Trading ideas: Analyst at Geojit bets on V-Mart, Lumax Auto, Enviro Infra

Anand James, chief market strategist at Geojit Investments, is bullish on the shares of V-Mart, Lumax Auto, and Enviro Infra

LUMAXTECH (LTP: ₹1,462)

View: Buy

Target: ₹1,528

SL: ₹1,433

 

LUMAXTECH appears to be showing early signs of a trend reversal after a prolonged corrective phase. The stock has found support near the ₹1,440–1,450 zone and has formed a strong bullish Marubozu candle, indicating decisive buying interest emerging at lower levels.

 

From a momentum perspective, the daily MACD is on the verge of a bullish crossover, with the histogram showing signs of contraction. Such a setup often precedes a shift in momentum when accompanied by price stabilization near key support levels.

 

Additionally, the RSI has rebounded from oversold territory and is gradually turning higher, suggesting that selling pressure may be exhausting and buyers are beginning to regain control. The positive divergence between price action and momentum indicators further strengthens the probability of a near-term recovery.

 

 

The stock is currently trading near an important support cluster, and sustained trading above the recent swing low would keep the bullish setup intact. A move above immediate resistance levels could trigger short covering and fresh buying momentum, paving the way for an upside move toward ₹1,500, which serves as the first meaningful recovery target. Protect all longs with a stop-loss placed below ₹1,433.

 

VMART (LTP: ₹774)

View: Buy

Target: ₹840

SL: ₹750

 

VMART is exhibiting a constructive technical setup after correcting from recent highs and stabilizing above a key support zone. The stock has witnessed a strong rebound from the ₹760–770 horizontal support area, a level that has repeatedly attracted buyers and acted as a demand zone in recent sessions.

 

One of the most encouraging aspects of the chart is the formation of multiple Doji candles near support, signaling indecision and exhaustion among sellers. The subsequent sharp bullish candle confirms that buyers have stepped in decisively, increasing the probability of a fresh upward leg.

 

From a momentum standpoint, the daily MACD histogram is showing a reversal, with negative bars contracting after a prolonged decline. This suggests that bearish momentum is fading, and a bullish crossover could emerge in the coming sessions if price strength persists. The RSI remains firmly positioned around the 60 level, highlighting the underlying strength in the trend.

 

Price action also reflects a healthy correction within an ongoing uptrend rather than a trend breakdown, and we expect the stock to move toward ₹840 in the near term. Protect all longs with a stop-loss placed below ₹759.

 

EIEL (LTP: ₹229)

View: Buy

Target: ₹242

SL: ₹222

 

EIEL is displaying a constructive bullish setup after a healthy pullback within its ongoing uptrend. The stock has recently retraced to the 38.2 per cent Fibonacci retracement level, measured from the June swing low to the July swing high, and has witnessed renewed buying interest from this support area. The successful defense of the 38.2% retracement suggests that the recent decline was corrective in nature rather than the start of a deeper trend reversal.

 

From a momentum perspective, the daily MACD histogram is showing signs of reversal, with negative bars beginning to contract. This indicates that bearish momentum is losing steam, and a potential bullish momentum shift could be underway. The MACD line remains well positioned for a fresh positive turn if price strength continues. The RSI remains comfortably above the 55 mark, highlighting the stock's ability to maintain bullish momentum despite the recent correction.

 

Importantly, the RSI has held above the neutral 50 level, signaling that the underlying trend remains positive and buyers continue to retain control.

 

Price action near support further reinforces the bullish case. The stock has respected both the Fibonacci support zone and key dynamic support levels, creating a favorable risk-reward setup for a move toward ₹242 in the near term. All longs may be protected with a stop-loss placed below ₹222.

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(Disclaimer: This article is by Anand James, chief market strategist, Geojit Investments. View expressed are his own. Click here for analyst disclosures)