CapitalKeeper Special Trending Stock Signals for August 4, 2025: High-Conviction Trades to Watch Today
By CapitalKeeper | Stock Basket | Indian Equities | Market Moves That Matter | 04th Aug 2025
The Indian stock market continues to witness heightened volatility as indices remain sensitive to global cues, earnings season updates, and domestic macro data ahead of the RBI policy meet this week. Amidst this environment, selective opportunities are emerging across financials, PSU rail infra plays, and energy names. Below is our curated list of trending trade setups based on current market levels and technical structures.
1. SBI Life Insurance (CMP: ₹1,815)
Options Play: 1800 Put Option
- Current Market Price (CMP): ₹27
- Buy Zone: ₹20–₹25
- Stop Loss: ₹15
- Target: ₹35–₹40
- Cash Target: ₹1,700
Rationale:
SBI Life has been under pressure after failing to sustain above its 1,860–1,870 resistance zone. The stock has repeatedly shown signs of selling at higher levels with increasing open interest on the put side. On the daily chart, the 50-DMA at around 1,810 is being tested; a decisive breakdown could trigger a move towards 1,750–1,720 in the short term.
- F&O Perspective:
The 1,800 PE is witnessing accumulation at lower premiums, indicating defensive hedging activity. Buying near ₹20–₹25 offers favorable risk-reward for traders targeting a dip to 1,700 in cash. - Trigger Level:
Watch for sustained trading below 1,805 to initiate fresh shorts with aggressive downside targets.
2. Federal Bank (CMP: ₹196)
Options Play: 200 Call Option
- Entry Price: ₹3.30
- Target: ₹5–₹7
- Stop Loss: ₹1.60
Rationale:
Federal Bank has been consolidating near ₹195–₹198 after a healthy uptrend from the ₹180 zone. The stock is showing relative strength compared to the broader financial index, with strong support placed around ₹192–₹193. A breakout above ₹200 on closing basis could trigger a rally towards ₹207–₹210.
- F&O Activity:
There is visible call writing at 210 CE and fresh long build-up at 200 CE, suggesting traders are positioning for a near-term breakout. - Technical Structure:
Daily RSI is holding above 55, and price action suggests a bullish flag pattern formation. Buying 200 CE offers a low-risk entry for short-term traders.
3. Indian Railway Finance Corporation (IRFC) (CMP: ₹128.35)
Options Play: 135 Call Option
- Entry Price: ₹2
- Target: ₹3–₹4
- Stop Loss: ₹1.20
Rationale:
Railway-linked stocks have been buzzing ahead of new capex announcements and expectations of enhanced infra push from the government. IRFC, being a financing arm for railways, has rallied strongly in recent months but is now forming a bullish continuation pattern.
- Key Levels:
Immediate resistance is seen at ₹133–₹135; a breakout can lead to ₹140+ levels quickly. - F&O Data:
The 135 CE is seeing fresh addition of long positions with supportive volumes. Premiums around ₹2 provide attractive risk-reward with stop at ₹1.20.
4. Jindal Stainless (JSL) (CMP: ₹715)
Cash Trade Setup
- Buy Allocation: 40% at current levels (₹715)
- Add More: Near ₹655 if price dips
- Stop Loss: Below ₹625
- Targets: ₹780–₹820 in coming weeks
Rationale:
Jindal Stainless remains one of the strongest performers in the metals space, supported by robust demand in specialty steel and export markets. The stock recently retraced from 750 levels but continues to trade well above its major moving averages, signaling strength on dips.
- Strategy:
Partial accumulation at CMP with scope to add more if correction extends towards support at 650. A positional play targeting 780+ is justified given bullish volume action and strong fundamentals.
5. JSW Energy (CMP: ₹525)
Cash Trade Setup
- Target: ₹598
- Stop Loss: ₹505
Rationale:
JSW Energy has emerged as a key beneficiary of the renewable energy transition, with recent announcements around capacity expansion boosting investor sentiment. The stock has been in a sustained uptrend, making higher highs and higher lows on the daily timeframe.
- Technical View:
Price is consolidating near 520–530 zone, which coincides with 20-DMA support. RSI remains in bullish territory at 63, and volume patterns indicate accumulation by institutional players. - Trade Plan:
Positional buying is advised with SL at ₹505 and upside potential towards ₹590–₹600 in the medium term.
Overall Market View
- Nifty 50 Outlook:
Nifty is trading near 24,700 after reclaiming key supports at 24,500. Momentum indicators suggest sideways-to-positive bias, but caution is warranted ahead of RBI policy. Major support lies at 24,420 (OI base) and resistance at 24,850–24,900. - Bank Nifty Outlook:
Bank Nifty remains range-bound near 55,500 with resistance at 56,200 and support at 54,800. PSU Banks are showing relative strength; watch for breakout moves post-policy commentary. - Sectoral Highlights:
- Metals & Energy: Gaining traction on global commodity upmove.
- Financials: Consolidating; selective PSU banks outperforming.
- Rail Infra: Buzzing on government spending triggers.
Trading Discipline Reminder
While these setups provide actionable signals, strict adherence to stop losses is crucial in current volatility. Traders are advised to:
- Book partial profits at first targets.
- Avoid over-leveraging positions.
- Reassess positions daily as global cues (Dow futures, USD-INR, crude) evolve.
Key Takeaway
This curated list blends high-conviction options trades (SBI Life, Federal Bank, IRFC) with positional cash plays (JSL, JSW Energy). The strategy is to capitalize on sector-specific momentum while managing risk with precise entry and exit zones. Stay nimble ahead of the RBI policy outcome, which could reset short-term market trends.
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