Jayant Manglik of Religare Broking expects the Nifty to hold 10,550 in case of any decline, while a decisive breakout above 10,850 would trigger a fresh upmove
The Nifty moved in a 150 point range and ended trade on a flat note last week, weighed down by mixed global cues. It finally settled at 10,821.85, closer to the week’s high.
However, only a handful of index majors helped the Nifty sustain at higher levels, while the decline continued on the broader front. A strong surge was seen in select banking, pharmaceutical and fast moving consumer goods (FMCG) majors on Friday, which helped it recoup losses and close flat.
With no major event locally, global cues would continue to dictate the market trend. The prevailing consolidation in the Nifty would end next week, but its impact will be higher if the broader market also joins in.
Volatility will keep traders on their toes as derivatives expiry is scheduled on Thursday, June 28. Traders should continue with the positive yet cautious approach and prefer index majors over others. Banking, mainly private, and financial counters are likely to outdo others, along with select stocks from the pharma and FMCG space.
We expect the Nifty to hold 10,550 in case of any decline, while a decisive breakout above 10,850 would trigger a fresh upmove.
Here is a list of top 3 stocks that could return 5-11% in the next 30 days:
Bank of India: Sell | Target: Rs 83| Stop loss: Rs 98| Return: 10.75%
In line with other PSU banking counters, Bank of India has been trading under pressure and inching gradually lower. It is currently trading near the lower band of its consolidation range i.e. Rs 92-105 and is likely to witness a fresh breakdown in the near future.
Traders are advised to initiate fresh short in the range Rs 93-95. It closed at Rs 92.10 on June 25, 2018.
Can Fin Homes: Buy| Target: Rs 388| Stop loss: Rs 346| Return: 7.78%
Can Fin Homes has retraced considerably from the top and has swiftly rebounded of late after retesting its crucial support zone of 200-day EMA on the weekly chart.
Further, on Monday i.e. on June 25, it completed the formation of a fresh buying pivot on the chart, supported by the rise in volume. The chart pattern also indicates that the prevailing recovery would continue.
We advise investors to buy stocks on a dip in the range of Rs 355-360. It closed at Rs 362.45 on June 25, 2018.
Tata Chemicals: Sell | Target: Rs 685| Stop loss: Rs 740| Return: 4.86%
Tata Chemicals, after retesting its record high, has formed a distribution pattern on the daily chart and is likely to witness a breakdown from the same in the near future.
Traders shouldn’t miss this opportunity and go short in the range of Rs 720-725. It closed at Rs 716.60 on June 25, 2018.Disclaimer: The author is President, Religare Broking Ltd. 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.The Great Diwali Discount!
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