Short covering expected if Nifty moves past 9900; 5 stocks which can give up to 14% return
On the downside 9750-9700 should act as a strong support area. Overall, data has turned slightly positive post expiry and further up move can be seen towards 10,000 levels.
Rollover data to October series indicates long rollover. The range of 9,800-10,000 levels will remain crucial for this week as indicated by option open interest concentration.
Post expiry, we have seen some buying interest by foreign investors (FIIs), in the Index futures & stock futures. If Nifty moves above the 9,900 mark, we can see short covering towards 10000 levels.
However, on the downside 9750-9700 should act as a strong support area. Overall, data has turned slightly positive post expiry and further up move can be seen towards 10,000 levels.
Here is a list of top five stocks which can give up to 14% return in the short term:
Thomas Cook (India) Ltd: BUY| Target Rs278| Stop Loss Rs234| Return 11%
On the daily charts, the stock has recovered sharply from its recent lows of Rs215 and moved towards Rs250 levels. It has been consolidating in a tight range of 250-230 thereon.
In Tuesday’s session stock witnessed fresh price volume breakout above Rs250 after the consolidation of more than four weeks. Traders can accumulate the stock in the range of Rs250-253 for the target of Rs278 and a stop loss below Rs234.
APL Apollo Tubes Ltd: BUY| Target Rs2050| Stop Loss Rs1650| Return 14 %
In recent past, the stock has traveled sharply higher towards Rs1900 levels after giving a breakout above Rs1650 levels. However, since then, the stock retraced gains due to profit booking.
Once again, the stock took support at its previous breakout level of Rs1650 and rose sharply with comparatively larger volumes. The trend is expected to continue once again towards recent highs with supportive RSI and stochastic.
Traders can accumulate the stock in a range of Rs1790-1800 for the upside target of Rs 2,050 with a stop loss below 1650.
Gujarat Gas : BUY| Target Rs965| Stop Loss Rs790| Return 12%
The stock has been maintaining its bull run by making higher highs and higher lows on the daily charts. In the previous session, the stock witnessed buying momentum with decent volumes.
Moreover, on the weekly charts, the stock has made rounding bottom and is on the verge of a fresh breakout. Traders can accumulate the stock in a range of Rs855-860 for the target of Rs965 and a stop loss below 790.
Sadbhav Engineering: BUY| Target Rs330| Stop Loss Rs 278| Return 11%
The stock has made an ‘Inverted Head and Shoulder’ formation on the daily charts and has given a breakout above the neckline. Moreover, higher volumes in recent sessions along with the rise in price suggest the upside in prices in coming sessions to remain to sustain.
Traders can accumulate the stock in a range of Rs295-300 for the target of Rs330 and a stop loss below Rs278.
Sundaram Finance: BUY| Target Rs1,880| Stop Loss Rs1600| Return 11%
On the daily charts, the stock has formed a Cup and Handle formation and has also given a break above the falling trendline of the handle in the pattern, which is generally traded as a bullish pattern.
Moreover, prices are maintaining well above its short and long-term moving averages with multiple supports on the downside.
Traders can accumulate the stock in range of Rs1695-1705 for the target of Rs1882 and a stop loss below Rs1600Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol 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.