Moneycontrol
Sep 13, 2017 09:36 AM IST | Source: Moneycontrol.com

Nifty likely to head towards 10,200; 5 stocks which can give up to 17% return

September series' derivative data is stronger than August series as we have been continuously seeing open interest addition post expiry.

Nifty likely to head towards 10,200; 5 stocks which can give up to 17% return

SMC Global

The derivative data indicates bullish scenario is likely to continue. The Nifty has multiple strong supports at lower levels. Various supports are placed at 9,950, 10,000, 10,050 spot levels.

As per the current scenario, we expect short covering on every dip as Nifty is moving higher, with a decent addition in open interest which indicates strength in the current trend.

Option writers were active in recent rally as we have seen hefty put writing in 9900, 10000 puts and unwinding in calls. FPIs options data also indicates fresh buying in index calls (10000, 9900 post expiry).

September series' derivative data is stronger than August series as we have been continuously seeing open interest addition post expiry. On the technical front, 10000 spot levels are strong support zone and the current trend is likely to continue towards 10150-10200.

Here is a list of top five stocks which can give up to 17% upside in short term:

HPL Electric & Power : BUY| Target Rs164| Stop Loss Rs127| Return 17%

The stock has formed a double bottom formation on the daily charts around Rs115 levels and risen sharply there on. It is now trading above its 100 and 200 days EMA.

Moreover, it has given a breakout above its recent resistance of Rs140 levels in the previous session with decent volumes after creating rounding bottom pattern on the daily charts. Traders can accumulate the stock in a range of Rs145-140 for the target of 164 with a stop loss below Rs127.

Escorts: BUY| Target Rs753| Stop Loss Rs623| Return 12%

The stock has fallen from Rs750 levels to Rs550 levels amid profit booking at higher levels and took support at its 200 days EMA on daily charts.

However, we saw a recovery in prices since then as the stock has managed to rise above its 100 days EMA.

In the previous session, it has given symmetrical triangle breakout above Rs675 levels along with large volumes. Traders can accumulate the stock in a range of Rs680-670 for the upside target of Rs753 with a stop loss below Rs623.

RBL Bank: BUY| Target Rs595| Stop Loss Rs500| Return 11%

The stock has been consolidating in range of 500-550 for more than ten weeks and has now formed an inverted head and shoulder formation on daily charts.

Furthermore, the stock is on the verge of a breakout above its neckline with positive divergence in oscillators like RSI and Stochastic. Traders can accumulate the stock in a range of Rs540-535 for the target of Rs595 with a stop loss below Rs500.

Havells India: BUY| Target Rs578| Stop Loss Rs455| Return 15%

In the recent past, the stock has given handsome returns as it took one sided sharp rally from 325 to 500 levels. However, since then, the stock went into consolidation and traded in a range of Rs450-500 for more than fifteen weeks.

In the previous session once again, buying momentum was seen on the charts as it has given upside breakout above Rs500 levels.

Additionally, it has also formed a bullish flag formation on the weekly charts and has given an upside breakout above the falling trend line. Traders can accumulate the stock in a range of Rs510-500 for the target of Rs578 with a stop loss below Rs455.

Veto Switchgears and Cables: BUY| Target Rs248| Stop Loss Rs195| Return 15%

After recovering from its recent lows the stock has been trading in the narrow range of 205-220. On the weekly charts, the stock has been making higher highs and higher lows and following the upward channel.

Moreover, it has now formed a rectangle formation on the weekly charts which is traded as continuation pattern of the previous trend. Traders can accumulate the stock in a range of Rs220-215 for the target of Rs248 with a stop loss below Rs195.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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