Ashish Chaturmohta
Nifty50 was largely rangebound to negative throughout the week. The immediate support for the index is seen at 10,440 levels. A break below this crucial level could push the index towards 10,340 and then 10,260.
On the upside, the index needs to cross and sustain above 10,600 for the bounce back to continue towards 10,750-10,850 levels.
In the Nifty options, maximum open interest for Puts is seen at strike price 10,000 followed by 10,200 and for Calls, it is seen at strike price 11,000 followed by 10,800. Some Put writing was seen in 10,500 while a good amount of Call writing was seen at 11,000.
Here is a list of top five stocks which could give 10-15% return in the next one month:
PVR: LTP: Rs 1,422| Stop Loss: Rs 1,350| Target: Rs 1,630| Return 14%
After hitting a high of Rs 1,655 in May last year, the stock has been in a correction mode. In the last four months, the stock has formed a double bottom on the weekly charts and is now trading at breakout levels.
The lows of the bottom were formed at 200-weekly moving average and crossed the average on the daily chart. The price has closed above the upper Bollinger band on the daily chart suggesting a trend to continue in the direction of the breakout.
MACD has given positive crossover with its average and moved above the equilibrium level on weekly chart. Thus, the stock can be bought at current levels and on dips towards Rs 1,400 with a stop loss below Rs 1350 and a target of Rs 1,630 levels.
Axis Bank: Buy| LTP: Rs 607.10| Stop Loss: Rs 600| Target: Rs 700| Return 15%
The stock has formed a symmetrical triangle pattern on the weekly chart and is trading in the range of Rs 650 and Rs 350 odd levels for more than three years.
Last week, the stock has seen a reversal from the lower end of the pattern and witnessed a sharp bounce back. The price has taken a support around its long-term 200-day moving average and rallied back.
The price has given a breakout on the upside from the Bollinger Band with the expansion of bands indicating a continuation of the trend in the direction of breakout on the daily chart.
MACD line has moved above the equilibrium level of zero on the daily chart. Thus, the stock can be bought at current level and on dips towards Rs 360 with a stop loss below Rs 600 and a target of Rs 700.
Pidilite Industries: Buy| LTP: Rs 1,010| Stop Loss: Rs 990| Target: Rs 1,150| Return 14%
The stock has formed a short-term double bottom formation on the daily chart over the last one month. The price has given a breakout from the pattern with long bullish candlestick and high volumes indicating buying participation in the stock.
It has also crossed the previous support zone of Rs 1030-1020 which is now acting as a resistance for the stock. The price has given a breakout on the upside from Bollinger Band with the expansion of bands indicating a continuation of the trend in the direction of breakout on the daily chart.
The stock has also closed above the long-term 200-day moving average on the daily chart. Thus, the stock can be bought at current level and on dips towards Rs 1015 with a stop loss below Rs 990 and a target of Rs 1150.
Equitas Holdings: Sell| LTP: Rs 106| Stop Loss: Rs 112| Target: Rs 95| Return 10%
The stock is in declining mode forming lower tops and lower bottoms on the daily chart. After a gap down day on October 26, the stock has witnessed a bounce back and filled the falling gap area of Rs 121 and Rs 115.
Now the price is again showing reversal and resumed its downtrend. The price has faced resistance at the short-term 21-day exponential moving average and has turned down from that.
The Relative strength index has given a negative crossover with its average on the daily chart. Thus, the stock can be sold at current levels and on rise to Rs 109 with a stop loss above Rs 112 and a target of Rs 95.
Apollo Tyres: Sell| LTP: Rs 220| Stop Loss: Rs 225| Target: Rs 192| Return 13%
The stock has given a breakdown from the major support level of Rs 230 in the month of September this year and touched a low of Rs 192. Since then, the stock has seen a bounce back towards Rs 230 which is now acting as a resistance for the stock.
The price formed a shooting star candlestick pattern at the 50-day moving average. The stochastic oscillator has given a negative crossover with its average on the daily chart. Thus, the stock can be sold at current level and on the rise towards Rs 218 with a stop loss above Rs 225 and a target of Rs 192 levels.
Disclaimer: The author is Head of Technical and Derivatives at Sanctum Wealth Management. 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.
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