The level of 10,750 would prove a stiff a resistance and if we can stay above these levels, this market could go back to 11,350 and thereafter to its high of 11,760, says Manish Hathiramani of manishhathiramani.com.
On the weekly chart, Nifty has taken good support at 10,000. This level is a tad shy of its previous intermediate low of 9,951 which was made on March 23, 2018. It has now become a very strong base for the market and should we puncture it, we may see a fall to the levels of 9,000.
The level of 10,750 would prove a stiff a resistance and if we can stay above these levels, this market could go back to 11,350 and thereafter to its high of 11,760. Either way, we have large moves coming for this market.
Here are the three top stock trading ideas until Diwali 2019 which can give good returns:
Aurobindo Pharma: Buy | Target: Rs 970 | Stop loss: Rs 585 | Return: 24 percent
The level of Rs 530-550 is a good base for this stock. We also notice an inclining volume pattern on the upside which is a bullish signal. The overall structure looks robust for this stock to move higher to Rs 850 and then towards Rs 970.
Aurobindo Pharma recently tested its short-term support of Rs 710 and has bounced smartly from those levels.
Ambuja Cements: Buy | Target: Rs 250 | Stop loss: Rs 185 | Return: 21 percent
The stock is currently trading above its daily and weekly resistance levels of about Rs 200. If we can sustain this momentum, Ambuja Cements can achieve a target of Rs 250. The risk to reward ratio is also very promising.
Axis Bank: Buy | Target: Rs 750 | Stop loss: Rs 550 | Return: 20 percent
This would be among the few banking stocks which seem to be showing nascent stages of a breakout. If the stock continues to trade above Rs 615, it is ideally above the weekly resistance levels which would be a good sign for the stock to be in an impulsive bullish trend and continue its trend northwards.
The author is the proprietary trader, technical analyst and owner of manishhathiramani.com.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.