A sustained trade above 11,975 may resume the uptrend taking Nifty higher to levels of 12,100-12,140
Nifty ended June 10 session marginally higher amidst wild intraday swings in both the directions to form a Doji candlestick pattern at the end indicating indecisiveness in the minds of market participants.
Further, it made a high at the 61.8 percent Fibonacci retracement level i.e. 11,975 and witnessed minor profit booking. Failure to cross this resistance could lead to more bouts of profit booking in the coming trading sessions.
The immediate support on the downside is placed at 11,870-11,845, trade below which can test levels of 11,770-11,660.
On the flip side, a sustained trade above 11,975 may resume the uptrend taking it higher to levels of 12,100-12,140. RSI has formed a positive reversal on the daily chart, suggesting that the bullishness is still intact.
Here are three stocks that could give 6-14 percent return in the next 3-4 weeks:
Container Corporation of India: Buy| LTP: Rs 533| Target: Rs 565-595| Stop loss: Rs 515| Upside: 6-12 percent
On the weekly chart, Container Corporation of India (CONCOR) is on the verge of a breakout from a Triangle pattern resistance line placed at Rs 545.
A sustained trade beyond this neckline backed by healthy volumes can resume the uptrend in the stock taking it higher to Rs 565-595.
Moreover, on the daily chart, it is on the verge of a breakout from a sideways narrow consolidation resistance of Rs 540. A breakout from the consolidation pattern will resume the uptrend in the stock.
The RSI has also turned northwards after taking support at the 50 level forming a higher low. The stock may be bought in the range of Rs 530-535 for the targets of Rs 565-595, keeping a stop loss below Rs 515.
KEC International: Buy| LTP: Rs 317| Target: Rs 344-355| Stop loss: Rs 300| Upside: 8-12 percent
On the daily chart, KEC International (KEC) is on the verge of a breakout from a bullish Flag suggesting a resumption of the bull trend on cards on a breakout from the pattern.
The neckline of the pattern is placed at Rs 320, and a sustained trade beyond this resistance line will take the stock higher towards Rs 344-355.
Further, on the weekly chart, it has resumed its uptrend after testing the neckline of an inverted Head & Shoulders pattern indicating higher levels in the coming trading sessions.
The RSI has also turned higher after making a positive divergence suggesting higher levels. The stock may be bought in the range of Rs 315-320 for targets of Rs 344-355, keeing a stop loss below Rs 300.
Mahindra & Mahindra: Buy| LTP: Rs 647| Target: Rs 710-735| Stop loss: Rs 610| Upside: 10-14 percent
On the daily chart, Mahindra & Mahindra (M&M) has taken support at the 61.8% Fibonacci retracement level placed at Rs 630 and turned upwards forming a higher low suggesting the downtrend is losing steam.
Further, a sustained trade above Rs 660 that happens to be the recent consolidation highs and moving average resistance will extend the up move to Rs 710-735.
Moreover, on the weekly time frame, it has turned higher after a Hammer candlestick pattern and follow up candle lows are above the high of the Hammer candle confirming a short-term trend reversal in favour of the bulls.
Further, RSI is also suggesting higher levels in the coming trading sessions. The stock may be bought in the range of Rs 645-650 for targets of Rs 710-735, keeping a stop loss below Rs 610.
The author is Senior Manager, Technical Analysis at YES Securities Ltd.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.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.