Shitij Gandhi
After ending last week with minor losses, Indian markets once again came under pressure this week as the tug of war between bulls and bears continued on the back of mixed global and domestic factors.
From derivative front 10,900 and 11,000 Put strike witnessed marginal OI addition while on higher side 11,100 Call strike holds maximum OI in this week (August 22) expiry contract.
Nifty is forming a higher high and higher bottom pattern on a shorter time frame and trying to consolidate within a broader range of 10,900-11,150.
As far as Nifty is stuck in this range, some more consolidation cannot be ruled out in upcoming sessions while any decisive move beyond the range will only decide further momentum into the prices on a short term. However, the broader trend will be bearish as far as Nifty holds below 11,250.
Here are the top 3 stock ideas that can give good returns:
Apollo Hospitals Enterprises: Buy | Target: Rs 1,599 | Stop loss: Rs 1,350 | Upside: 11 percent
The stock has been trading in a bullish territory on broader charts and after consolidating in a range of Rs 1,290-1,400 for more than nine weeks, it has given a fresh breakout this week along with higher volumes. Moreover, the breakout above the Bullish Flag pattern can also be seen on a weekly interval that can trigger a fresh round of buying in coming sessions.
So, traders can accumulate the stock on dips in the range of Rs 1,440-1,470 for the upside target of Rs 1,599 with stop loss below Rs 1,350.
Prestige Estates Projects: Buy | Target: Rs 322 | Stop loss: Rs 270 | Upside: 11 percent
After forming Double Bottom pattern around Rs 245 on daily interval, the stock took a V shape recovery and once again managed to surpass above Rs 295 in a short span. Moreover, prices are also trading well above its short and long term moving averages with a formation of a higher high and higher bottom pattern on weekly charts.
This week, a fresh breakout above the key resistance level of Rs 300 has been witnessed that can trigger follow up buying into the stock. So, traders can accumulate the stock in the range of Rs 290-295 for the upside target of Rs 322 with stop loss below Rs 270.
Hindustan Unilever: Buy | Target: Rs 1,955 | Stop loss: Rs 1,750 | Upside: 7 percent
The stock has given a stunner rally from Rs 1,700 level to Rs 1,850 level in short span of time but is consolidating in a range of Rs 1,800-1,850 since then.
At the current level, the stock has formed an Ascending Triangle on daily charts. It managed to breakout above the same this week. So, traders can accumulate the stock in the range of Rs 1,825-1,845 for the upside target of Rs 1,955 with stop loss below Rs 1,750.
The author is Senior Technical Analyst at SMC Global Securities Ltd.
Disclaimer: The views and investment tips expressed by investment experts 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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