Jayant Manglik
Religare Broking
The market ended higher for the sixth successive week amidst volatility, thanks to favourable local cues. But, it lost momentum on Monday.
We witnessed rotational buying across the board in the passing week, which helped the index to maintain its upside momentum.
The market looks a bit stretched to us at the current levels and thus we suggest limiting leveraged positions and focus on specific stocks.
Having said that, we still maintain our positive stance till the Nifty holds above the 11,500-mark. On the sectoral front, we continue to believe Auto, Pharma and Banking counters should be preferred over others for short-term buying.
Here is a list of top five stocks which could give 5-7% return in next 1 month:
Century Textiles & Industries: Buy| LTP: Rs 970| Target: Rs 1035| Stop-Loss: Rs 935| Return: 6.7%
Century Textiles is witnessing a rebound after eight months of corrective phase and is likely to see a fresh resistance breakout in the near future.
The chart patterns along with the indications from the confirmation indicators are also pointing towards a strong surge ahead. We advise traders to create fresh longs in the range of Rs 955-965. It closed at Rs 969.05 on September 3, 2018.
Grasim Industries: Buy| LTP: Rs 1064.95| Target: Rs 1140| Stop-Loss: Rs 1032| Return: 7%
After a decent correction from its record high, Grasim has swiftly rebounded of late after testing its support zone placed at 100-EMA on the weekly chart.
Currently, it is hovering in a narrow range near its support zone of (200/100/50) EMA’s on the daily chart, offering a fresh buying opportunity.
We feel traders shouldn’t miss this opportunity and accumulate fresh longs in the range of Rs 1055-1065. It closed at Rs 1064.95 on September 3, 2018.
Arvind: Sell Futures| LTP Future: Rs 402| Target: 382| Stop-Loss: 415| Return: 5%
Arvind has been consolidating in a broader range for the last eight months, after making a record high in January 2018.
Currently, it is trading in the middle of the range and formed a fresh shorting pivot. We advise traders to use any technical bounce to go short in the given range Rs 405-407. It closed at Rs 402 on September 3, 2018.
Disclaimer: The author is President, Religare Broking. 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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