Aditya Agarwala YES Securities
The Nifty extended its winning streak for the third day in a row to close at a 22-week high. It also happened to surpass its intermediate high formed on the Karnataka election result date: 10,930. It has broken out of a Triangle pattern consolidation, triggering fresh start to the bull trend. A sustained move above 10,930 can extend the current upmove to 11,100-11,245 levels.
Moreover, it has now formed a higher high and a higher low affirming that the bull trend is still intact. On the downside, supports are placed at 10,830-10,720 levels. The relative strength index (RSI) has also crossed its previous highs and has moved above the 60-levels, affirming bullishness building up in the markets.
Here is a list of 3 midcaps that could offer 6-15% returns in the next 3-4 weeks:
AIA Engineering: Buy| CMP: Rs 1610| Target: Rs 1750-1855| Stop Loss: Rs 1500| Return 9-15%
On the weekly chart, AIA Engineering Ltd. (AIAENG) is on the verge of a breakout from an Ascending Triangle pattern (as indicated on chart) neckline placed at Rs 1,645. The breakout above Rs 1645 with healthy volumes can resume the uptrend taking it to levels of Rs 1,750-1,855.
On the daily chart, it has broken out from a Cup and Handle pattern affirming bullishness dominant in the stock. Moreover, RSI turned upwards after taking support at the lower end of the bull zone i.e. 40 level suggesting higher levels in the coming trading sessions.
The stock may be bought in the range of Rs 1,605-1,615 for a target of Rs 1,750-1,855and a stop loss below Rs 1,500.
Relaxo Footwears: Buy| CMP: Rs 725| Target: Rs 775-800| Stop Loss: Rs 680| Return 6-10%
On the daily chart, Relaxo Footwears Ltd. (RELAXO) is on the verge of a breakout from an Ascending Triangle pattern. A sustained trade above Rs 740 will trigger a breakout which can extend the uptrend.
Further, on the weekly chart, it continues to form higher highs and higher lows affirming strong bullishness dominant in the stock.
The RSI has turned upwards after forming a double bottom suggesting extended bullishness in the coming trading sessions. The stock may be bought in the range of Rs 723-727 for a target of Rs 775-800, and a stop loss below Rs 680.
LIC Housing Finance Ltd: Buy| CMP: Rs 496| Target: Rs 540-560| Stop Loss: Rs 465| Return 9-13%
On the daily chart, LIC Housing Finance Ltd. (LICHSGFIN) is on the verge of a breakout from a channel pattern suggesting bullishness building up in the stock.
Further, the stock has broken out from wedge pattern triggering a resumption of bull trend. The RSI has turned upwards after forming a positive divergence indicating that the downtrend is losing steam.
The stock may be bought in the range of Rs 494-498 for targets of Rs 540-560, and a stop loss below Rs 465.
Disclaimer: The author Technical Analyst at 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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