Technical Charts Turn Bullish as Momentum Indicators Improve; Three Stocks Show Potential for Near-Term Upside Despite Market Volatility

Indian equity markets remained under pressure amid global geopolitical uncertainties and persistent foreign institutional investor (FII) selling, but select stocks are beginning to show encouraging technical setups that could outperform the broader market in the coming sessions.

According to Anand James, Chief Market Strategist at Geojit Investments, CMS Info Systems, Aurionpro Solutions and Ashapura Minechem are displaying improving chart patterns supported by strengthening momentum indicators, rising trading volumes and favourable risk-reward profiles. While benchmark indices continue to face intermittent selling pressure, these counters have demonstrated resilience by either reversing from key support zones or breaking out of important technical formations.

Technical analysts believe that disciplined traders can benefit from such opportunities, provided key support levels are respected and stop-loss strategies are strictly followed.

Market Volatility Creates Stock-Specific Opportunities

The Indian stock market has entered a phase where stock-specific action is becoming more important than broad market direction.

While geopolitical tensions, rising crude oil prices and cautious global sentiment continue to create volatility in benchmark indices, several individual stocks are witnessing fresh buying interest due to improving technical structures.

Rather than chasing momentum across the entire market, analysts are increasingly focusing on companies showing:

• Trend reversals

• Strong support formation

• Volume expansion

• Improving momentum indicators

• Positive chart patterns

The three stocks recommended by Geojit fit into this category.

CMS Info Systems: Technical Recovery Suggests Fresh Buying Interest

Stock Attempts Reversal After Prolonged Correction

CMS Info Systems has spent the past several months under selling pressure, but recent price action suggests that the correction may be nearing completion.

The stock has rebounded sharply from its recent lows, indicating that buyers are beginning to accumulate at lower levels.

Importantly, the recovery has been supported by improved trading volumes, often considered an early indication of institutional participation.

The stock is now attempting to build a higher base, which could pave the way for a short-term recovery if broader market conditions remain supportive.

Momentum Indicators Turn Positive

Several technical indicators are beginning to support the improving price structure.

RSI Recovery

The Relative Strength Index (RSI) has moved out of the oversold zone, indicating improving buying momentum after an extended decline.

MACD Improvement

The MACD histogram has started rising from negative territory, suggesting bearish momentum is gradually fading.

Volume Expansion

Higher trading activity during the recent recovery indicates renewed investor confidence.

Trading Strategy

Recommendation: Buy

Accumulation Zone: ₹270–275

Target Price: ₹295

Stop Loss: ₹260

As long as the stock remains above the ₹260 support level, the technical outlook remains constructive.

Aurionpro Solutions: Weekly Chart Signals Long-Term Strength

Rounding Bottom Pattern Indicates Trend Reversal

Aurionpro Solutions is displaying one of the more constructive technical setups among mid-cap technology stocks.

The weekly chart suggests the formation of a rounding bottom, a pattern generally associated with long-term accumulation following an extended correction.

The stock has also started creating higher lows, indicating buyers are gradually regaining control.

Such formations often precede sustained upward trends once resistance levels are crossed.

Technical Strength Continues to Improve

The stock's momentum indicators are strengthening simultaneously.

MACD Turning Higher

The MACD histogram is recovering steadily, indicating improving trend strength.

RSI Above Moving Average

The Relative Strength Index has crossed above its moving average, reflecting increasing buying momentum.

Healthy Volume Participation

Improved volumes during recent rallies suggest that market participants are actively accumulating the stock.

Trading Strategy

Recommendation: Buy

Target Price: ₹947

Stop Loss: ₹857

Maintaining the ₹857 support level is crucial for preserving the positive technical outlook.

Ashapura Minechem: Breakout Supported by Strong Volumes

Trendline Breakout Signals Fresh Uptrend

Ashapura Minechem has delivered one of the strongest technical breakouts among the recommended stocks.

The company recently moved above a long-term declining trendline that had restricted price movement for several months.

Such breakouts often indicate that the previous downtrend has ended and a new upward trend may be developing.

What makes this breakout particularly encouraging is the sharp increase in trading volumes accompanying the move.

Volume-supported breakouts generally carry higher reliability than price movements occurring on weak participation.

Multiple Indicators Confirm Bullish Momentum

Several technical signals reinforce the positive outlook.

MACD Recovery

The MACD histogram continues moving upward, confirming improving momentum.

RSI Strengthens

The RSI has moved above its moving average, reflecting renewed buying interest.

Supertrend Buy Signal

The stock is approaching a positive Supertrend crossover, which could provide additional confirmation of the emerging uptrend.

Strong Institutional Participation

Higher-than-average trading volumes suggest accumulation by larger market participants.

Trading Strategy

Recommendation: Buy

Target Price: ₹748–790

Stop Loss: ₹666

The bullish outlook remains valid while the stock trades above ₹666.

Understanding the Technical Signals

The recommendations are based primarily on technical analysis rather than company fundamentals.

Relative Strength Index (RSI)

The RSI measures buying and selling momentum.

A rising RSI generally indicates strengthening bullish momentum.

MACD

The Moving Average Convergence Divergence (MACD) helps identify trend reversals.

A rising MACD histogram often signals weakening selling pressure and improving upside potential.

Rounding Bottom

A rounding bottom is considered a long-term bullish reversal pattern that develops gradually after extended corrections.

Trendline Breakout

Breaking above a long-term downward trendline often signals a shift from bearish to bullish sentiment.

Volume Confirmation

Increasing trading volume during price advances strengthens the credibility of technical breakouts.

Broader Market Risks Still Remain

Although the individual technical setups appear encouraging, investors should continue monitoring broader market developments.

Key factors influencing sentiment include:

• Geopolitical developments in the Middle East

• Crude oil price movements

• Foreign Institutional Investor (FII) activity

• Rupee movement

• Quarterly corporate earnings

• Global interest rate expectations

• Domestic macroeconomic data

Any sharp deterioration in overall market sentiment could temporarily affect individual technical setups.

Importance of Risk Management

Technical trading requires disciplined execution.

Investors should:

• Strictly adhere to stop-loss levels.

• Avoid overexposure to individual positions.

• Monitor trading volumes.

• Review price action daily.

• Avoid emotional decision-making during volatile sessions.

Proper risk management remains the cornerstone of successful technical trading.

Quick Technical Snapshot