Indian market hit fresh record highs in the week gone by but it failed to climb above 13,000 levels which acted as a stiff resistance in the recent up move. The Nifty50 hit a record high of 12,963 before reversing gains.
Investors have nothing to worry about as the trend is still intact and dips towards the support of 12,800-12,700 can be bought while a close below 12680 could lead to selling pressure.
On the options front, maximum Put OI is at 12000 followed by 12500 strikes while maximum Call OI is at 13000 followed by 13500 strikes.
Marginal Call writing in 13200 and 12800 strikes was seen while Put writing was seen at 12800 then 12500 strike. Options data suggests a wider trading range in between 12500 to 13000 zones ahead of November F&O expiry on Thursday.
“The level of 13,000-13,090 remains the key zone for the bullish momentum to resume again towards 13,570 while on the flipside supports are clearly place at 12,680 & 12,510 respectively,” Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities told Moneycontrol.
“In case if the counter-trend witness signs of fresh Impulse then the lower band could stretch further towards 12380-12050 respectively. Options data to indicate a relatively wider range of 12000-13500 with its mid-point still placed around 12800, with progression in time this band is expected to contract relatively faster,” he said.
Uttekar further added that the expiry week would be followed up a long weekend & truncated week hence it’s likely that traders may refrain from carrying forward any aggressive positions on either side.
Here is a list of top 10 trading ideas by experts for the next 3-4 weeks:
Expert: Manish Srivastava, Senior Technical Analyst (Equity & Currency) at Rudra Shares & Stock Brokers
Godrej Consumer Products: Buy | CMP: Rs 699 | Target: Rs 760 | Stop Loss: Rs 670 | Upside 8.5%
The stock has broken out of an Inverse Head and Shoulder pattern. After a mild consolidation near its 20-day exponential moving average, bulls are showing a sign of strength.
The prices have started trading above the upper Bollinger band along with decent volumes. The momentum indicators have started trading in a bullish zone and prices are trading above all major short-term and medium-term moving averages.
The medium-term trend is also favouring the bulls as the bullish candlestick pattern has been witnessed on the week ending November 6, 2020.
The pattern was supported by follow up buying and prices have started trading above 20 periods moving average. Trades can initiate buying positions in the counter at the current market price (CMP) and on any dip till Rs 690 with the short term perspective.
State Bank of India: Buy | CMP: Rs 242.75 | Target: Rs 278 | Stop Loss: Rs 228 | Upside 15%
The stock has retraced mildly after a recent breakout. It has been trading in a sideways zone for the last few weeks which now seems to be getting over and bulls are likely to have an upper hand in the short term.
The Bearish Engulfing pattern formed on August 31, 2020, has been acting as stiff resistance for the stock in the last few months and the same is likely to act as support after a recent breakout.
Momentum indicators are trading in a bullish zone and rising average directional Index (ADX) suggesting that trending move can be expected in the short term.
As there is no major overhead resistance visible on the chart, the rally is expected to be sharp. Traders can initiate buying positions at CMP and on any dip till RS 236 for the short term gain.
Bata India: Buy | CMP: Rs 1,476.90 | Target: Rs 1,653 | Stop Loss: Rs 1,415 | Upside 12%
The consolidation in the stock has taken the shape of a rounding bottom formation and a breakout of the pattern has been witnessed recently. The bullish curve of a short term moving averages ribbon after a recent convergence suggests that an up move is on the card. Momentum indicators are trading in a bullish zone and the breakout is supported by adequate volumes.
The prices are tagging the upper Bollinger band indicates the volatility breakout has also taken place in the counter and the road ahead for the bulls looks quite smooth. Traders can buy the stock at current levels for the short term gain.
Expert: Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors Ltd.
ITC Limited: Buy | LTP: Rs 191| Buy Around: Rs 190 |Target Rs 220 | Stop Loss Rs 174 | Upside 15%
After a prolonged downtrend, the stock is showing a sign of life as stock gave falling trend line breakout on upside at lower levels which suggests confirmation of reversal is round the corner.
The daily RSI is bouncing back from the important support level along with positive crossover in stochastic and other momentum indicators suggesting a short term pullback on the upside in the stock in the coming days. Traders can initiate buying around 190 levels for the target of 220 a with a stop loss of 174 mark.
Bharti Airtel Ltd: Buy| LTP: Rs 483| Buy Around: Rs 480|Target: Rs 535| Stop Loss: Rs 448 | Upside 11%
The stock is expected to give a head and shoulders breakout on the daily chart with decent volume. Bullish crossover in Stochastic and MACD are looking supportive for this upside breakout. Positive crossover of 20 & 50 DMA's indicating strength.
Key support lies at 450 levels until this break decisively, a long position can be held. Investors can take entry around 480 with SL of 450 on a closing basis for the target of 535.
Sumitomo Chemical India Ltd: Buy| LTP: Rs 281| Buy Around: Rs 280 |Target Rs 310| Stop Loss Rs 260 | Upside 10%
Formation of lower shadow near the foot of the weekly trend line indicating that declines are being bought and momentum could reverse. After retesting of strong support, scrip has been forming higher highs and lows from last week.
Daily MACD showing positive crossover at lower reference line suggest pullback. Sustainability above significant moving averages provides key support at lower levels. Once stock will give a decisive close above 285, then it will ready to move on the upside till 320 level; however, this view will invalidate, if stock gives a close below 260 marks.
Expert: Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities
TCS: Buy| LTP: Rs 2659| Target: Rs 2830| Stop Loss: Rs 2580| Upside 6%
TCS has maintained its secular up move & formed yet other bullish hammer formation on the weekly scale. The momentum from the breakout from its 9 quarters of consolidation is yet to witness any signs of weakness.
On its weekly scale, we are witnessing yet another bullish pennant formation while the occurrence of consecutive bullish hammers is a good sign of strength.
Overall, we expect the stock to scale towards Rs 3060 level while traders could build aggressive longs above 2700 with a stop below 2580 for a short term target up to 2830.
Britannia Industries: Buy| LTP: Rs 3549| Target: Rs 3760| Stop Loss: Rs 3420| Upside 6%
The last three weeks consolidation has been healthy for the stock as it maintained itself well above its 200-DEMA zone placed around 3460.
On the broader scale, the stock has been underperforming but it has formed yet another pin bar formation on its weekly scale along with its daily RSI now trending up above 50 & also above its prior swing highs which is an early sign of recovery.
Trading longs could be considered with a stop below 3420 for an initial up move towards 3760 in the coming weeks ahead.
Garden Reach Shipbuilders: Buy| LTP: Rs 199| Target: Rs 225| Stop Loss: Rs 177| Upside 27%
On its daily scale, the stock has formed an Engulfing Bullish formation. Its recent rebound from the 200-Days EMA zone has been well supported with volumes while its trend strength indicators have witnessed a breakout above their respective key momentum gauging thresholds.
On the long-term scale, this looks like the beginning of the final shoulder formation of its ongoing bullish/Inverse Head & Shoulder formation.
The stock should be accumulated with a stop below 177 for an initial target up to 225 followed by its pattern target up to 265 which could be witnessed in the next 1-2 months.
ICICI Prudential Life: Buy| LTP: Rs 453| Target: Rs 510| Stop Loss: Rs 430| Upside 12%
A breakout from the falling wedge formation on its weekly scale is now supported with a strong follow-through price action. The latest Bullish Belt Hold formation on its weekly scale is backed by a positive crossover of its short term averages 5 & 20 WEMA along with its trend strength indicators trending well in their bull zone territory.
The V-shaped recovery resulted in a firm breakout above its swing resistance zone of 440. Trading longs could still be considered with a stop below 430 for a target up to 510.Disclaimer
: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.