Nifty index futures continue to trade choppy within a broad trading range. A close above 10,870-10,900 levels will trigger a breakout from this range taking the index higher to 11,095-11,280 levels.
On the other hand, a close below 10,550 will trigger a downtrend, dragging it lower to levels of 10,400-10,300 levels.
The relative strength index (RSI) is also oscillating between 40 and 60, which indicates sideways consolidation. The volatility index is trading at the lower end of the range, showing lack of any trend.
Here is a list of top 3 stocks that could offer 5-17% return in the next 3-4 weeks:
Alembic Pharmaceuticals Limited: Buy| Target: Rs 567-580| Stop Loss: Rs 500| Return 7-9%
On the daily chart, Alembic Pharmaceuticals Ltd. (APLLTD) has broken out from a pennant pattern (as indicated on chart) indicating bullishness. A sustained trade above Rs 540 with healthy volumes can extend the uptrend taking it to levels of Rs 567-580.
On the weekly chart, it is approaching upper end of the falling wedge pattern placed at Rs 570, a breakout from the pattern can trigger major trend reversal in favour of the bulls.
Moreover, RSI has witnessed a range shift entering in the bull zone closing above the 60-level affirming strength in the stock. The stock may be bought in the range of Rs 530-535 for a target of Rs 567-580, and keep a stop loss below Rs 500.
Just Dial Ltd: Buy| Target: 630-665| Stop Loss: Rs 520| Return 11-17%
On the daily chart, Just Dial Ltd. (JUSTDIAL) is on the verge of a breakout from a Triangle pattern resuming the uptrend. Further, volume picked up in the breakout affirming the strength.
Further, on the weekly chart, it has turned upwards after taking support at the 50% indicating higher levels in the coming trading sessions.
RSI has turned upwards after forming a double bottom suggesting extended bullishness in the coming trading sessions. The stock may be bought in the range of Rs 565-575 for the target of Rs 630-665, keeping a stop loss below Rs 520.
Engineers India Ltd: Buy| Target: Rs 131-140| Stop Loss: Rs 119| Return 5-12%
On the daily chart, Engineers India Ltd. (ENGINERSIN) is on the verge of a breakout from a wedge pattern suggesting bullishness building up in the stock.
Further, the stock has taken a support at the 127% Fibonacci retracement level and turned upwards after affirming bullishness building up.
The RSI is in the bull zone suggesting higher levels in the coming trading sessions. The stock may be bought in the range of Rs 124-126 for targets of Rs 131-140, keeping a stop loss below Rs 119.Disclaimer: The author Technical Analyst at YES Securities (I) 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.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.