While bias is likely to remain bearish as far Nifty is holding below 12100 levels. Traders should keep a stock-specific action onto the radar.
Indian markets continued its losing streak for the fourth-consecutive session with Nifty50 slipping back below 12,000 levels while Bank Nifty also hammered down badly after a sharp selloff seen in the banking stocks.
However, some recovery was seen from lower levels as Nifty took support at its 100-day exponential moving average (EMA). But, from a derivative front, there is a lot of outstanding short position held with call writers which could cap any sharp upside into the prices.
On the higher side, 12,100 would act as a major hurdle for the Nifty50 while 11,900 should provide immediate support. In the coming sessions, if we witness a tug of war among bulls and bears with some volatility on the cards.
While bias is likely to remain bearish as far Nifty is holding below 12,100 levels. Traders should keep a stock-specific action onto the radar.
Here is a list of top three stocks which could give 8-16 percent return in the next three-four weeks:
Affle (India) Limited: Buy | LTP: Rs 2,042| Target: Rs 2,380| Stop Loss: Rs 1,750| Upside 16 percent
In the recent past, the stock has given a sharp breakout above its multi-week highs and at the same time risen sharply from Rs 1,700 to Rs 2,000 levels in a short span of time.
However, since then, the prices have been consolidating in a range and are holding well above their short and long term moving averages on the daily interval.
The broader trend is still on the upside as the stock is making a higher highs and higher bottom pattern. At the current juncture, positive divergences on oscillators with a breakout above rectangle pattern suggest more upside.
Traders can accumulate the stock on dips in the range of Rs 1,980-2,020 for the upside target of Rs 2,380 levels, and a stop loss can be placed below Rs 1,750.
Nilkamal Ltd: Buy | LTP: Rs 1,503 | Target: Rs 1,670 | Stop Loss: Rs 1,375 | Upside 11 percent
The stock has been consistently maintaining the bull-run and is seen trading in a rising channel with the formation of higher highs and higher bottom pattern on the broader charts.
However, from almost four weeks, the stock has been consolidating in a range of Rs 1,400 to Rs 1,500 with prices holding well above the long-term moving averages on the daily as well as on the weekly interval.
This week, the stock has given a breakout after forming a rounding bottom pattern after prolong consolidation which could trigger follow-up buying into the prices moving forward.
Traders can accumulate the stock in the range of Rs 1,490-1,500 for the upside target of Rs 1,670 levels with a stop loss below Rs 1,375.
Voltas Ltd: Buy | LTP: Rs 693 | Target: Rs 753 | Stop Loss: Rs 655 | Upside 8 percent
On the daily interval, the stock has been steadily holding above its long-term moving averages and can be seen consolidating in range of Rs 670-700.
However, on broader charts, the stock has formed a Cup and handle pattern and is on the verge of a breakout above the same.
At the current juncture, the stock has given a breakout above the falling trend line on a shorter time frame which suggests further upside into the prices.
Traders can accumulate the stock in the range of Rs 690-695 for the upside target of Rs 753 levels, and a stop loss can be placed below Rs 655.
(The author is Senior Technical Analyst at SMC Global Securities)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.