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Jan 08, 2018 08:33 AM IST | Source: Moneycontrol.com

Nifty likely to head towards 10,630; 4 stocks which can give up to 15% upside

With a positive outlook on global cues coupled with decent macro data, it signed an uptrend rally in the upcoming session. We expect the index to trade at the rangebound level at 10,630 on upside and 10,430 on the downside.

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Dinesh Rohira

5nance.com

The Indian equity market poised a fresh higher level despite trading on sideways direction during the initial trading session. The Nifty index managed to decisively breakout from its crucial level and closed the session on record high level at 10,558.

The breakout from the truncated movement is certainly indicating a bullish rally for long-term if the index manages to hold above 10,550 level on a closing basis.

On the daily price chart, the index formed a small bullish candlestick pattern after remaining under downtrend in two out of five trading sessions and gave a positive outlook for the next session.

Further, the secondary momentum indicator witnessed a healthy consolidation with RSI level retracing at 63.3 level coupled with positive crossover on its MACD.

Based on Fibonacci Retracement, currently, the index is trading above all the level with major support at 10,362 level and immediate resistance level at 10,566.

With a positive outlook on global cues coupled with decent macro data, it signed an uptrend rally in the upcoming session. We expect the index to trade at the rangebound level at 10,630 on upside and 10,430 on the downside.

However, a trader with long position should maintain a strict stoploss below 10,520 level.

Here is a list of top 4 stocks which can give up to 15% return in the short term:

Reliance Communication: BUY| Target Rs39 | Stop-loss Rs28 | Return 15%

Reliance Communication witnessed a healthy consolidation at a lower level after an initial rally during last week of December at 36 level. It is currently trying to breakout from its 52-week high at 41-level which will remain as strong resistance for the scrip.

Further, the scrip rebounded strongly along with its volume growth at current level with a bullish outlook. On its daily price chart, the scrip formed a bullish candlestick pattern after ending the last session on positive cues.

Further, it surpassed short-term price averages and positive crossover on the various momentum oscillators indicating a bullish stance.

The stock is facing a resistance level at 41 and support level at 28.55. We have a BUY recommendation for Reliance Communication which is currently trading at Rs. 34

Pokarna Limited: BUY| Target Rs270 | Stop-loss Rs235 | Return 9%

Pokarna maintained a strong bullish rally on its weekly price chart despite facing a serious headwind during the month of September 2017.

In last few weeks the scrip witnessed a bullish reversal trend, and managed to decisively close the session on bullish trajectory. It further observed a strong volume growth in last week’s closing session.

On the daily price chart, the stock formed a bullish candlestick pattern which is expected to support the next leap of momentum after healthy movement in the previous session.

Further, the secondary trend indicator suggests a favourable buying price regime with RSI at 58 up from earlier levels coupled with a price just getting above its crucial 200-days EMA level.

The stock is currently facing an immediate resistance at 255 followed by 278 and support level at 232. We have a BUY recommendation for Pokarna which is currently trading at Rs. 247.85

Gravita India: BUY| Target Rs187 | Stop-loss Rs163 | Return 6%

Gravita India witnessed with a strong uptrend momentum in current regime and formed a series of peaks on its long-term chart after trading at a range-bound level between 152-165 levels.

It was further aided by growth in volume along with its upward movement and gained about 6.6 percent intraday basis.

The scrip made a major breakout from its earlier resistance and formed a fresh higher level on an intraday basis. Further, it formed a strong bullish candlestick-pattern on its weekly price chart and surpassed its upper band which indicates a positive signal.

The secondary momentum indicator further suggested a strong support for an uptrend regime with incremental in its RSI level at 71 along with MACD still continuing above Signal Line.

The stock is currently trading above its 20&50-days SMA level which indicates a positive signal. It is facing a resistance at 189 level and support level at 158. We have a BUY recommendation for Gravita India which is currently trading at Rs. 176

Balaji Amines Ltd: BUY| Target Rs. 695 | Stop-loss Rs. 658 | Return 5%

Balaji Amines witnessed a robust bullish reversal trend after consolidating at its crucial support level placed at 610 level and managed to close the session on positive trajectory near its 52-week high.

The Bollinger bandwidth suggested a strong squeeze happening at the current level and has moved strongly towards the upper band, which is a positive signal.

On the daily price chart, the stock formed a bullish candlestick pattern on the backdrop of positive closing level during the weekend session. The secondary momentum indicator further suggested at the bullish trend with a rise in RSI at 67 level although weak outlook from MACD.

However, the stock managed to close above its 20-days EMA, and thus strengthening the positive sentiment in forward-looking session. The stock is currently facing upper-resistance at 705 level and immediate support at 641 level.

We have a BUY recommendation for Balaji Amines which is currently trading at Rs. 660.40

Disclaimer: The author is Founder & CEO, 5nance.com. 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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