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Hot Stocks | Delta Corp, Hero Moto, Kotak Mahindra Bank can give up to 27% return in short term

Key support levels for Nifty are 17,254 (2-week low) and 16,722 (gap support). On the upside, key resistance levels are 18,111 (50 percent extension level of the rise from 7,511-15,431, projected from 14,151), said Vidnyan Sawant of GEPL Capital.

September 17, 2021 / 07:41 AM IST
 
 
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On the monthly charts, Nifty has maintained its higher top higher bottom formation and while it has formed a fresh lifetime high of 17,644.60.

On the weekly timeframe also, the index has been maintaining higher top higher bottom formation for the last seven weeks.

On the indicator front, RSI plotted on the daily timeframe can be seen sustaining consistently above the 65 mark which shows strong positive momentum for the short to medium term.

Key support levels for Nifty are 17,254 (2-week low) and 16,722 (gap support). On the upside, key resistance level is 18,111 (50 percent extension level of the rise from 7,511-15,431, projected from 14,151).

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If the index sustains above this level, it may head higher towards 19,046 (61.8 percent extension level of the rise from 7,511-15,431, projected from 14,151).

We believe that the long-term bullish trend remains intact and the Nifty will move towards 18,111 and 19,046 levels in the coming weeks.

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

Delta Corp | LTP: Rs 237.65 | Target price: Rs 301 | Stop loss: Rs 224 | Upside: 27%

On the monthly charts, this stock has given a multi-year breakout with the formation of the higher top higher bottom which shows a strong positive undertone for the stock.

On the weekly charts, it has given an ascending triangle pattern breakout with huge volume confirmation and it has also sustained above 200-week SMA which shows strong positive sentiment for the stock for the medium to long term.

On the daily charts, it has given a breakout of bullish flag pattern a couple of days back and started moving upwards which indicates the stock is now ready for the next up move.

Momentum indicator RSI plotted on multiple timeframes can be seen placed above the 60 level and moving higher, indicating the stock is currently in a strong bullish momentum.

The resistance is placed at Rs 282 (August 2018 high), followed by Rs 301 (April 2018 high).

The key levels to watch out for on the down are Rs 224 (breakout level), followed by Rs 192 (200-week SMA).

One can buy the stock at the current levels for the target of Rs 282, followed by Rs 301 with a strict stop loss of Rs 224 on a closing basis.

Hero MotoCorp | LTP: Rs 2,924.95 | Target price: Rs 3,629 | Stop loss: Rs 2,636 | Upside: 24%

On the monthly charts, this stock has started to form higher top higher bottom formation after a 7-month correction from Rs 3,629 to Rs 2,636.

On the weekly charts, it is sustaining firmly above the descending trendline which has been there since February 2021 which shows strong positive sentiment for the stock for the medium to long term.

On the daily charts, it has given a breakout of inverted head and shoulder formation after taking strong support at 20-day simple moving average (SMA) which indicates the stock is ready for the next bull run.

On the indicator front, RSI plotted on the medium-term charts can be seen moving higher and sustaining above the 60 mark, indicating strong positive momentum of the current up move.

Going ahead, the immediate resistance is placed at Rs 3,030 (200-day SMA) followed by Rs 3,629 (February 2021 high).

The key support levels are Rs 2,636 (5-week low) and Rs 2,225 (multiple touchpoint level).

One can buy the stock at the current levels for the target of Rs 3,030, followed by Rs 3,629 with a strict stop loss of Rs 2,636 on a closing basis.

Kotak Mahindra Bank | LTP: Rs 1,906 | Target price: Rs 2,150 | Stop loss: Rs 1,794 | Upside: 13%

This stock has sustained above multi-month high which shows a strong positive undertone for the stock for the medium to long term.

On the weekly timeframe, it has given a breakout of horizontal channel pattern, which has been there since March 2021, and moving higher which confirms the strong positive sentiments for the stock for the medium term to long term.

On the daily charts, it has formed an A-B-C pattern and has also sustained above 200-day SMA with volume confirmation which indicates the stock is ready for the next bull run.

On the indicator front, RSI plotted on multiple timeframes can be seen placed above the 55 level and moving higher, indicating the stock is currently in a strong positive momentum.

Going ahead, the immediate resistance is placed at Rs 2,049 (lifetime high), followed by Rs 2,150 (50 percent extension level of the rise from Rs 1,001-2,049, projected from Rs 1,626.

The key support levels are Rs 1,794 and Rs 1,688. One can buy the stock at the current levels with a target of Rs 2,049, followed by Rs 2,150 and a strict stop loss of Rs 1,794 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.
Vidnyan Sawant is the AVP Technical Research at GEPL Capital.
first published: Sep 17, 2021 07:23 am

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