By Achin Goel
NSE's benchmark Nifty has remained in the green so far on the weekly chart. On the weekly chart, the index made a Twizer Bottoms around 10000 and moved up northwards.
Moreover, in its recent rally, Nifty has reclaimed its crucial 200-Days moving average (DMA). Also, the index has been sustaining higher after it broke out above the falling channel.
On the options front, increased interest in 10,200 Put suggests a positive shift in the Nifty range. However, a proximity to resistance levels may induce some small correction which we think would provide a buying opportunity in the near term.
On the higher end Nifty may extend its gain towards 10,650/10,850.
Here is a list of top 5 stocks which could give up to 16% return in the short term:
Vedanta Ltd: BUY | Target:Rs 344|Stop loss: Rs 279 | Return 16%
The stock has given a falling wedge breakout on the daily chart which suggests a reversal of the previous downtrend. In addition, the price has moved above its recent range bound pattern, which shows the growing optimism in the stock.
The daily relative strength index or the RSI (14) is in the bullish crossover. It has also formed a rounding bottom. Traders can accumulate the stock in the range of Rs 292-297 for the target of Rs 344 and a stop loss below Rs 279.
Tata Consultancy Services: BUY | Target: Rs 3250 | Stop loss: Rs 2890 | Return: 8%
The stock has given a trend-line breakout on the daily chart which indicates a reversal of the previous bearish trend. The stock has moved above 38.2 percent of the previous fall from Rs 3259 to Rs 2781.
In addition, 50-DMA and 200-DMA are in a positive crossover which is known as golden cross. The daily RSI (14) has given a trend line breakout. Another momentum indicator MACD is in the bullish crossover. Traders can accumulate the stock in the range of Rs 3000-3015 for the target of Rs 3250 and a stop loss below Rs 2890.
Aurobindo Pharma Ltd: BUY | Target: Rs 680 | Stop loss: Rs 587 | Return: 10%
The stock has given a trend-line breakout on the daily chart which indicates a reversal of the previous bearish trend. In its recent move, the stock has moved above its 50 DMA after several trading sessions.
Moreover, the momentum indicator, daily RSI (14) is in bullish crossover and rising. Another momentum indicator MACD has entered into buy mode. Traders can accumulate the stock in the range of Rs 612-618 for the target of Rs 680 and a stop loss below Rs 587.
BHEL: BUY | Target: Rs 102 | Stop loss: Rs 85 | Return: 12%
The stock has formed a double bottom formation around Rs 80 and moved up which suggests reversal of the previous bearish trend. On the daily chart, the stock has given falling trendline breakout; which again suggests growing optimism in the stock.
Moreover, a momentum indicator, RSI (14) is in bullish crossover and rising on the weekly chart.
Traders can accumulate the stock in the range of Rs 89-91 for the target of Rs 102 and a stop loss below Rs 85.
ICICI Bank Ltd: BUY | Target: Rs 324 | Stop loss: Rs 269 | Return: 14%
On the weekly chart, a Hammer is visible; which is a bullish reversal candlestick pattern. The decent volume at the reversal candle also confirms the possibility of the upwards trend in the days to come.
In addition, on the daily chart, the price has given falling trend line breakout. Moreover, an ugly double bottom formation is visible on the daily chart.
The momentum indicator, RSI (14) is in bullish crossover and rising on the daily chart. Traders can accumulate the stock in the range of Rs 282-285 for the target of Rs 324 and a stop loss below Rs 269.
Disclaimer: The author is Head of Wealth Management and Financial Planning, Bonanza Portfolio Ltd. The views and investment tips expressed by investment experts 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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