On the upside, the stock has the potential to move toward the Rs 13,000 target in the coming weeks.
Strategy: Buy
Target: Rs 13,000
Stop-Loss: Rs 11,000
Bharat Electronics | CMP: Rs 421.85
Recently, Bharat Electronics formed a strong base near the Rs 405–410 zone, which coincides with the 78.6 percent retracement level and the 1.618 extension level, as highlighted in the chart. This confluence of technical levels suggests the presence of a strong support area.
Moreover, momentum indicators such as MACD and RSI indicate exhaustion at lower levels, suggesting that selling pressure may be gradually weakening. The stock is also showing signs of stability around the support zone, which could pave the way for a potential rebound. Hence, a recovery in price action may be seen in the upcoming sessions.
Traders may consider entering long positions in the Rs 423–417 zone, with a target of Rs 450.
Strategy: Buy
Target: Rs 450
Stop-Loss: Rs 405
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
State Bank of India | CMP: Rs 969.6
SBI has fallen sharply, especially following its quarterly results announcement. However, the stock now appears to have reversed course, as it has started forming higher tops and bottoms on the daily charts, along with a decrease in open interest in the futures segment, which indicates short covering.
There are still a lot of accumulated short positions in this stock, and the options data indicate significant Put additions at lower levels in the June series. The Rs 970 strike now holds the highest Put open interest, whereas the Rs 1,000 strike is the only strike with the highest Call base. Therefore, the probability of an upside move appears much higher from here.
Above the Rs 1,000 level, there is no major hurdle until Rs 1,100, according to the June series options data. The stock has just closed above its maximum pain level of Rs 970, so if it sustains above this level, further short covering cannot be ruled out. Buy SBI June Futures in the range of Rs 975–985.
Strategy: Buy
Target: Rs 1,040, Rs 1,060
Stop-Loss: Rs 955
Infosys | CMP: Rs 1,168.5
The overall IT sector has accumulated a large number of short positions this calendar year. During the recent decline, the index not only underperformed but also witnessed one of the highest short-position buildups in recent times. This represents one of the extreme readings observed in the sector.
Infosys, too, has witnessed a similar trend. However, over the past week, the majority of stocks within the sector have held on to their recent swing lows and are also showing positive divergence, indicating a higher probability of short covering. The risk-reward ratio appears favourable, and from that perspective, we recommend adding long positions in the June series. Buy Infosys June Futures in the range of Rs 1,150–1,170.
Strategy: Buy
Target: Rs 1,230, Rs 1,270
Stop-Loss: Rs 1,125
Dr Reddy's Laboratories | CMP: Rs 1,331.4
The Nifty Pharma Index has performed quite well in the May series; however, Dr Reddy's has not outperformed so far, despite generally being one of the top-performing stocks.
The futures data for the stock indicate a buildup of long positions, and hence an upside breakout appears likely.
As per the June series options data, the Rs 1,300 strike has the highest Put base, and the stock is trading above it. On the upside, there is no major hurdle until the Rs 1,400 strike; therefore, the risk-reward remains favourable on the long side. The stock has also managed to close above its maximum pain level of Rs 1,320, which is also positive for the near term. Buy Dr Reddy's June Futures in the range of Rs 1,330–1,340.
Strategy: Buy
Target: Rs 1,400, Rs 1,440
Stop-Loss: Rs 1,280
Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan
Adani Energy Solutions | CMP: Rs 1,404.3
Adani Energy Solutions has shifted into an uptrend, recording a sequence of higher highs on the daily chart following a successful rebound from its 40-day EMA. From an Elliott Wave perspective, the price is currently progressing within Wave V, which is displaying an internal impulsive subdivision.
Monday's session reinforced this bullish structure, as the stock cleared its previous daily swing high and secured a decisive close above the 20-day SMA. This positive outlook is confirmed by a fresh bullish crossover on the daily momentum indicator.
Strategy: Buy
Target: Rs 1,465, Rs 1,500
Stop-Loss: Rs 1,357
Bank of India | CMP: Rs 146
After establishing a firm base around its medium-term support zone of Rs 136, Bank of India staged a breakout from a triangle consolidation during Monday's session, securing a decisive close above its key daily moving averages.
This resurgence of buying interest was preceded by a bullish crossover on the daily momentum indicator on Friday, with Monday's positive follow-through confirming the renewed uptrend.
Short-term pullbacks toward the Rs 144.50–144 zone offer a favourable accumulation opportunity, as the stock appears technically primed to target the Rs 154–160 price band in the coming sessions.
Strategy: Buy
Target: Rs 154, Rs 160
Stop-Loss: Rs 139
Ambuja Cements | CMP: Rs 441.95
Following a deep correction from its July 2024 peak of Rs 707, which unfolded within a downward-sloping channel, Ambuja Cements successfully rebounded from this medium-term structure in March 2026. This turnaround opens the door for a significant medium-term recovery.
In the short term, the stock has completed a 61.8 percent Fibonacci retracement of its prior rise and is currently consolidating around the Rs 446 mark — a pivotal intersection of the 40-day EMA and the upper boundary of its declining channel.
A decisive close above Rs 446 would hand complete control to the bulls. This breakout is already anticipated by the daily momentum indicator, which has flashed a fresh bullish crossover.
Strategy: Buy
Target: Rs 468, Rs 482
Stop-Loss: Rs 435
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.