Moneycontrol
Get App
Last Updated : Jan 02, 2020 08:48 AM IST | Source: Moneycontrol.com

Hot Stocks: Balrampur Chini may give up to 20% return in the next 1-3 months

VIX has seen been in decline mode and hit a 30-month low last week. Some bounce back can be seen from lower and may keep the market in check.

Moneycontrol Contributor @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Ashish Chaturmohta

It was a lacklustre session of trade for Nifty as it closed at 12,183 levels up by 0.12 percent on January 1. But, the broader market indices BSE Midcap and Smallcap outperformed the benchmark with a gain of 0.21 percent and 0.64 percent respectively for the day.

Close

The market breadth on the NSE was positive with an advance-decline ratio of 4:3. For the last couple of weeks, the Nifty is facing resistance around 12,300 levels and is trading below it.

Thus, 12,300 needs to be taken out for the rally to continue towards 12,500-12,600 levels. On the downside, immediate support is seen at 12,100 breaking below which correction towards 11,940 levels can be seen.

In Nifty December monthly expiry options, the maximum open interest for Put is seen at strike price 12,000 and 11,500; while for Call maximum open interest is seen at 12,500 followed by 12,200.

Call writing was seen in the immediate strike price which suggests overhead resistance for the market. India VIX closed at 11.60 down by 0.6 percent for the day.

VIX has seen been in decline mode and hit a 30-month low last week. Some bounce back can be seen from lower and may keep the market in check.

Here is a list of top three stocks which could give 12-20 percent return in the next one-three months:

Larsen & Toubro Infotech: Buy | LTP: Rs 1,780 | Stop Loss: Rs 1,710 | Target: Rs 2,000 | Upside 12 percent

After a strong rally, the stock hit an all-time high of 1987 in September 2018 and saw a pause in the uptrend. It has been in a sideways range between Rs 1987-1436 levels.

It has formed a descending triangle pattern on the weekly chart. At lower levels around Rs 1,460, the stock has formed a double bottom pattern and then recorded a breakout on the upside.

Currently, the stock is trading at breakout levels of a triangle and is showing signs of strength. It has formed a bullish continuation pole and flag pattern on the daily chart.

The Relative Strength Index (RSI) and the Stochastic have given a positive crossover with their respective averages on the weekly chart.

MACD has tuned up from the equilibrium level of zero on the weekly chart. Thus, the stock can be bought at current levels and on dips to Rs 1,760 with a stop loss below Rs 1,710 for a target of Rs 2,000 levels.

Balrampur Chini Mills: Buy | LTP: Rs 187 | Stop Loss: Rs 176 | Target: Rs 225 | Upside 20 percent

After a strong rally from Rs 60 to Rs 170 odd levels on the back of high volumes, the stock witnessed a correction towards Rs 110 odd levels. After the recent recovery, the stock has formed a bullish inverted head shoulders pattern on the weekly chart.

Last week, the stock witnessed a breakout from the pattern on the upside with good momentum to hit a 13-year high of Rs 188. Also looking at the broader monthly chart, the stock has formed a major multi-year base and breakout will be seen above Rs 200 levels.

Generally, the stock witnessed a strong uptrend after a multi-year breakout. The momentum indicators are in a bullish mode on the daily, as well as on the weekly chart.

Thus, the stock can be bought at current levels and on dips towards Rs 183 with a stop loss below Rs 176, and a target of Rs 225 levels.

Narayana Hrudayalaya: Buy | LTP: Rs 326 | Stop Loss: Rss 308 | Target: Rs 380 | Upside 16 percent

The stock has seen a strong rally from the low of Rs 183 in February 2019 backed by volumes, indicating buying participation in the stock.

After hitting a high of Rs 317, the stock went into consolidation mode between Rs 320 and Rs 290 odd levels. Now, the stock has given a breakout on the upside with a long body bullish candle.

It has cleared 61.8 percent Fibonacci retracement of the major Rs 379-183. The price has given a breakout on the upside from Bollinger Band with the expansion of bands indicating a continuation of the trend in the direction of breakout on the daily chart.

MACD has given positive crossover with its average above equilibrium level of zero on the daily chart. Thus, the stock can be bought at current levels and on dips towards Rs 321 with a stop loss below Rs 308, and a target of Rs 380 levels.

(The author is Head of Technical and Derivatives, Sanctum Wealth Management)

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.

Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!

First Published on Jan 2, 2020 08:48 am
Sections
Follow us on