'Bias likely to remain bullish; Voltas among 3 stocks that can return 11-14%'

However, some volatility can’t be ruled out since we have expiry of the September series future and option contracts. From medium-term perspective, as far as the Nifty holds above 11,300, the bias will likely remain bullish and any dip in the prices should be used to create fresh longs.

Here are the top 3 stocks that can give 11-14% return:

Ujjivan Financial Services: Buy | Target: Rs 360 | Stop loss: Rs 290 | Upside: 14 percent

After forming a double bottom pattern around Rs 255 levels, the stock took a sharp bounce and once again managed to surpass its long-term moving averages on daily interval, which was placed around Rs 300.

On the short-term interval, the stock is trading in a rising channel with a formation of higher high and higher bottom pattern. So, traders can accumulate the stock in the range of Rs 315-320 for the upside target of Rs 360 levels, with a stop loss below Rs 290.

Voltas: Buy | Target: Rs 733 | Stop loss: Rs 620 | Upside: 11 percent

The stock has been consistently trading above its short and long-term moving averages on the daily interval, with formation of higher high and higher bottom pattern. Last week , the stock gave fresh breakout above the Rs 645 level with higher volumes after a consolidation of more than three weeks.

We believe that the follow-up buying in to the prices after a breakout can be observed in the coming sessions as well. So, traders can accumulate the stock in the Rs 660-665 range for the upside target of Rs 733 levels, with a stop loss below Rs 620.

Century Textiles & Industries: Buy | Target: Rs 1065 | Stop loss: Rs 890 | Upside: 12 percent

For the last two months, the stock has been consistently trading lower in a downward sloping channel on the daily charts and corrected from Rs 1,050 to Rs 850. Since then, a smart recovery in prices has been observed as the stock has managed to give breakout above the falling trend line of channel and also managed to once again close above its 200-days exponential moving average on the daily interval.

We believe that follow-up buying into the prices after a breakout can once again take the stock towards its recent highs. So, traders can accumulate the stock in the Rs 950-955 range for the upside target of Rs 1,065, with a stop loss below Rs 890.

The author is Senior Technical Analyst at SMC Global Securities Ltd.

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