Rohit Singre Bonanza Portfolio
The Nifty index closed the day ahead of the crucial Budget day at 11,029.90, with minimal loss of 21.95 after a volatile session on Wednesday, forming a Doji candle pattern on the daily chart.
The index is in consolidation mood before the big event. We have witnessed index trading in a tight range of 11,000-11,150, in Wednesday’s session. The Nifty bounced back from the day’s low and closed above the crucial 11,000 mark which suggests that index will trade in a strong range of 11,000-11,150.
We expect a strong move on either side if the index manages to break above or below 11,150-11,000 levels. On the options front, highest open interest still at 10500 PE followed by at 11000 PE which will act as strong support for February month and on the higher side 11500 CE has highest open interest followed by 12000 CE which will act as an immediate hurdle in February month.
We expect volatility to extend further. The index has a bunch of supports around 10,980-10,880 holding same levels. We expect the index to touch fresh highs and on higher side 11,130-11,180 would be strong hurdles.
For the trading purpose, the trader can use every dip as buying opportunity for the targets of 11,130-11,180 with keeping a stop loss below 10,880.
Here is a list of three stocks which can give up to 14% return in short term:
TV18 Broadcast: BUY | Target Rs 70| Stop Loss 57| Upside 13%
The stock is trading in a super uptrend as we have witnessed a healthy correction after every rise and the recent correction from 66.50 levels can be considered as a healthy correction again.
On Wednesday’s session, the stock moved up to 6 percent in an intraday basis with a strong volume hinting that the stock may continue its overall uptrend.
On the daily charts, it seems that the stock has broken from its bullish flag pattern with good volume which is bullish in nature.
Considering technical setup, one can initiate a buy call on the stock at current levels to any dip near 59.50 for the target of 70 with a stop loss below 57 on a closing basis.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
PVR: BUY | Target Rs 1600 | Stop Loss Rs 1360| Upside 10%
The stock formed a base near 1280 levels after correcting from the previous high of 1650 and we have seen a good pullback from 1280 which suggest strong support is formed near 1280 levels.
On the daily chart, the stock broke its Cup and Handle pattern recently with good volume which is bullish in nature suggest stock ready to trade higher.
The stock breached all the strong DMA’s like 200-100-50 that shows strength is back in stock.
The momentum traders can take a position in the counter at current levels to any dip near 1400 for the targets of 1600 and a stop out levels can be kept below 1360 on a closing basis.
JM Financial: BUY | Target Rs 185 | Stop Loss Rs 150 | Upside 14%
The stock is trading in a strong uptrend since long and the recent correction from the top can be considered as a healthy correction. The stock has taken support at 68.20% retracement zone from April month low.
After consolidating at strong support for the past two months, the stock has recently given small breakout above the range with good volume and again the stock has taken support from the same levels which suggest that it is all set to continue its overall uptrend soon.
Traders can initiate a long call on the stock at current levels to any dip near 158 for the target of 185. A stop loss can be kept below 150 on a closing basis.
Disclaimer: The author is Senior Research Analyst, Bonanza Portfolio 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
