Now, a break above 9,650 would strengthen the bullish argument till that time the index is likely to trade in a range.
The Nifty reclaimed its crucial psychological level of 9600 on Monday and is on track to hit its next crucial level of 9,700. However, technical chartists see further consolidation ahead for the index and it would not be that easy to break above 9,700 in a hurry.
The market has tapered off from fresh all-time highs hit last month but it managed to take support above its crucial support level of 9550. Now, a break above 9,650 would strengthen the bullish argument till that time the index is likely to trade in a range.
“Candlestick analysis shows a mixed bag of a picture and the index is likely to trade in a broad range of 9,450 - 9,750 for next few weeks,” Pushkaraj Kanitkar - AVP - Technical Research at GEPL Capital told Moneycontrol.
“Even though the index is expected to trade in a range, individual stocks are likely to remain in action and one should continue having a stock specific approach,” he said.
Based on technical charts we have collated stock picks from various experts which can give up to 18 percent return in next 5-8 weeks:
Analyst: Pushkaraj Kanitkar - AVP - Technical Research at GEPL Capital
Century Textiles: BUY| Target Rs1150| Stop Loss Rs 1079| Return 3%
In spite of the overall sombre nature of the markets, the scrip has outperformed over last few days with prices crossing onto 3-week high.
The delivered quantity has seen a good jump in last few days. These quantities stand between 1.5-1.75 times of the average delivered volumes, indicating a genuine buying interest in the scrip.
There is a drop in Open Interest (OI) over last week, indicating a lightening of positions. One may BUY with targets at Rs1,140-1,150 with a stop placed a bit below Rs1,079 mark.
Colgate Palmolive India: BUY| Target Rs 1200| Stop Loss Rs 1059| Return 9%
In the first half of June 2017, the stock saw a good breakout from Rs1054 (the 52 week HIGH) to around Rs1095. The consolidation breakout from the range is accompanied by the creation of 1 week, 3 week & 52-week high, thereby indicating an intrinsic strength.
The delivered quantity vis-a-vis total volume is at the highest in the recent past, with delivered percentage rising higher (64% vs average of 52%).
A trend buy, we feel the move would have legs to test the extrapolated levels placed at Rs1,152 and then possibly till Rs1,200. The stop maybe paced below the recent lows of around Rs1059 mark.
Ujjivan Financial: BUY| Target Rs385| Stop loss Rs300| Return 18%
The long-term chart pattern in Ujjivan is W-shaped, indicating that long-term demand zone is expected to remain around the Rs290-300 mark. The level corresponds to double trough of Dec 2016 & Jun 2017.
Huge rise in delivered quantity on a substantial candle, with 17.5 L shares getting delivered against the average of around 5.7 L spanning around 2 months of trading.
The said rise in delivery is accompanied by a huge drop in the Open Interest (OI) indicating lightening of positions. A contra-trend buy one may target the 50-DMA placed at Rs346 followed by the convergence of the 100-DMA placed at Rs385 mark.
Hindalco: SELL| Target Rs 176| Stop Loss Rs203| Return 9%
The calendar year has seen multiple failures from the 200-210 levels which also correspond to the long term top created in July 2014 placed at Rs200 levels. The weekly candlestick pattern has given rise to an Engulfing Bear candle.
The chart shows a similarity as compared to the first week of Feb 2017, as well as Apr 2017; wherein the prices started with a correction from 200 down onto 180. The said candle also similarly showed high volume characteristic.
Prices have closed near the 50 DMA @ 194, which if broken may see correction onto the 200 DMA @ 176 marks. The stop may be placed @ the Bollinger Band Top @ 203 level.
Source: SMC Capital
Century Textiles: BUY| Target Rs1190| Stop Loss Rs 1060| Return 7%
The stock closed at Rs1,110.80 on 16th June 2017. It made a 52-week low at Rs580.20 on 24th June 2016 and a 52-week high of Rs1218.80 on 12th May 2017.
The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently placed at Rs940.05. The stock gave a decent upside from Rs665 to Rs1218 levels in the past six months.
Thereafter, profit booking was witnessed from yearly high and stock found support around 1040 levels, which was the 31.8% Fibonacci retracement level of upside move (665-1218 levels) and then started moving higher.
Last week, the stock ended over 3 percent gains and also closed above the previous two weeks high which also shows that outlook is positive for coming days.
Therefore, one can buy in the range of Rs1,090-1100 levels for the upside target of Rs1,170-1,190 levels with a stop loss below Rs1,060.
Analyst: Dinesh Rohira, Founder & CEO of 5nance
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 in a strong upward trend with major support level seen at 186, 179 and higher resistance level at Rs207.
Similarly, the Bollinger Bands indicates a positive signal as the stock has touched its upper band at Rs195. This will possibly support a breakout from its higher resistance level seen at Rs207 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 percent 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 a target price of Rs 1725 and stop loss at Rs. 1615 with one month holding period.Disclaimer: 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.