Indian market remained volatile throughout last week and closed lower on Thursday after rallying for three consecutive weeks in a row.
The Nifty50 failed to hold on to its crucial resistance level of 10,700 as well as its 200-days moving average (DMA) placed around 10,750 on the daily charts.
Technical experts feel that the week is likely to remain volatile due to November F&O expiry, but bulls will be able to take control only if Nifty closes above 10,700-level and 200-DMA.
The Nifty index corrected from its swing high of 10,774 to 10,500 zones. It has been making lower highs, lower lows for the third session and formed a Bearish candle on the daily as well on the weekly scale.
The index is trading below its 50-DEMA and the crucial juncture of 10,650 zones which is also a trend line level by connecting its recent swing lows of 10,020, 10,105, 10,440 and 10,650 zones.
“As long as Nifty remains below 10,650 zones, overall range bound move with limited upside could be seen in the market while on the downside, next major support exists at 10,450 then 10,333 zones,” Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities told Moneycontrol.
“India VIX moved up by 4.41% at 19.16 levels in the last week and higher volatility is keeping its restricted upside. If VIX crosses and holds above 20-21 zones then bears may again attack on the market while bulls require a stability below 17-16 zones to get a smooth ride,” he said.
On the options front, maximum Put OI is placed at 10000 followed by 10500 strikes while maximum Call OI is seen at 10,700 followed by 11,000 strikes.
Here is a list of top 10 short-term trading ideas by experts which could give 4-14% returns in December series:
Analyst: Aditya Agarwal, Head of Technical Research, Way2Wealth Brokers
ZEE Entertainment: Buy around 455-452| LTP: Rs 458| Target: Rs 475/484| Stop Loss: Rs 438| Return 6%
Zee entertainment has been consolidating in a broad range of 455-420 for the last few weeks. However, in Thursday’s trade, the stock broke its stiff resistance zone of 455 and closed above that.
On the daily chart, the stock was facing stiff resistance around its 50-DMA (450 levels) and a close above that shows strength in the counter.
We expect, that stock will continue to see an upward movement on the back of short unwinding and in that optimism it can test 475/585 levels in the short-term. Short-term traders can use any pullback in the counter to initiate long positions with a stop loss placed at Rs 438.
SAIL: Sell around 62-63| LTP: Rs 60.40| Target: Rs 55/52| Stop Loss: Rs 67| Return 14%
In the first week of November, Sail tested its resistance zone of 72 but failed to sustain above that. Since then, the stock is under bear pressure along with other metal stocks and in the last trading session, it closed below its crucial support zone of 62.
On the weekly chart, the stock is continuously making the lower top and lower bottom formations which clearly shows weakness in the counter.
Overall view on Sail remains bearish and any pullback towards 62 can be utilized to initiate short positions with targets of Rs 55/52 and a stop loss placed above 67.
Bosch: Buy around 18900-19000| LTP: Rs 19007| Target 20600| Stop Loss: Rs 18400| Return 8%
Bosch saw a steep rally in the last week of October and made a high of 20500. However, from that level, the stock saw profit booking and in that pessimism, it made the low of 18,465 last week.
Bosch has retraced almost 61.80% of the entire up move (17600-20500) it saw in October and is currently trading near its strong support zone of 18800-18900 levels.
In Thursday’s trade, the stock saw short covering from lower levels and closed almost at day’s high of 19,000. We expect that from current levels, the risk-reward ratio is clearly in favor of buyers and long positions can be initiated with targets of 20,600.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Chambal Fertilisers: Buy| LTP: Rs 151| Target: Rs 167| Stop Loss: Rs 139| Return 10%
This counter appears to have registered a breakout only to initiate a fresh leg of up move from its multi-week consolidation range on relatively higher volumes.
At the lower end of the consolidation, range appears to be a strong support, traders should adopt a two-pronged strategy of buying at market prices and adding further on lower levels around 140.
Hence positional traders can go long for a target of Rs 167. The Stop suggested for the trade is a close below Rs 139.
Jindal Saw: Buy | LTP: Rs 83.70| Target: Rs 90| Stop Loss: Rs 78| Return 7.5%
This counter appears to have posted a short-term bottom, with a price and volume breakout, after retracing around 62 percent of its last leg of the rally from the lows of Rs 71-90.
This positive price action on the back of huge volumes in Thursday’s session might be hinting towards a fresh leg of an upswing.
Hence positional traders should make use of this opportunity and go long for a target of Rs 90 and a stop placed below Rs 78 on a closing basis.
Dabur India: Buy| LTP: Rs 399.85| Target: Rs 460| Stop Loss: Rs 390| Return 15%
The last 4 days price action in this counter is looking quite positive and hence it may be on the verge of a breakout with a short-term bottom in place around Rs 390 levels.
In that scenario, it can be heading towards 460 kind pf levels. However, in between, if the resistance point of Rs 423 proves to be a big hurdle then it will be in need of a fresh breakout above that level.
Hence, positional traders can look for Rs 460 kind of target with a stop below Rs 390 whereas short-term traders should consider booking profits of around Rs 423.
Analyst: Rajesh Palviya, Head Technical & Derivatives Analyst , Axis Securities
Capital First: Buy| LTP: Rs 534| Target: Rs 558| Stop Loss: Rs 508| Return 5%
On the daily chart, the stock price has decisively broken out from its consolidation range of 500-450 levels on a closing basis and has sustained above the same.
This breakout is accompanied with an increase in volumes which supports bullish sentiments ahead. On the weekly chart, the stock price has formed a rounding bottom pattern indicating positive bias.
The weekly and daily strength indicator RSI and the momentum indicator Stochastic both have given positive crossover which supports upside momentum to continue in near term.
The stock price has given a positive crossover from its 50 and 100-day SMA which supports bullish sentiments ahead.
Jindal Saw: Buy| LTP: Rs 83.40| Target: Rs 90| Stop Loss: Rs 78| Return 8%
On the daily chart, the stock price is moving in an up sloping channel. It has bounced back from the support zone and is moving inside the channel on a closing basis.
This bounce back is accompanied with a huge spurt in volumes which supports bullish sentiments ahead. The daily strength indicator RSI and the momentum indicator Stochastic both have given positive crossover from the oversold region which supports upside momentum to continue in near term.
The stock price has given positive crossover from its 20, 50 and 100-day SMA which supports bullish sentiments ahead.
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
Adani Port & SEZ: Buy| Target: Rs 383| Stop Loss: Rs 351| Upside: 4%
Adani Port witnessed a strong upward momentum over one month after making a healthy consolidation from an upper price-band of 399-380 levels towards a low of 300 odd levels.
Post this lower base, the scrip continued to trade on a positive trajectory and this week it made an important breakout from its 200-days moving average placed at 364 levels on closing basis.
Along with strong volume growth, the scrip also formed a bullish candlestick pattern on its weekly price chart.
Further, the momentum indicator favored the current trend with RSI at 68 levels coupled with MACD trading above its Single-Line. We have a buy recommendation for Adani Port which is currently trading at Rs. 368.15.
Kajaria Ceramics: Buy| Target: Rs. 473| Stop-Loss: Rs 426 | Upside: 5%
After remaining under selling regime over the last six months form 52-weeks low of 310 levels, Kajaria Ceramics made a strong reversal trend in the recent period to trade in a positive trajectory.
The stock managed to decisively breakout from its crucial resistance of 100-days EMA placed at Rs 433 levels. It took a strong support at 325-315 levels to reverse a bullish trend with minor consolidation and witnessed a positive volume trajectory in the same period to augur positive trend.
The momentum indicator outlined a positive divergent in price with its RSI at 70 levels coupled with MACD trading above its Signal-Line. We have a buy recommendation for Kajaria Ceramics which is currently trading at Rs 449.80Disclaimer: 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.