Top 10 stocks which could give up to 20% return in the next 3-4 weeks.
The Nifty50 was hovering below its 100-day exponential moving average (DEMA) placed at 10,425 on Tuesday but now a breakdown below 10,300 or a breakout above 10,630 is likely to decide the trend for the markets.
The Nifty witnessed fourth consecutive negative close at 10,359 levels, down by 0.95 percent on Monday. The index has formed a Bearish Belt Hold candlestick pattern on Monday as opening and high were the same.
There was some respite for bulls as market managed to hold on to 10,300 odd support levels and witnessed a small bounce back. For the last four weeks index has been trading broadly in a range of 10,640 and 10,300 levels.
“It looks like Nifty is now again testing lower end of this range. In Nifty option, strike price 10400 witnessed a significant amount of open interest addition suggesting writing activity which will act as resistance for the market,” Ashish Chaturmohta, Head of Technicals and Derivatives, Sanctum Wealth Management told Moneycontrol.
“Thus, in the near-term, index needs to cross above 10,430-10,450 levels for the pullback to be seen towards 10,600 levels. While sustaining below 10,430 levels index is likely to retest recent low of 10,276 levels,” he said.
Chaturmohta further added that a break below it next support for the index is seen at 10,124 levels where 200-day moving average is seen. Overall 10,100-10,050 is the next important support for the market where last December month lows are seen.
We have collated a list of top 10 stocks from different experts which could give up to 20% return in the next 3-4 weeks:
Ashish Chaturmohta, Head of Technicals and Derivatives, Sanctum Wealth Management
Tech Mahindra Limited: BUY| CMP Rs631| Stop loss Rs600| Target Rs720-740| Return 17%
The stock has been in an uptrend for the last seven months forming a higher top and higher bottom formation on the daily chart.
Last month, the stock hit a high of Rs609 to fill up major falling gap area which was formed in the month of May 2015. This gap acted as resistance and price subsequently witnessed a correction.
The decline was on volumes which were below average suggesting that investors are holding on to their long positions in the stock.
The price has swiftly rallied back again to hit 33 months high on Monday. The current bounce back has been on strong price momentum and good volumes indicating buying participation coming at higher levels in the stock.
MACD has given a positive crossover with its average and turned up above neutral level of zero suggesting the start of fresh uptrend. Thus, the stock can be bought at current levels and on dips to 620 with a stop loss below 600 for a target of 720-740 levels.
Blue Star Limited: BUY| CMP Rs787| Stop loss Rs745| Target Rs850| Return 8%
The stock has been in a long-term uptrend forming the higher top and higher bottom formation on its weekly chart. For the last 5-6 months, the price has been facing resistance at 800 levels and corrected down to 680 levels to consolidate in a range.
The price has been finding support at its 200-days moving average (DEMA) and has also seen a short-term base formation between 750 and 700 levels recently.
In the last three sessions, the stock has shown good momentum and volumes accumulation at lower levels in the stock. Price has also given breakout from Bollinger bands with the expansion of bands suggesting price is likely to move in direction of the breakout.
MACD has moved above neutral level of zero suggesting the start of a fresh uptrend. Thus, the stock can be bought at current levels and on dips to 775 with a stop loss below 745 for a target of 850 levels.
Thomas Cook Limited: BUY| CMP Rs257| Stop loss Rs243| Target Rs300| Return 17%
On the long-term charts stock has formed rounding base between 170 and 255 odd levels over last 30 months. For last several months index has been trading in a range of 215 and 255 odd levels.
Thus, the stock has formed a bullish cup and handle pattern. Yesterday stock witnessed strong price momentum and high-volume action suggesting buying participation in the stock.
The price has also given a breakout from Bollinger bands with the expansion of bands suggesting price is likely to move in direction of the breakout.
MACD has moved above neutral level of zero suggesting the start of a fresh uptrend. Thus, the stock can be bought at current levels and on dips to 251 with a stop loss below 243 for a target of 300 levels.
Tata Motors Limited: SELL| CMP Rs352| Stop loss Rs370| Target 310| Return 12%
The stock is in major downtrend forming lower top lower bottom formation. Yesterday stock hit fresh 52-week low. Price has formed long bearish candle with high volumes indicating selling pressure in the stock.
The stock has broken last four weeks consolidation low and given a fresh breakdown. Price has also given a breakout from Bollinger bands with the expansion of bands suggesting price is likely to move in direction of the breakout.
Thus, the stock can be sold at current levels and on rise to 357 with a stop loss of 370 for a target of 310 levels.
Piramal Enterprises Limited: SELL| CMP Rs2441| Stop loss Rs26540| Target 2200| Return 10%
The stock had been consolidating between a range of 2550 and 3000 odd levels for last nine months. On Monday, the stock witnessed breakdown from this range with a long bearish candle and above average and above volumes.
Price has also given breakout from Bollinger bands with the expansion of bands suggesting price is likely to move in direction of the breakout. The daily ADX line, an indicator of trend strength has turned up above neutral level of 20 suggesting downtrend is likely to continue.
Thus, the stock can be sold at current levels and on rise to 2480 with a stop loss of 2540 for a target of 2200 levels.
Aditya Agarwala, Technical Analyst at YES Securities
Cox & Kings Ltd: BUY| Target Rs300| Stop Loss Rs225| Return 20%
On the weekly chart, Cox & Kings Ltd. (COX&KINGS) is on the verge of a breakout from a channel resistance line placed at 270 (as indicated on chart).
A sustained trade beyond the neckline of the pattern with healthy volumes can take the stock higher in the coming trading sessions.
On the daily chart, the stock has taken support at the 61.8% and turned upwards after forming a hammer candlestick pattern suggesting a temporary bottom formation is in place.
Moreover, RSI is forming higher lows indicating a shift in a range in favour of the bulls. The stock may be bought in the range of 246-252 for targets of 280-300, keeping a stop loss below 225.
Caplin Point Laboratories Ltd: BUY| Target Rs720| Stop Loss Rs575| Return 16%
On the weekly chart, Caplin Point Laboratories Ltd. (CAPLPOINT) has turned upwards after testing the lower end of the channel suggesting bullishness.
Further, it is on the verge of a breakout from the upper end of the channel placed at 652. A sustained trade above the neckline with healthy volumes can extend the up move.
On the daily chart, the stock is approaching neckline of an Inverse H&S pattern placed at 660 after taking support at the 61.8% Fibonacci retracement level.
RSI has turned upwards breaking out of the upper band of the Bollinger Bands suggesting higher levels in the coming trading sessions. The stock may be bought in the range of 615-625 for targets of 685-720, keeping a stop loss below 575.
Avanti Feeds Ltd: BUY| Target Rs2800| Stop Loss Rs2250| Return 15%
On the weekly chart, Avanti Feeds Ltd. (AVANTIFEED) is on the verge of a breakout from a bullish wedge pattern suggesting the start of a bull trend on cards. Further, a sustained trade above 2520 i.e. neckline of the pattern can extend the uptrend in the coming trading sessions.
On the daily chart, the stock continues to form higher highs and higher lows affirming the strength. Further, RSI has also broken out from the upper Bollinger band suggesting higher levels.
The stock may be bought in the range of 2400-2450 for targets of 2700-2800, keeping a stop loss below 2250.
Vinay Rajani, Technical Analyst, PCG Desk, HDFC Securities
Chambal Fertilisers: BUY| Target Rs. 177 | Stop-loss Rs 155 | Return 7%
On 26th Feb 2018, the stock registered a new 52-weeks high and all-time high with a jump in volumes. For the last four sessions, the price has been consolidating in the range of 158-170 with relatively lower volumes.
The stock price currently placed above 20, 50, 100 and 200 DMA, indicating bullishness on all time frames. The stock is one of the few fertilizer stocks, which is hovering around its all-time high.
Oscillators like MACD, KST, and ADX are showing strength on weekly and monthly charts. The level of 155 seems to have become the floor for the short term trend and the recent correction from all-time high seems to be an opportunity for traders to initiate fresh longs.
We recommend buying Chambal Fertilisers for the upside target of 177, keeping a stop loss below Rs155.
Hindalco: SELL| Target Rs. 215 | Stop-loss Rs 238 | Return 6%
The stock price has recently violated the crucial support of multiple bottoms placed around 132 on the daily charts. The price has also breached the support of its 200-DMA, placed at 237.50.
The stock closed at the lowest level since 25th Sep 2017. The price witnessed a violation of support along with the rise in volumes.
The stock has been forming lower tops and lower bottoms on the on the daily chart since starting of this calendar year. The stock has reached below 20, 50, 100 and 200-DMA indicating a bearish trend on short to medium term charts.
Though the entire month of March is yet to be finished for this quarter ending, there are good chances of stock forming a bearish engulfing pattern on its quarterly charts. We recommend Selling Hindalco for the downside target of 215, keeping a stop loss at 238.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.