Shitij Gandhi
Indian market continued its losing streak and once again ended in the red with Nifty50 slipping below 11,800 levels in absence of any fresh positive triggers on February 25.
The market could not manage to hold at higher levels on the back of weak global markets as coronavirus is still hurting the sentiment across the globe.
On the derivative front once again, call writers were seen adding hefty open interest at 11900, and 12000 call strikes which point towards limited upside moving forward.
From the technical front, both Nifty and BankNifty are currently trading at crucial support levels as both the indices are now close to their 200-Days Exponential Moving Average on the daily interval which is placed around 11,700, and 30,100 respectively.
Any decisive move below these levels could trigger further sell-off into the markets while on the higher side 11,900 and 30,700 are immediate resistance levels.
In the coming sessions, we expect markets to remain volatile as the tug of war between bull and bear is likely to continue.
Here is a list of three stocks which could give 8-11% return in the next 3-4 weeks:
Minda Corporation: Buy| LTP: Rs 115.25| Target: Rs 126| Stop Loss: Rs 105| Upside 9%
The stock has been consistently maintaining its uptrend and seen trading in a rising channel with the formation of higher highs and higher bottom patterns on the daily charts.
On the weekly charts as well, the stock has given a breakout above the symmetrical triangle pattern with prices rising well above its 200-Days Exponential Moving Average along with marginally higher volumes.
On the shorter time frame as well, a breakout above the symmetrical triangle pattern can be seen. Traders can accumulate the stock in the range of Rs 112-115 for the upside target of 126 levels, and a stop loss can be placed below Rs 105.
IPCA Laboratories: Buy| LTP: Rs 1426| Target: Rs 1584| Stop Loss: Rs 1290| Upside 11%
Since the beginning of the year, the stock has been maintaining its bull-run and last week it made a 52-week high above Rs 1,500 levels.
Once again prices have retraced back towards the key support levels and was seen consolidating in the range of Rs 1,350-1,450 from the last few sessions.
At the current juncture, the positive divergences on the secondary oscillators suggest for the next up move into the prices after prolong consolidation as prices are holding well above its short and long term moving averages.
Traders can accumulate the stock in the range of Rs 1,400-1,425 for the upside target of 1584 levels, and a stop loss can be placed below Rs 1,290.
NIIT Technologies: Buy| LTP: Rs 1889| Target: Rs 2045| Stop Loss: Rs 1775| Upside 8%
After hitting 2050 levels last month, the stock witnessed profit booking as prices once again retraced back towards its 50-Days Exponential Moving Average (EMA) on the daily interval to take support around Rs 1,800 levels.
At the current juncture, the stock has formed a rounding bottom pattern after consolidating in the range of 1,800-1,880 for more than seven to eight trading sessions.
This week's breakout above the same has been observed which can add follow up buying into the stock in the coming sessions.
Traders can accumulate the stock in the range of 1,870-1,890 for the upside target of 2,045 levels, and a stop loss can be placed below Rs 1,775.
(The author is Senior Technical Analyst at SMC Global Securities)
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