Moneycontrol
Jun 18, 2017 11:10 AM IST | Source: Moneycontrol.com

A close above 9,600 would bring back bulls; 5 stocks which could give up to 10% return

And for the fourth coming week, if Nifty50 manages to close above 9,600 levels in immediate trading session then short term outlook shall turn positive and Bulls can once again make an attempt towards 9,700 levels.

A close above 9,600 would bring back bulls; 5 stocks which could give up to 10% return

Mazhar Mohammad

Chartviewindia.in

Nifty50’s behaviour after registering lifetime highs of 9709 levels, has confused the majority of the market participants as it slowly started drifting down for last 9 trading sessions albeit with a minimum price damage.

But, in between many stocks especially midcaps have lost ground as they are down by 10-20 percent from their respective tops especially in the small corrective phase witnessed before the expiry of May series.

However, this small correction in Nifty50 has brought it down to critical support levels which are placed around 9,520.

Besides, before the start of this corrective and consolidation phase in Nifty the readings of momentum oscillators were at extremely overbought levels on longer time frame charts which now appears to have cooled off to some extent which can prevent the market from going down further.

And for the fourth coming week, if Nifty50 manages to close above 9,600 levels in immediate trading session then short term outlook shall turn positive and Bulls can once again make an attempt towards 9,700 levels.

Hence, in anticipation of such a positive development traders can look into following stock specific ideas for next week.

Cummins India: BUY| Target Rs 1020| Stop Loss Rs887| Return 10%

After the recent drubbing from the highs of 1070, this counter appears to be consolidating around 900 levels from where a decent bounce back can be expected with an initial target of Rs959 levels.

However once breaks out of its consolidation zone between Rs888 – 959 higher targets of Rs1020 can be easily expected in this counter.

Hence, traders should make use of this opportunity to go long with a stop of Rs887 for an initial target of Rs959 and then a higher target of Rs1,020 on a breakout.

Shriram Transport Finance: BUY| Target Rs 1010| Stop Loss Rs940| Return 2%

After retracing around 80 percent of its last leg of the rally from the lows of 933 to 1042 this counter has registered a reversal formation called piercing pattern on candlestick charts which shall have a positive repercussion going forward for this counter.

With today’s low of Rs940 it has registered a bottom indicating that with this reversal formation this counter may initiate a fresh leg of a rally which can take it back all the way to Rs1,042 levels. Hence, traders should buy into this counter with a stop of Rs940 and for a target of Rs1010 levels.

Colgate Palmolive India Ltd: BUY| Target 1155| Stop Loss Rs1060| Return 5%

After a brief consolidation of six trading sessions, this counter appears to be on the verge of a fresh breakout as it made new lifetime high at today’s top of 1101 which augurs well for FMCG bulls especially in this counter.

Hence traders can initiate long positions with a stop of 1060 for initial targets placed around 1155.

BEL: BUY| Target Rs 180| Stop Loss Rs 163| Return 6%

With a double bottom at a recent low of 165 and three consecutive positive closes, this counter appears to be on the verge of initiating a fresh leg of up move which can initially take it towards its important logical target of 62% retracement of its entire fall from the top of 187 whose value is placed around 180. Hence one can buy for a target of 180 with a stop of 163

Reliance Industrial Infrastructure Ltd: BUY| Target Rs 485| Stop Loss Rs445| Return 5%

This counter has witnessed a breakout above its consolidation zone of Rs440 – 414 on relative much higher volumes suggesting it may be in for a bigger move.

Sustaining above this we can expect a close to Rs485 levels from where it has swiftly fallen down in the recent past. Hence, traders can buy into this breakout for a target of Rs485 with a stop below Rs445 on closing basis.

Disclaimer: The author is Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in. The views and investment tips expressed by investment experts on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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