F&O strategy: Analyst bets on Polycab; shorts Torrent Power, Eicher Motors

Stocks recommendations by Aakash Shah, Choice Equity Broking

Torrent Power

Sell TORNTPOWER in Future ₹1,481 | Stop-loss ₹1,525 | Target: ₹1,375 

Torrent Power has witnessed a strong upward rally in the previous month, moving from the 1,266 zone to a recent swing high near 1,605 levels, delivering almost a 27 per cent upside move in a short span. After such a sharp rally, the stock has started showing early signs of exhaustion on the daily chart. Near the recent top around 1,605, the price formed an Inverted Hammer candlestick, which typically signals potential weakness and a possible trend reversal from

 

higher levels.

 

Over the last few trading sessions, the structure has shifted into a Lower High – Lower Low formation, indicating that selling pressure is gradually increasing. In the most recent session, the stock has also closed below its 20-day and 50-day EMA, which reflects weakening short-term momentum and confirms the loss of bullish strength.

 

If the current downside momentum continues, the next major support is expected around the 1,375 zone, which coincides with the 200-day EMA support area. Hence, 1,375 remains the downside target, while 1,525 should be maintained as a strict stop loss to manage risk.

Eicher Motors

Sell EICHERMOT in Future ₹7,620 | Stop-loss: ₹8,000 | Target: ₹7,240

Eicher Motors share price has been in a strong and consistent bullish trend over the past six months, forming a steady higher high and higher low structure on the daily chart. The stock marked an important bottom around August 1, 2025, from where it delivered an impressive rally of nearly 50 per cent from its lows, reflecting strong institutional participation and sustained momentum.

 

However, after such a strong upside run, the stock is now showing early signs of short-term exhaustion. Recently, the price action formed a Bearish Engulfing candlestick pattern near the top, which typically indicates potential distribution and a possible reversal from higher levels. Additionally, in the latest sessions the stock has closed below its key short-term moving averages — the 20-day and 50-day EMA, suggesting weakening bullish momentum.

 

This breakdown below the short-term EMA cluster indicates that a corrective phase may unfold in the near term. The next major support zone is expected near 7,240, which aligns with the 100-day EMA support level. Therefore, the downside target remains 7,240, while 8,000 acts as a crucial psychological resistance and should be maintained as the stop loss.

Polycab India

Buy POLYCAB in Future ₹8,552 | Stop-loss: ₹8,250 | Target: ₹9,330

Polycab India share price continues to display a strong long-term bullish structure, maintaining a consistent higher high – higher low formation on the daily chart. Recently, the stock registered a fresh all-time high near 8722, highlighting strong buying interest and positive momentum within the broader trend. Even after touching new highs, the price is currently consolidating around 8550 levels, which remains close to the recent breakout zone.

 

The stock witnessed a powerful rally during February, delivering nearly 30 per cent returns, supported by strong price structure and steady demand. A key technical trigger occurred when the price broke above the previous consolidation resistance around 7,900, confirming a breakout and initiating the current bullish leg. Since then, the stock has been consistently respecting the 20-day EMA as dynamic support, indicating healthy trend continuation.

 

The current consolidation appears constructive rather than weak, suggesting accumulation at higher levels. If the bullish momentum continues, the next upside objective is seen near 9,330, which aligns with the 0.786 Fibonacci extension level. The 8,250 zone should act as a protective stop loss, placed just below the recent swing support and the 20-day EMA cluster.  Disclaimer: This article is by Aakash Shah, technical research analyst, Choice Equity Broking. Views expressed are his own.