By SMC Global
The Nifty is consolidating in the band of 9,600-9,700. But, in recent consolidation, we have not seen any major addition and shedding of open interest. However, options players were active throughout consolidation phase as they sell both calls and puts simultaneously which indicates more consolidation to continue.
The maximum call open interest concentration is at 9,700 calls indicating strong resistance and support around 9,500 as put writers are holding put sell position of those levels.
Data indicates that some more consolidation going forward or minor dip to around 9550 levels. However, if we get any dip we should initiate a fresh long position with the support around 9,500 levels.
On the technical front, 9,550-9,570 spot levels are strong support zone for the Nifty and current trend is likely to continue towards 9,700-9,750 after some consolidation.
Here is a list of five stocks which can give up to 15% return in short term:
Magma Fincorp: BUY| Target Rs157| Stop Loss Rs125| Upside 15%
The stock has been trading in an upward channel since it has given a breakout above Rs120 levels. On the daily charts, it has been continuously trading above its all-important short term and long term moving averages and making higher highs and higher lows with decent volumes.
This week, it broke above its recent resistance of Rs135 which has paved the way for smart up move in the near term as positive divergence in secondary indicators like RSI and stochastic also supporting the rally.
Traders can accumulate the stock in a range of Rs136-142 for the upside target of Rs157 with a stop loss below Rs125.
Astral Poly Technik: BUY|Rs750| Stop Loss Rs590| Upside 15%
The stock has staged a strong consolidation breakout in May and thereafter it is well sustaining above the same. It is also continuously trading well above its 9, 18 & 50 daily EMA levels, which has improved its price structure.
On the daily charts, the stock has also formed a bullish flag formation and has given a breakout above Rs625 levels last week. The upside momentum is also getting well supported by volumes and positive signals in oscillators.
Traders can accumulate the stock in the range of Rs650-660 for the upside target of Rs750 with a stop loss below Rs590.
Future Retail: BUY| Target Rs425| Stop Loss Rs340| Upside 14%
The stock has been continuously maintaining its bull run since the beginning of the year and has delivered more than 100% return.
However, in recent past prices retraced from 350 levels towards 300 level and taken support at its 50 days EMA. Thereafter there is no looking back for the stock as it has once again surpassed its recent high of 350.
In the current scenario, the stock is trading well above its breakout levels and has formed bullish flag formation which is categorised as a continuation pattern.
Traders can accumulate the stock in a range of Rs371-381 for the upside target of Rs425 with a stop loss below Rs340.
ICICI Prudential: BUY| Target Rs465| Stop Loss Rs395| Upside 10%
After trading in the range of Rs390-420 for more than two months, the stock has finally given consolidation breakout above Rs425 with decent volumes.
Rally in prices also gets well supported by secondary oscillators like RSI and stochastic. The price volume breakout on daily charts suggests further upside rally in prices for upcoming sessions.
Traders can accumulate the stock in a range of Rs420-430 for the upside target of Rs465 with a stop loss below Rs395.
Jet Airways: BUY| Target Rs590| Stop Loss Rs480| Upside 13%
After giving a steep rise from 350 towards 550 levels stock witnessed profit booking at higher levels and fell towards Rs450 in recent past which is also the 50% Fibonacci retracement level of the previous rally.
However, since then it has given “V” shape recovery in prices and has managed to close above 510 levels which is 61.8% Fibonacci retracement level of recent fall. The smart recovery signifies that there is more room for the stock to move towards north going forward.
Traders can accumulate the stock in a range of Rs520-530 for the upside target of Rs590 with a stop loss below Rs480.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
