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Hot Stocks | Can Fin Homes, ONGC and ITC can give 15-28% returns in short term

If Nifty manages to breach 17,812, we might see it move higher towards 18,011 (1.38 percent extension level of the rise from 14,151-15,915, projected from 15,513), said Karan Pai of GEPL Capital

September 24, 2021 / 07:46 AM IST
 
 
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Nifty is continuing to ride the upper Bollinger band and is holding above the previous week's low, thus indicating that the secondary bullish trend remains.

On the options open interest front (30th Sept 2021 expiry), the highest open interest is seen at the 17,700 Call options. On the Put side, the highest open interest is seen at 17,000.

So, we can expect the broader range of the index to be between 17,000 and 17,700 till the monthly expiry.

On the indicator front, RSI plotted on the weekly timeframe remains above 50-mark and is drifting higher, indicating the bulls are trying to maintain their hold.

Going ahead, the crucial levels to watch out for are 17,812 (1.27 percent extension level of the rise from 14,151-15,915, projected from 15,513 mark).

Close

If the index manages to breach above 17,812, we might see it move higher towards 18,011 (1.38 percent extension level of the rise from 14,151-15,915, projected from 15,513).

The psychological level of 17,000 will act as a key support level. If the index breaches below this level, our bullish view will be negated and we might see the index move lower towards 16,764.

Here are three buy calls for the next 3-4 weeks:

Can Fin Homes | LTP: Rs 678.65 | Target price: Rs 779 | Stop loss: Rs 619 | Upside: 15%

This stock, on the monthly timeframe, has been forming a higher high higher low pattern since March 2020.

On September 21, it found support at its 20-day simple moving average (SMA) and moved higher for two sessions taking the prices higher towards the fresh 52-week high.

On the indicator front, RSI plotted on the weekly timeframe is placed above the 50-mark and is currently moving higher towards the overbought level, indicating increasing bullish momentum in the prices.

Going ahead, Rs 718 (61.8 percent extension level of the rise from Rs 251-619.90, projected from Rs 491) is going to act as a resistance.

If prices manage to move above this level, we might see a move towards Rs 779 (78.6 percent extension level of the rise from Rs 251-619.90, projected from Rs 491).

The level of Rs 619 (previous swing high) will act as a red flag level. If prices breach below this level, our bullish view will be negated, and we might see the prices move lower and test Rs 550 (20-week SMA).

ONGC | LTP: Rs 137.75 | Target price: Rs 173 | Stop loss: Rs 125 | Upside: 26%

ONGC, on the monthly timeframe, can be seen drifting higher, indicating the long-term trend of the stock remains bullish.

On the weekly chart, we can see that the prices are resuming their up move after a correction. The prices have been forming a higher high higher low pattern for the past four weeks after bouncing off the level of Rs 108.50.

On September 15, it gained momentum and moved higher and broke above the previous swing high of Rs 128.50. Ever since prices have been moving higher.

On the indicator front, RSI plotted on the weekly timeframe has been placed above the 50 mark since November 2020.

Currently, it can be seen moving higher towards the overbought level after forming a bullish hinge near 50 mark.

Going ahead, the level of Rs 149 (previous wing high) is going to act as a resistance. If prices manage to move above this level, we might see them move towards Rs 173 (multiple touchpoint levels).

The level of Rs 125 (weekly low) will act as a red flag level. If the prices breach below this level, our bullish view will be negated and we might see the prices move lower towards Rs 113 (the upward slopping trendline).

ITC | LTP: Rs 242.50 | Target price: Rs 310 | Stop loss: Rs 231 | Upside: 28%

ITC, on the monthly timeframe, took a break after testing the high of Rs 239. This actually led to prices consolidating for nearly seven months.

On the weekly chart, we can see the prices have moved out of consolidation in the previous week. This breakout was backed by a huge volume buildup indicating participation in the up move.

On September 21, the prices gained momentum and not only moved above the previous swing high, but also closed above it.

On the indicator front, RSI plotted on the weekly timeframe is placed above the 50 mark and is currently moving higher towards the overbought level, indicating increasing bullish momentum in the prices.

Going ahead, the Rs 266-270 (multiple touchpoint levels and 78.6 percent retracement level of the fall from Rs 310-134.60) is going to act as a resistance.

If prices manage to move above this level we might see a move towards Rs 293-310 (multiple touchpoint level and May 2019 high).

The level of Rs 231 (weekly low) will act as a red flag level. If prices breach below this level, our bullish view will be negated, and we might see the prices reenter consolidation between Rs 219-200.

(The author is a technical analyst at GEPL Capital)

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.
Karan Pai
first published: Sep 24, 2021 07:31 am

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