Moneycontrol
Nov 14, 2017 12:03 PM IST | Source: Moneycontrol.com

Use dips to buy; Top 3 stocks which could give up to 14% return in 3-4 weeks

With the current reading of 14, some more volatility cannot be ruled out as it approaches upper end of the band i.e. 15; following which it can start to fall backward as VIX has a mean reverting tendency.

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Aditya Agarwala

YES Securities

The Nifty Index future witnessed a profit booking decline in the last 5 trading sessions post its breakdown from a rising channel.

However, following this correction it is approaching the crucial 61.8 percent Fibonacci retracement level along with the neckline support placed between 10,265-10,235; which also happened to the GAP area.

A sustained trade above this support zone can trigger short covering rally taking it to levels of 10,470-10,530. However, failure to hold support levels of 10,235 can accentuate the selling pressure dragging the Index lower to levels of 10,115-10,014.

Moreover, VIX has also spiked along with price correction. In a bull market, we have seen VIX oscillate between the range of 10-15.

With the current reading of 14, some more volatility cannot be ruled out as it approaches upper end of the band i.e. 15; following which it can start to fall backward as VIX has a mean reverting tendency.

Current corrections can be used as a buying opportunity as the major trend of the market remains upwards.

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Here is a list of three stocks which could give up to 14% return in next 3-4 weeks:

OFSS: BUY| Target Rs4100| Stop Loss Rs3450

On the weekly chart, Oracle Financial Services Software Ltd. (OFSS) is on the verge of a breakout from a channel pattern suggesting an extension of an uptrend in the coming trading sessions.

On the daily chart, it is on the verge of a breakout from an Ascending Triangle pattern affirming bullishness. The neckline of the pattern is at 3715; a sustained trade above this resistance can take it to levels of 3930-4100.

The relative strength index (RSI) has also broken out of the upper end of the Bollinger Bands, affirming bullishness. Stock can be bought in the range of 3640-3650 for targets of 3930-4100; keeping a stop loss below 3450.

Minda Corporation: BUY| Target Rs175| Stop Loss Rs146

On the weekly chart, Minda Corporation Ltd. (MINDACORP) has broken out from a trend line resistance affirming strong bullishness dominant at the moment. RSI on the weekly chart has taken support at the 60 level and has broken out from upper Bollinger Band squeeze.

On the daily chart, it has broken out from a Pennant pattern affirming the bullishness. Stock can be bought in the range of 153-157 for targets of 167-175, keeping a stop loss below 146.

Dhanuka Agritech: BUY| Target Rs740| Stop Loss Rs620

On the weekly chart, Dhanuka Agritech Ltd. (DHANUKA) is on the verge of a breakout from a falling Wedge pattern. Further, it has formed a Double Bottom at the 178.6% Fibonacci retracement level affirming the bullishness building up in the stock.

RSI on the daily chart has turned upwards after forming a positive divergence portending to higher levels in the coming trading sessions. Stock can be bought in the range of 650-653 for targets of 710-740, keeping a stop loss below 620.

Disclaimer: The author is Technical Analyst, YES Securities (I) Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his 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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