On the weekly chart, Nifty has formed a bullish candle and has remained restricted within previous week's high-low range indicating lack of strength on either side.
The index is moving in a higher top and higher bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 12,050, it would witness buying that would lead the index towards 12,100-12,230. However, if the index breaks below 11,800 it would witness selling, which would take the index towards 11,750-11,600.
For Nifty options, maximum Put open interest stood at 11,500 followed by 11,000 while maximum Call open interest was at 12,500 followed by 12,000. Put writing was witnessed at 11,500 and 11,700 while Call writing was seen at 12,200 and 12,400. Option data suggests a wide trading range of 11,550-12,250.
The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines indicating positive bias. Nifty continues to remain in an uptrend in the medium term, so buying-on-dips continues to be our preferred strategy.
For the week, we expect Nifty to trade in the range of 12,150-11,800 with a positive bias.
Bank Nifty
On the weekly chart, the index has formed a 'Doji' candlestick formation indicating indecisiveness amongst market participants regarding the direction. The index is moving in a higher top and higher bottom formation on the weekly chart indicating positive bias.
The chart pattern suggests that if Bank Nifty crosses and sustains above 31,800, it would witness buying which would lead the index towards 32,000-32,450. However, if the index breaks below 31,200, it would witness selling, which would take the index towards 31,000-30,700.
Bank Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy.
For the week, we expect Bank Nifty to trade in the range of 32,000-30,700 with mixed bias.
The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines indicating positive bias.
Here are five stocks that could return 4-7 percent in near term:
HDFC Life | CMP: Rs 441.40 | Buying range: Rs 438-430 | Stop loss: Rs 423 | Target: Rs 451-460 | Return: 4-6 percent
On the weekly chart, the stock price has decisively broken out from its 'Horizontal Channel' on a closing basis and sustaining above the same. This breakout is accompanied by an increase in volume, which supports bullish sentiments ahead.
The weekly strength indicator RSI and the momentum indicator Stochastic both are in positive territory that supports upside momentum to continue in the near term. The price is sustaining well above its 20, 50 and 100-day SMA which supports bullish sentiments ahead.
Godrej Consumer Products | CMP: Rs 690.40 | Buying range: Rs 690-680 | Stop loss: Rs 672 | Target: Rs 712-727 | Return: 4-6 percent
On the daily chart, the stock has made 'Inverse Head & Shoulder' pattern and has given breakout at Rs 685-680 levels on a closing basis and sustaining above the same. This breakout is accompanied by an increase in volumes, which supports bullish sentiments ahead.
RSI and stochastic both are in positive territory that supports upside momentum to continue in near term. The price is sustaining well above its 20 and 50-day SMA that supports bullish sentiments ahead.
Ujjivan Financial | CMP: Rs 361.50 | Buying range: Rs 361-355 | Stop loss: Rs 346 | Target: Rs 372-383 | Return: 4-7 percent
On the weekly and daily charts, the stock price has decisively broken out from its multiple resistance zone of Rs 357-355 on a closing basis and sustaining above the same. This breakout is accompanied by an increase in volumes, which supports bullish sentiments ahead.
RSI and Stochastic are in positive territory that supports upside momentum to continue in near term. The Stock price is sustaining well above its 20, 50 and 100-day SMA that supports bullish sentiments ahead.
V-Guard Industries | CMP: Rs 242.40 | Buying range: Rs 240-236 | Stop loss: Rs 230 | Target: Rs 250-254 | Return: 5-7 percent
On the weekly chart, the stock price has decisively broken out from its multiple resistance zone of Rs 235-230 on a closing basis and sustaining above the same. This breakout is accompanied with an increase in volumes that supports bullish sentiments ahead.
RSI and Stochastic are in positive territory that supports upside momentum to continue in near term. The stock price is sustaining well above its 20, 50 and 100-day SMA, which supports bullish sentiments ahead.
Apollo Hospitals | CMP: Rs 1,238 | Buying range: Rs 1,238-1,228 | Stop loss: Rs 1,190 | Target: Rs 1,283-1,305 | Return: 4-6 percent
On the weekly chart, the stock price is moving in up-sloping trendline and has bounced back after taking support at its trendline levels and sustaining above the same, which signals positive bias. This breakout is accompanied by an increase in volumes that supports bullish sentiments ahead.
RSI and Stochastic are in positive territory that supports upside momentum to continue in near term. The stock price is sustaining well above its 20, 50 and 100-day SMA that supports bullish sentiments ahead.
The author is Head Technical & Derivatives Research at Axis Securities.
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.
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