Nifty ended the past week on a positive note despite volatility. The index touched an intraday low of 10,628 on January 4 and a high of 10,870 on January 9.
Nifty50 tried to make multiple attempts to break out of the range but the follow up buying which was needed was clearly missing. It consolidated in a slender range of merely 140 points, which is way below its average weekly range.
For the index to move higher, Nifty50 has to climb above 10,870-10,950, while on the downside, a break below 10,733 could result in further profit booking.
“Market participants were keenly awaiting a decisive breakout from this range; but every attempt (on both sides) eventually turned unsuccessful. Technically speaking, prices have been vacillating within the boundaries of a ‘Triangle’ as well as the ‘Diamond’ pattern and we are very close to the apex point,” Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking told Moneycontrol.
“Considering the overall development in the broader market as well as the heavyweight banking basket, our inclination is more on the positive side. A move beyond the higher end of 10870 would unfold the next leg of the rally towards 10970 – 11150 levels. However, in case of a breach below 10733, this would certainly not bode well for the bulls,” he said.
In such scenarios, Chavan advises investors that one should wait for a confirmation to place aggressive bets. Until then a prudent strategy would be to focus on individual stocks by following a proper exit strategy.
Here is a list of top 10 short term trading ideas by experts which could give 4-13% return in the next one month:
Analyst: Rajesh Palviya, Head – Technical & Derivatives Analyst, Axis Securities.
Divi's Laboratories: Buy| LTP: 1504| Target: Rs 1540-1570| Stop Loss: Rs 1467| Return 4%
On the daily chart, the stock price has decisively broken out its “Downsloping Trendline” at 1485 levels on a closing basis and sustaining above the same. This breakout is accompanied by an increase in volumes which supports bullish sentiments ahead.
The weekly, as well as daily strength indicator RSI and the momentum indicator Stochastic both, have turned positive which supports upside momentum to continue in the near-term.
The stock price has given positive crossover from its 20 and 50 day SMA which indicates positive bias.
ICICI Prudential Life Insurance: Buy| LTP: Rs 355| Target: Rs 368-375| Stop Loss: Rs 340| Return 5.6%
On the weekly chart stock price has decisively broken out its “Downsloping Trendline” at 335 levels on a closing basis and sustaining above the same. This breakout is accompanied by an increase in volumes which supports bullish sentiments ahead.
The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in positive territory which supports upside momentum to continue in the near term. The stock price has given positive crossover from its 100 day SMA which indicates positive bias.
The stock price is sustaining well above its 20, 50 and 100 day SMA which supports bullish sentiments ahead.
Manav Chopra, Head Research- Equity, Indiabulls Ventures Ltd
ITC: Buy| LTP: Rs 295| Target: Rs 320-335| Stop Loss: Rs 272| Return 13%
The recent decline tested the rising trend line drawn from the March’18 lows and the prices formed a Bullish hammer candlestick which further validates the bullish structure.
The RSI has confirmed a breakout and positive reversal which indicates a new high in making and likely stock to exceed its July’18 peak.
Amara Raja Batteries: Buy| LTP: Rs 756| Target: Rs 850-875 Stop Loss: Rs 700| Return 15%
The counter has formed a bullish candlestick pattern at the support zone and the prices has now exceeded its previous week’s high which indicates that a short-term trend reversal is on the cards.
The prices have been oscillating in the range of Rs 700-880 and are likely to see a bounce from the current levels.
Muthoot Finance: Buy| LTP: Rs 536| Target: Rs 570-590| Stop Loss: Rs 510| Return 10%
The prices recently observed a higher high formation which confirms the continuation of the uptrend. The RSI is in a bullish momentum which indicates more upside.
Analyst: Vinay Rajani, Senior Technical Analyst at HDFC Securities Ltd
Axis Bank: Buy| CMP: 666| Target: Rs 704| Stop Loss: Rs 638| Return 5%
The stock witnessed a Symmetrical Triangle breakout on the daily charts. It formed higher tops and higher bottoms on the daily and weekly charts. The stock price has been trading above its 20, 50, 100 and 200-DMA.
Considering the technical evidence discussed above, we recommend buying the stock at CMP target of 704 and keeping a stop loss at 638 on a closing basis.
Titan Company: Buy| CMP: 959.50| Target: Rs 1020| Stop Loss: Rs 925| Return 6%
The stock price has given a breakout from the bullish inverse head and shoulder pattern on the weekly charts. The stock price is placed above all important moving average parameters.
Higher tops and higher bottoms on the weekly and monthly charts. Indicators and Oscillators setup is bullish on medium to long term charts.
Considering the technical evidence discussed above, we recommend buying the stock at CMP target of 1020, keeping a stop loss at 925 on a closing basis.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Mahindra & Mahindra: Buy| LTP: Rs 728| Target: Rs 790| Stop Loss: Rs 710| Return 8.5%
This counter appears to be in a multi-week consolidation mode and moving in a large range of 800 – 700 levels. Interestingly, after a recent cut from the highs of 810, this counter appears to be moving in a narrow range of 712 – 730 for last six sessions hinting at a possible short term bottom.
In that case, if it starts rallying, ultimately it should test the upper end of the larger trading range placed around 800.
As the risk-reward ratios will be favourable, positional traders are advised to buy into this counter for a target of 790 and a stop below 710 on a closing basis.
Bosch: Buy| LTP: Rs 19514| Target: Rs 20500| Stop Loss: Rs 19,150| Return 5%
After the recent upmove from the lows of 18300 – 20,000, this counter appears to be moving in an 800-point range between 20,000-19,200 range for almost last 17 sessions.
Hence, one can buy into this counter in anticipation of a breakout above 20,000. In that scenario, the initial target can be placed at 20500 levels. A stop suggested for the trade is a close below 19150.
Welspun Corp: Buy| LTP: Rs 137| Target: Rs 154| Stop Loss: Rs 129| Return 12%
This counter appears to have posted a short-term bottom around Rs 130 levels as it is moving in a narrow range for the last 6 sessions after retracing 62% of its rally from the lows of 116 – 164.
Hence, on resuming the upmove from the said base it can eventually test its interim top of 160 levels. Hence, positional trades should buy into this counter for a target of 154 with a stop below 129 on a closing basis.
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.
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