Indian markets witnessed a sharp rebound last week but it was not enough to take the index in positive territory. The Nifty50 reclaimed 11,500 on closing basis but slipped 0.6 percent for the week ended September 14.
In absence of any major cues, India market will be dependent on global cues this week as well as the movement of rupee against the US Dollar.
The way Nifty managed to bounce back last week suggests that bulls are back on D-Street and as long as the index stays above 11,500-level there is a higher likelihood of it inching towards 11,600-11,760 levels.
“What we saw in the first half and what happened in the second, was just complete contrast actions of market participants. Things became extremely scary when index tanked below the 11,300-mark. But fortunately for us, currency had some kind of respite, which coincided with Nifty finding a strong support around its important swing low of 11,234.95 (low on August 02, 2018),” Sameet Chavan, Chief Analyst, Technicals, and Derivatives at Angel Broking told Moneycontrol.
“For the coming sessions, 11,603 would be seen as an important resistance; but, we believe that it’s a matter of time; we may see this hurdle getting crossed and the Nifty again heading towards 11,700–11,760 levels,” he said.
Chavan further added that the broad-based recovery always augurs well for a healthy move and hence, one should trade with a positive bias by seeing 11,430–11,380 as an immediate support zone.
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Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Asian Paints: Buy| LTP: Rs 1331| Target: Rs 1390| Stop Loss: Rs 1295| Return 4%
This counter registered a Hammer formation on the weekly charts after retracing 50% of its last leg of the rally from the lows of Rs 1,092 registered in March 2018 to 1490 levels.
Hence, this decent correction of its larger upswing appears to be providing a decent entry point once again. Hence, positional traders should buy into this counter for a target of Rs 1390 with a stop below Rs 1295 on a closing basis
JSW Steel: Buy| LTP: Rs 407| Target: Rs 447| Stop Loss: Rs 387| Return 10%
This counter appears to be in a steady uptrend as it is consistently hitting new lifetime highs week after week.
As this counter appears to be consolidating for the last couple of days in a range of 388 – 414 positional traders should make use of this pause or minor corrective phase to go long in anticipation of this range breakout with a stop below 387 on a closing basis.
An initial target can be kept at Rs 447 whereas based on long-term trend studies a bigger target of 470 can’t be ruled out in near future.
United Spirits: Buy| LTP: Rs 581| Target: Rs 641| Stop Loss: Rs 560| Return 10%
After retracing 80% of its last of the rally from the lows of 548 – 661 this counter registered a Bullish Engulfing formation strengthening the case for either the end of correction at the recent low of 565 or a pullback move.
In case pullback rally materialises, then the initial target is placed around Rs 641 levels. Hence, positional traders are advised to buy into this counter with a stop of Rs 560.
Analyst: Rajesh Palviya- Head, Technical and Derivatives, Axis Securities
Sun Pharma: LTP: 663.45 (Fut)| Target: Rs 700-715| Stop Loss: Rs 620| Return 7-9%
On the monthly chart, the stock has formed a "Double Bottom" - a short-term reversal pattern which signals a shift in the short-term trend reversal to the upside.
This breakout is accompanied with a huge spurt in volumes which supports bullish sentiments ahead. The weekly and monthly strength indicator RSI and the momentum indicator Stochastic both are in the positive terrain which supports upside momentum to continue in the near-term.
The stock is well placed above its 20, 50 and 100 day-SMA which supports bullish sentiments ahead. The stock can be bought in the range of Rs 600-650.
Hindalco: LTP: 246.70 (Sep Fut)| Target: Rs 265| Stop Loss: Rs 228| Return 7%
On the daily chart, the stock has formed an "Inverse Head & Shoulder" - a short-term reversal pattern which signals a shift in the short-term trend reversal to the upside.
The stock price has retested its neckline levels. 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 terrain which supports upside momentum to continue in the near-term. The stock is well placed above its 20, 50 and 100-day SMA which supports bullish sentiments ahead.
Jindal Steel & Power: LTP: Rs 233.50| Target: Rs 245| Stop Loss: Rs 220| Return
On the daily chart, the stock price has formed an "Ascending Triangle" breakout. This breakout is accompanied with a huge spurt in volumes which supports bullish sentiments ahead.
The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in the positive terrain which supports upside momentum to continue in the near-term.
The stock is well placed above its 20, 50 and 100-day SMA which supports the bullish sentiments ahead. The stock can be bought in the range from Rs 230-225.
UPL: Buy| LTP: Rs 736.75| Target: Rs 795| Stop Loss: Rs 709| Return 8%
With the current week's strong gains the stock has decisively broken out from its “downsloping trendline” breakout at Rs 730 levels on closing basis.
This breakout is accompanied with rising volumes which supports the bullish sentiments ahead. The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in the positive terrain which supports upside momentum to continue in the near term.
The stock is well placed above its 20, 50 and 100-day SMA which supports bullish sentiments ahead. The stock can be bought in the range of Rs 735-730.
Godfrey Phillips India: Buy| CMP: Rs 991.20| Target: Rs 1070| Stop Loss: Rs 950| Return 8%
With current week's strong gains the stock has decisively broken out its “Down Sloping Trendline” breakout at 860 levels on the closing basis. The stock price has also formed a rounding bottom pattern which indicates a positive bias in the near-term.
This breakout is accompanied with rising volumes which supports bullish sentiments ahead. The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in the positive terrain which supports upside momentum to continue in the near term.
The stock is well placed above its 20, 50 and 100 day SMA which supports bullish sentiments ahead. The stock can be bought in the range of Rs 985-975.
Analyst: Sameet Chavan, Chief Analyst, Technicals, and Derivatives at Angel Broking
RBL Bank: Buy| LTP: Rs 611.05| Target: Rs 642| Stop Loss: Rs 587| Return 5%
This has been clearly one of the top outperforming stocks within the midcap private banking space. Recently, this stock managed to clock new highs despite some of its peers lying around their 52-week low.
The higher degree time frame charts are extremely strong and hence, recent correction in the stock can be interpreted as a profit booking move.
In this course of action, the stock prices managed to find support around its previous breakout points and eventually, attracted a strong buying interest; hinting towards a possibility of resuming its larger degree uptrend.
Hence, one can look to go long for a target of Rs.642 in coming days. The stop loss can be fixed at Rs.587.
BPCL: Buy| LTP: Rs 354.50| Target: Rs 394| Stop Loss: Rs 323| Return 11%
From the beginning of this calendar year, all OMC stocks have been struggling to a great extent. Now, after undergoing some stressful time with correction of nearly 25-30% from record highs, we can see some early signs of revival.
At this juncture, we like ‘BPCL’ from this pocket. There are multiple technical observations are being witnessed due to last week’s price action. Firstly, a copybook ‘Bullish Island Reversal’ pattern on the daily chart, which is very seldom to see.
Due to this price development, the weekly chart now depicts a ‘Dragonfly Doji’ pattern precisely at the ‘200 SMA’. Considering all these evidence, we would stick our neck out and say that space has bottomed out (at least for a while) and they are now poised for a strong relief move.
Hence, one can look to go long around Rs.348 for a positional target of Rs.394 in coming weeks. The stop loss can be placed at Rs.323.
Vedanta: Buy| LTP: Rs 235.50| Target: Rs 265| Stop Loss: Rs 217| Return 12%
The ‘Metal’ has been an interesting play of late. We did see some kind of resilience from this space in last week’s sharp correction. They did not fall much and in fact, recovered quite sharply to show some encouraging signs.
From this basket, ‘Vedanta’ seems to be a better choice considering its close on Friday. The stock has been consolidating since the last couple of months and on Friday, prices finally managed to close above its recent hurdle of 234.
Thus, it offers a better trade set up at current levels. One can look to go long around for a positional target of Rs.265 in coming weeks. The stop loss can be placed at Rs.217.
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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