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Hot Stocks | PNC Infratech, NBCC (India), EIL can give 10-15% returns in short term

On the higher side, Nifty may find an immediate resistance in the range of 13,000-13,100 levels where we have seen Call writing.

November 24, 2020 / 07:46 AM IST
 
 
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Nifty continued its northward journey for the second day on the trot where it gained 67 points to close at yet another new all-time high level on November 23.

Out of the last 16 trading sessions, Nifty closed in the green in fourteen sessions, gaining nearly 1,300 points.

The trend of the market continues to be bullish where Nifty is forming bullish higher top higher bottom formation on the daily chart.

In the options segment, we have seen put writing at 12,700-12,800 levels. This level also coincides with the intermediate low of 12,730 made on November 20.

Close

Therefore, we believe that the intermediate uptrend will remain intact till the Nifty is trading above 12,700 levels.

On the higher side, Nifty may find an immediate resistance in the range of 13,000-13,100 levels where we have seen Call writing.

Considering the kind of sharp run we have had during the last few sessions and call writing at 13,000 levels, we expect a slowdown in the momentum for the benchmark index.

Trading longs should be done with the trailing stop loss of 12,700 levels.

We expect midcaps which did well along with the benchmark index to outperform in the coming days.

Bank Nifty has outperformed Nifty during November by gaining a whopping 21 percent against an 11 percent rise in Nifty.

After a sharp rise of over 20 percent, we expect Bank Nifty to witness sideways movements for the remaining days of November.

Immediate support for Bank Nifty is placed at the 28,500 level. Any close below 28,500 would lead to some correction in Bank Nifty.

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

PNC Infratech | LTP: Rs 173.50 | Target price: Rs 190 | Stop loss: Rs 163 | Upside: 10%

The stock has broken out from the downward sloping trendline, adjoining the closing of August 25 and November 19 on the daily line charts.

The short-term, as well as the medium-term trend of the stock, is positive where the stock is trading above its all-important short-term and long-term moving averages.

Volumes have been higher during the up days as compared to down days during the last few days, indicating accumulation in the stock.

Construction and infra stocks have been doing well during the last few days.

NBCC (India) | LTP: Rs 26.15 | Target price: Rs 30 | Stop loss: Rs 24 | Upside: 15%

The stock broke out on the daily chart last week where it closed at a two-month high with a sharp surge in volumes.

During the last couple of months, the stock price formed a strong base by forming a triple bottom around Rs 22.50.

The short-term trend of the stock is positive where it is trading above its 5 and 20-day EMA.

+DI is placed above the -DI while the ADX line is placed above the 25 level, indicating momentum in the uptrend.

Engineers India (EIL) | LTP: Rs 73.40 | Target price: Rs 82 | Stop loss: Rs 68 | Upside: 12%

The stock broke out on the daily charts to close at a three-month high with a surge in volumes.

+DI is placed above the -DI while the ADX line is placed above the 25 level, indicating momentum in the uptrend.

RSI is placed above 70, indicating strength in the stock.

(The author is a technical research analyst at HDFC 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.
Nandish Shah
first published: Nov 24, 2020 07:15 am

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