Moneycontrol
Last Updated : Nov 05, 2018 02:14 PM IST | Source: Moneycontrol.com

HDFC, Indiabulls Real Estate among top 10 short-term trading ideas

The equity market is expected to witness positive momentum for a couple of sessions ahead of festive season, experts said.

Kshitij Anand @kshanand
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Nifty50 rose more than 500 points, or little over 5 percent for the week ended November 2, but the gains might remain capped this week as the market will remain shut on Wednesday and Thursday for public holidays.

The market will remain closed on Thursday on account of Balipratipada and will open for an hour-long trade, also called Muhurat trading, on Wednesday evening for Laxmi Pujan.

“Coming week is truncated, but important with series of events within and outside the country. The week will begin with the global blockade against Iran followed by US legislative elections apart from the ongoing corporate earnings in India,” Rahul Sharma of Equity99 told Moneycontrol.

“While the mood will be cheerful due to Diwali, these events will dictate the market movement and investors should follow a cautious approach during the three days trading week,” he said.

After a strong rally seen in Indian markets last week, we saw some cool off in India VIX. The volatility index fell 5 percent to 18.23 on November 2, which indicates positive sentiment in the market. However, experts feel a strong short-term reversal is only possible when it moves down to 16-levels.

On the earnings front, more than 400 companies will declare their quarterly earnings, including State Bank of India, Cipla, Power Grid Corporation of India, Bosch, Titan Company, GAIL India, PNB Housing Finance, Exide Industries, and Amara Raja Batteries.

On the technical front, the index decisively surpassed its critical hurdle of 10,450 and closed the past week a tad above 10,550. However, it is still trading below its 200-day Exponential Moving Average (EVA) placed around 10,700 levels on the daily chart, which may act as critical resistance in coming sessions.

"The weekly RSI on chart stood at 51 levels up from earlier level, but MACD continued to trade below its signal line. Given a strong breakout from important levels, the upper resistance for the index is placed at 10,700-levels with immediate support at 10,405 levels," Dinesh Rohira, Founder & CEO, 5nance.com told Moneycontrol.

"The equity market is expected to witness positive momentum for a couple of sessions ahead of festive season," he said.

Here is a list of ten stock ideas that could give 5-14% return in the next 1 month:

Analyst: Dinesh Rohira, Founder & CEO, 5nance.com

Hindalco Industries: Buy | Target: Rs 253 | Stop-Loss: Rs 238 | Upside: 5%

Hindalco remained in an uptrend trajectory during the last week after trading in a range-bound level over the last one month. It made a correction from price-band of Rs 253 levels towards a low of Rs 216, down by about 14 percent before initiating the current rally trend.

It managed to break out from its 200-day level placed at Rs 234 levels coupled with strong volume growth during past sessions and thus indicating a buying sentiment at the current level.

The momentum indicator outlined a positive trend at the current level with RSI at 57 levels gradually moving upward, while MACD is likely to make a bullish crossover in the coming session to trade above its signal line.

Analyst: Rajesh Palviya, Head – Technical & Derivatives Analyst, Axis Securities Ltd

HDFC: Buy | LTP: Rs 1,820 | Target: Rs 1,910-1,930 | Stop Loss: Rs 1,739 | Upside 6-7%

The stock price has decisively broken out its “Down sloping Channel” at Rs 1,740 levels on the weekly chart. This breakout is accompanied with an increase in volumes which supports the bullish sentiments ahead.

On the daily chart, the stock price has broken from its crucial resistance of Rs 1,780 levels which indicates strength ahead. The weekly strength indicator RSI and the momentum indicator Stochastic both have given positive crossover which supports bullish sentiments in short to medium term.

The stock price has given positive crossover from its 50-day SMA which supports bullish sentiments ahead.

Sterlite Technologies: Buy | LTP: Rs 374.60 | Target: Rs 390-400 | Stop Loss: Rs 354 | Upside: 6-9%

On the weekly chart, the stock price has decisively broken out from its consolidation range of Rs 370-270 levels on a closing basis and sustaining above the same. This breakout is accompanied with a huge spurt in volumes which supports bullish sentiments ahead.

On the daily as well as on a weekly chart, stock continues to scale upward forming higher Top and higher bottom formation indicating sustained uptrend.

The weekly strength indicator RSI and the momentum indicator Stochastic both are in positive terrain which supports upside momentum to continue in the near-term. The stock is well placed above its 50, 100 and 200-day SMA which supports bullish sentiments ahead.

Raymond: Buy| LTP: Rs 759 | Target: Rs 790-805 | Stop Loss: Rs 729| Upside: 5-7%

With current week's strong gains stock price has decisively broken out its “Downsloping Trendline” at Rs 693 levels on the weekly chart. This breakout is accompanied with a huge spurt in volumes which supports bullish sentiments ahead.

On the weekly chart, the stock has formed a rounding bottom pattern at lower levels indicating positive bias. The weekly strength indicator RSI and the momentum indicator Stochastic both are in positive terrain which supports upside momentum to continue in the near-term. The stock is well placed above its 20, 50 day SMA which supports bullish sentiments ahead.

Analyst: Aditya Agarwal, Head of Technical Research, Way2Wealth Brokers

Ceat: Buy around Rs 1,170-1,160 | LTP: Rs 1,181.75 | Target: Rs 1,260/1,290 | Stop Loss: Rs 1,110 | Return: 9.2%

After a sharp correction from Rs 1,450 levels to Rs 1,000, Ceat has seen a good consolidation at lower levels. Last week, the stock saw a sharp short covering move followed by fresh long accumulation in the last 2 trading session.

In Friday’s trade, the stock has given a breakout above its resistance zone of Rs 1,160 levels and has managed to close above that. Hence, we recommend traders to initiate fresh long positions with targets of Rs 1,260/1,290.

Vedanta: Buy around Rs 210-213 | LTP: Rs 225 | Target: Rs 235/248 | Stop Loss: Rs 194 | Return: 10%

The stock has been consolidating in a narrow band of Rs 195-220 for the last few weeks. In Friday’s session, aggressive long positions were added in the counter from the lower levels.

It has a strong support around Rs 195 levels which also coincides with its 200-week moving average. From the current levels, the risk to reward ratio is in favor of buyers and fresh long positions can be initiated with targets of Rs 235/248 and a stop loss placed below Rs 194.

Marico: Sell around Rs 315-320 | LTP: Rs 337.85 | Target: Rs 300/290 | Stop Loss: Rs 332 | Return: 14%

On a larger degree chart, Marico gave a breakout below Rs 330 level and saw a sharp correction that dragged it below Rs 300 levels last week.

However, short covering helped the stock to recover some of the early losses but on the higher side, it is still facing stiff resistance around its 200-DMA which comes around Rs 330.

In Friday’s trade, fresh short accumulation was seen in Marico which indicate fresh correction in the counter. The overall outlook in Marico remains bearish and any pullback towards Rs 320 can be utilized to initiate fresh shorts with targets Rs 300/290 and stop loss placed above Rs 332.

Analyst: Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

Indiabulls Real Estate: Buy | LTP: Rs 82.55 | Target: Rs 94 | Stop Loss: Rs 69 | Return: 14%

This counter appears to be in the strong grip of bulls, at least in the short run as it registered a Marubozu formation on the weekly charts. If it continues to maintain the same strength then in no time it can test its interim top of Rs 98.

Hence, positional traders shall adopt a two-pronged strategy of buying now and adding further around Rs 74 on correction and look for a target of Rs 94. A stop suggested for this trade is below Rs 69 on a closing basis.

HDFC Standard Life: Buy | LTP: Rs 386.60 | Target: Rs 410 | Stop Loss: Rs 369 | Return 6%

This counter appears to have posted a decent bottom around Rs 355 after retracing around 80 percent of its entire rally from the debut day low of Rs 307-548.

It also closed above the trading range between Rs 385–355 levels and is expected to head towards its next target at Rs 414. Hence, positional traders should buy for a target of Rs 410 and a stop below Rs 369 0on closing basis.

Hero MotoCorp: Buy | LTP: Rs 2,892 | Target: Rs 3,200 | Stop Loss: Rs 2,790 | Upside: 10%

This counter posted a strong bottom around 2700 levels and it appears to have picked up momentum as it opened with a strong gap up in Friday’s session.

The momentum shall get further cemented going forward which would pave the way for a bigger breakout if it manages to close above 3000 levels.

Hence, in anticipation of such a breakout positional traders should buy now and on declines close to Rs 2800 levels for a target Rs 3200 and a stop below 2,790 on a closing basis.

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.
First Published on Nov 5, 2018 02:14 pm
Loading...
Sections
Follow us on
Available On