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Last Updated : Feb 12, 2019 12:47 PM IST | Source: Moneycontrol.com

'Immediate resistance at 10,960-11,020 for Nifty, 11,118 crucial'

Immediate resistance zone is seen at 10,960-11,020. But, last week’s high of 11,118 needs to be taken out a rally to be seen on the upside

Moneycontrol Contributor @moneycontrolcom
 
 
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Ashish Chaturmohta

The Nifty opened lower and after the first hour of decline, the index remained rangebound in negative territory. It closed at 10,888, down by 0.5 percent on February 11.

The broader market i.e. the BSE Midcap and the BSE Smallcap underperformed the benchmark losing 1.5 percent each for the day. The market breadth on the NSE was negative with one stock advancing for every two declines.

On the weekly charts, the index formed a bearish shooting star candlestick pattern. Thus, low of the candle (10,814) becomes a critical level to watch. If the index slips below this levels then the Nifty is likely to see a decline towards 10,650-10,600.

On the upside, immediate resistance zone is seen at 10,960-11,020. But, last week’s high of 11,118 needs to be taken out for a rally to be seen on the upside.

Nifty options: Maximum open interest for Puts is seen at strike price 10,400 followed by 10,700. For Calls, it is seen at strike price 11,000 followed by 11,200. With the Nifty moving lower, Put unwinding was seen in 10,800, 10,900 and 11,000 as Call writing was seen at 10,900.

Here is a list of top five stocks that could give 7-15 percent return in the next 1 month:

Vinati Organics: Buy| LTP: Rs 1,636| Stop loss: Rs 1,535| Target: Rs 1,850| Upside: 13 percent

The stock has been in an uptrend for the last one year forming higher tops and higher bottoms on the weekly charts. The stock has been consolidating for the last eight weeks and is showing signs of a breakout on the upside.

Price has given a breakout on the upside from the Bollinger Band with the expansion of bands indicating a continuation of a trend in the direction of the breakout on the daily chart.

The stock has taken support at its 50-day moving average that has been acting as a support for the stock. The Relative Strength Index (RSI) has given a positive crossover with its average on the weekly chart.

MACD line has moved above the equilibrium level of zero and is moving higher on the daily chart. Thus, the stock can be bought at current levels and on dips towards Rs 1,610 with a stop loss below Rs 1,535 and a target of Rs 1,850.

HDFC Bank: Buy| LTP: Rs 2,140| Stop loss: Rs 2,060| Target: Rs 2,300| Return: 7 percent

The stock had witnessed a breakout from the consolidation zone of Rs 2,030-1,910 in late November last year and since then it is trading in a range. It has been consolidating between Rs 2,150 and Rs 2,030 for the last 10 weeks.

The recent decline in the stock has taken support at its 200-day moving average and bounced back to the upper end of the range.

Currently, the stock is trading at a breakout level of the pattern. MACD line has given a positive crossover with its average and moved above the equilibrium level of zero on the daily chart that suggests a change in trend from sideways to up.

Thus, the stock can be bought at current levels and on dips towards Rs 2,110 and a stop loss below Rs 2,060 for a target of Rs 2,300.

HCL Technologies: Buy| LTP: Rs 1,079| Stop loss: Rs 1,030| Target: Rs 1,250| Upside: 15 percent

The stock has seen major consolidation between Rs 1,125 and Rs 700 over the last four years. The stock touched high of Rs 1,125 in the month of September last year and declined down to Rs 930 which is strong support level for the stock.

Price has rallied from lower levels on good volumes and strong momentum suggest buying participation in the stock.

MACD line has given a positive crossover with its average and has moved above the equilibrium level of zero on the weekly chart. Thus, the stock can be bought at current levels and on dips to Rs 1,060 with a stop loss below Rs 1,030 for the target of Rs 1,250.

Ujjivan Financial Services: Sell| LTP: Rs 259| Stop loss: Rs 274| Target: Rs 230| Downside: 11 percent

The stock witnessed a sharp decline from May high of Rs 435 last year to a low of Rs 166 in October. Since then, the stock has retraced 50 percent of the decline and seeing a reversal. The previous support level of Rs 285 is now acting as resistance for the stock.

The price has given a breakout on the downside from the Bollinger Band with the expansion of bands indicating a continuation of the trend in the direction of breakout on the daily chart.

The RSI on the weekly chart has given a negative crossover with its average last week. MACD line on the daily chart has moved below the equilibrium level of zero.

Thus, the stock can be sold at current levels and on the rise towards Rs 263 with a stop loss above Rs 274 for a target of Rs 230.

Repco Home Finance: Sell| LTP: Rs 363| Stop loss: Rs 378| Target: Rs 330| Downside: 9 percent

The stock saw a sharp decline from Rs 650 to Rs 292 last year and then bounced back to Rs 449 in January. The stock has again seen a reversal from Rs 449 and resumed its decline.

The price was consolidating in a range of Rs 370 and Rs 415 in the last couple of weeks. The price has given a breakout on the downside from the Bollinger Band with the expansion of bands indicating a continuation of the trend in the direction of breakout on the daily chart.

The RSI on the weekly chart has given a negative crossover with its average last week. Thus, the stock can be sold at current levels and on a rise towards Rs 368 with a stop loss above Rs 378 for the target of Rs 330.

The author is Head of Technical and Derivatives at Sanctum Wealth Management. 

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Feb 12, 2019 12:41 pm
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