Tech Picks: 5 stocks which could give up to 13% return in short term
The Nifty has given awaited breakout after trading in a narrow range for ten sessions in presence of adequate volume suggesting uptrend will continue and we may see 9,500-9,550 levels in the near term.
From the low of December 2016 to current levels, Nifty has given nearly 18 percent return and at the moment its look like benchmark is in full up the mood.
Considering Technical, index trading in rising channel and we witnessed after surging from 9000 levels to 9300 levels, Nifty went into consolidation mood and on Wednesday session we have got another breakout which will unfold more fresh targets in near term.
If we look at the derivative setup, highest open interest shifted to 9,500 which is previously at 9,400 a day before suggesting next hurdle would be 9,500 and on the downside 9,300 PE is having highest open interest acting as strong support.
Our overall stance will be on the positive side and we are expecting to hold current levels. We may see the Nifty index to march towards 9,500-9,600 levels in the near-term.
Top five Technical picks which can give return up to 13 percent in short-term.
Mah & Mah Ltd: BUY| Target Rs 1500 | Stop Loss Rs 1260 | Upside 12%
Mah & Mah Ltd showed very good buying interest recently from the lower level of Rs1270. After making high at Rs1503 levels stock went in correction mood and touched its strong demand zone Rs1150 and we have seen a very good buying interest from lower levels as a results stock pushed towards Rs1350 levels.
If we look at broader chart stock trading in the range of 1100-1500 and recent bounce from Rs1100 levels with adequate volume suggest that stock is all set to touch its upper band resistance which is 1500. We have seen a very good volume activity on the lower side which is again a positive sign.
By keeping our bullish view on the stock, traders can buy at the current level for the target of Rs1500 with keeping a stop loss below Rs1260 on the daily closing basis.
Astral Poly: BUY | Target Rs 650 | Stop Loss Rs 540 | Upside 12%
The stock was on the radar since it has given a strong consolidation breakout in mid-March with huge volume.
If we look at weekly chart stock has given a decisive breakout from its one-year consolidation area and stock again given a breakout on daily chart from its nearly one-month consolidation suggesting more upside in counter.
Momentum indicator RSI currently trading near 62 zone which is considered to be a bullish zone.
By considering a technical breakout bonanza recommends buy on stock at a current market price or any decline up to 565 for the targets of 650 with keeping a stop below 540 on the daily closing basis.
Capital First: BUY| Target Rs 870 | Stop Loss Rs 735| Upside 10%
The share price of capital first has registered a small symmetrical triangle breakout on the daily chart.
Stock trading in an uptrend since it has given small double bottom breakout at the start of the year. If we study weekly chart stock trading in higher high higher low formation which bullish continuation pattern.
We have witnessed volume also zoomed with increasing price which is again a healthy sign for the stock. On the flip side, the stock has a strong resistance near 800 levels and any closing above 800 levels will push prices towards upside targets of 850-870 zone.
Considering above technical setup Bonanza recommends a buy call on stock at a current price to any decline up to 770 levels for the targets of 870 with maintaining stop loss below 735 on a closing basis.
Eicher Motors: BUY | Target Rs 30,000 | Stop Loss Rs 25,500 | Upside 11%
The stock has given a multifold return in the past and currently trading at its 52 week high. On the daily chart, the stock has given breakout from its Cup & Handle pattern with huge volume hinting more fresh levels in near term.
If we study weekly chart stock is trading in rising channel pattern by forming “Higher high Higher low” formation which is bullish in nature. Momentum indicator RSI also broke above its range and currently reading near 66 which is also a bullish sign.
One can take a position in the stock on the basis of above technical evidence; we expect prices to march towards 30000 in near term with keeping stop out below 25500 on a closing basis.
Container Corp: BUY| Target Rs 1,340 | Stop Loss Rs 1,120 | Upside 13%
Container Corp corrected after making its lifetime high at Rs1558 on Jun 2015 and took a pause at its 68.20% retracement zone from previous low which is consider being a very strong support technically.
Recently the stock has again given a bounce from same support and volume activity also zoomed with price action suggesting good levels in near term. On the weekly chart, we can see a falling channel breakout which is again bullish sign.
On the flip side, the stock has formed strong resistance near 1240 level which is its previous high and we have seen profit booking from the same level.
We expect the stock to trade on a positive note for its coming sessions so one can go long at current levels to any decline for the targets of Rs1340 with keeping a stop loss below 1120 on a closing basis.Disclaimer: The author is Senior Research analyst, Bonanza Portfolio Ltd. 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.