Moneycontrol
Jun 19, 2017 08:54 AM IST | Source: Moneycontrol.com

Nifty might face resistance around 9700; 5 stocks which could give up to 15% upside

On the basis of SMA, Nifty is trading above its 20-days EMA. Further, a strong support level is seen at 9,555 while the resistance will be tested at 9,709 level.

Nifty might face resistance around 9700; 5 stocks which could give up to 15% upside

By Dinesh Rohira

Founder & CEO of 5nance

A much-needed correction phase has taken place during the weeks trading session. Despite closing on the positive bias on Friday's trading to close at 9,588, Nifty is expected to witness sideways movement during the next phase.

The relative strength index (RSI) on the daily chart stood at 56.1 while the MACD is seen at 59.1, which is below the Signal-Line of 76.6, thus forming a mixed trading outlook.

On the basis of SMA, Nifty is trading above its 20-days EMA. Further, a strong support level is seen at 9,555 while the resistance will be tested at 9,709 level.

Technical trends on the charts show a positive momentum for the mentioned stocks.

Indiabulls Real Estate: Buy | TP: Rs. 225 | Stop-loss: Rs. 186 | Upside: 15%

The stock continued to ride upward to breach its crucial resistance level at several trading session despite the consolidation seen at a certain interval. On Friday's trading, the stock ended with a gain of 7 per cent on weekly basis giving a positive outlook on weeks ahead.

The RSI of stock stood at 75 in overbought zone, while the MACD is seen above its Signal-Line at 9.92 indicating a strong technical outlook. According to the EMA, Indiabulls is at the strong upward trend with major support level seen at 186, 179 and higher resistance level at 207.

Similarly, the Bollinger Bands indicates a positive signal as the stock has touched its upper band at 195. This will possibly support a breakout from its higher resistance level seen at 207 to form new upper levels at Rs220-225.

Based on technical view, Indiabulls has a BUY call with Target Price at Rs. 225 and Stop-Loss at Rs. 186 and holding period of one month.

Vedanta: Buy | TP: Rs. 265 | Stop-loss: Rs. 225 |Upside: 12%

The stock was down by 3.25 per cent on weekly basis but sustain to trade above its crucial support level at 236, which ends the downward trend to form a reversal pattern. The RSI stood at 50, signalling a volatile movement.

However, the MACD holds a strong technical upward support to breach its immediate resistance level seen at 247. On the basis of EMA, the stock is currently trading above its 20 day EMA giving a positive cue in coming session.

The stock will face a major resistance level at 265, 255 while the support level will be seen at 230. A trader should buy Vedanta at Stop-Loss at Rs. 225 and Target Price at Rs. 265 with over one month holding period.

ITC: Buy | TP: Rs. 338 | Stop-loss: Rs. 295|Upside: 10%

Despite trading on sideways, ITC managed to gain 0.26 per cent on weekly basis supported by strong buying session on Friday. According to RSI analysis, ITC is technically strong at 56.1 and MACD trading above its Signal Line forming bullish candlestick pattern.

ITC will face a major resistance level at 308 & support level at 290 based on 20days SMA. Currently, it is trading above its 20days EMA which indicates a positive movement going forward. Further, a breakout from its upper resistance level at 319 is likely to form upper highs on the backdrop of traders’ position long.

The stock will face resistance around Rs319 and support level are placed at Rs301 & 295. We recommend BUY call on ITC with Stop-Loss at Rs. 295 and Target Price at Rs. 338 with one month holding period

Century Textiles & Industries: Buy | TP: Rs. 1180 | Stop-loss: Rs. 1091|Upside: 7%

Despite the selling pressure during the early weeks trading session, a stock rebounded back to gain 3.38 per cent on weekly basis. Since its movement from a year ago, the stock has continued its bullish trend for the longer period despite a consolidation phase at a certain event.

The RSI at 56 indicates a stock just got above its resistance level showing a further upward movement coupled with bullish crossover at regime as per MACD analysis. Further, the stock is currently trading above its 20days EMA keeping a positive cue for next upward movement.

The major support level for the stock will be seen at 1091, 1082 and upper resistance level at 1140. The breakout from upper resistance level will be tested in coming session as it continues to hold bullish trend to reach at 1218 level seen in past.

The stock has a strong support for BUY call on the technical parameter with Target Price at Rs. 1840 and Stop-Loss at Rs. 1091 for one month holding period.

Housing Development Finance Corporation: Buy | TP: Rs. 1725 | Stop-loss: Rs.1615 |Upside: 6%

On the weekly basis, HDFC Ltd gained 4 per cent despite cramping down during the Tuesday's trading session from intraday high at 1680 to close at 1635 on Friday. The selling pressure was however sustained to trade above its 20days EMA, looping a positive movement for next coming session.

The RSI indicates a strong support at 62; while the MACD analysis at 29.5 is nodding a bullish crossover to trade above Signal Line which is a positive sign.

With strong upward trend on the basis of EMA, major support level will be seen at the current levels of 1635. The stock has a BUY recommend on the basis of technical outlook with Target Price at Rs. 1725 and Stop-Loss at Rs. 1615 with one month holding period.

Disclaimer: The author is Founder & CEO of 5nance. 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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