Any closings above 9700 will unfold fresh targets of 9,750-9,800, till then its buy on dip & sell on rise market.
The Nifty started the week with a gap and still managed to close above 9,580 levels. On Wednesday session, Nifty traded flat and closed with a minimal gain of 24 points.
On the daily chart, the index is still trading below its rising channel, but is taking a resistance from the same. Overall, the structure is still positive but on the higher side, 9,700 will act as strong resistance and on the downside.
The Nifty has a bunch of support in the range of 9,580-9,550-9,480. On the derivative hands, 9,500 put strike has highest open interest and on higher side maximum open interest at 9700 call followed by 9600 CE for July expiry.
We have seen substantial put writing in 9,500-9,400 strike, suggesting strong support at this level for July series and will push market on the higher side.
We expect the market to trade in a range of 9,400-9,700 for this expiry. Any closings above 9700 will unfold fresh targets of 9,750-9,800, till then its buy on dip & sell on rise market.
Here is a list of four stocks which can give up to 11% return in short term:
M&M: BUY| Target Rs 1500| Stop Loss Rs 1330 | Upside 8%
The stock took support at its 100-DMA and started moving northwards. It is trading in rising channel pattern and has already given correction from its upper band of the channel, currently, the stock has taken support at the lower band of the channel and broke small consolidation phase with decent volume suggesting next leg would be near 1500 zone.
We expect the current bounce to extend further so one can initiate a buy call on stock for the target of Rs1,500 and keep a stop loss below Rs1,330 on a closing basis.
Tata Chemical: BUY above 648 | Target Rs 710 | Stop Loss Rs 615| Upside 10%
On Wednesday session stock showed very good strength along with volume. If we look at weekly chart stock rose after forming Dragonfly Doji candle pattern suggesting strength in coming sessions.
On Wednesday session stock fails to break its immediate resistance of 648 despite good moment so one need to wait for 648 levels before initiating a buy position, above 648 stock looks more attractive and can reach 710 levels in near term.
Bonanza recommends a buy call above 648 for the targets of 710 with keeping stop out level below 615 on a closing basis.
Welspun Corp: BUY | Target Rs 120 | Stop Loss Rs 10 | Upside 11%
The stock has formed a bottom and we have seen a good pull back in counter recently. The stock has given range breakout in June and from there stock cached the momentum towards northward.
On Wednesday session stock has given one more flag breakout with decent volume hinting more upside in near term. Last week stock has shown very good moment and broke its bullish flag pattern which suggests target in near term is around 120 marks.
On the weekly chart, the stock is forming rounding bottom kind of pattern which is again bullish in nature. One can catch the moment at current levels to any dip near 106 level for the target of 120 with keeping a stop loss below 100.
Shriram City Union: BUY | Target Rs 2660| Stop Loss Rs 2450| Upside 5%
The stock is trading in a rising channel pattern and on Tuesday session we have seen a very good breakout above 2510 suggesting the stock is all set to touch its upper band of the channel which is around 2660 levels.
On the weekly chart, the stock has broken its bullish flag pattern with good volume suggesting more upside in the near-term. On the flip side, 2600 will act as strong resistance breaking above the same, will see a quick up move towards 2660 level.
Traders can accumulate the stock at current levels or any dip near 2500 for the target of 2660 with keeping a stop loss below 2450 on a closing basis.Disclaimer: The author is Senior Research Analyst, Bonanza Portfolio Ltd. The views and investment tips expressed by investment experts on Moneycontrol 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.The Great Diwali Discount!
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