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Last Updated : Jun 28, 2017 08:30 AM IST | Source: Moneycontrol.com

Nifty is likely to expire in 9500-9600 range; 5 stock which can give up to 14% return

In the July contracts, put writes are active at 9400 strike and call writes are active at 9800 strike indicating a band of 9400-9800.

 
 
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SMC Global

We have seen aggressive call writing in recent trading sessions as call writers were active in 9,600 and 9,550 strike calls indicating limited upside in the June expiry.

The highest open interest is placed at 9,700 call followed by 9,600 while we are witnessing maximum put open interest at 9,500 strike.

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As per the current data, Nifty is likely to expire in the band of 9500-9600 in current series. Till now, most of the Nifty futures has been rolled with the average of 9550 July futures, if Nifty moves above this levels short covering can trigger going forward.

In the July contracts, put writes are active at 9400 strike and call writes are active at 9800 strike indicating a band of 9400-9800.

Historically, in last ten years, 8 months closed in positive zone for July series, with average positive returns of around 2.5 percent. Looking at overall data, we advise investors to do a long rollover to July series.

Here is a list of top five stocks which can give up to 14% return in the short term:

ITC: BUY| Target Rs365| Stop Loss Rs295| Upside 14%

The stock has been trading relatively higher after witnessing a consolidation breakout above Rs290 levels last month.

Additionally, the stock has formed an inverted Head & Shoulder formation on the daily charts which is considered as bullish in nature and is on verge of giving breakout above 320.

Traders can buy the stock above Rs320 for the upside target of Rs365 with a stop loss below Rs295.

Welspun Enterprises Ltd: BUY| Target Rs119| Stop Loss Rs97| Upside 13%

The stock has given a price volume breakout above Rs100 levels on 12th June and since then it went into consolidation. However, in Tuesday’s session once again buying momentum seen in the stock and heavy volumes suggests that upside may once again resume in coming sessions.

Moreover, from technical charts, the stock has also formed bullish flag formation. Traders can accumulate the stock in a range of Rs105-110 for the upside target of Rs119 with a stop loss below Rs97.

Carborundum Universal Ltd: BUY| Target Rs351| Stop Loss Rs320| Upside 9%

The stock has been continuously maintaining its uptrend ever since it has given consolidation breakout above Rs310 levels. However, the stock has also managed to uphold a thin range of 340-325 in last seven trading sessions.

Now, on daily charts, it has formed a rectangle formation which is generally traded as continuation pattern for the previous trend. Traders can accumulate the stock in a range of Rs320-325 for the upside target of Rs351 and a stop loss below Rs302.

HDFC: BUY| Target Rs1810| Stop Loss Rs1550| Upside 10%

The stock has been trading in an upward channel since the beginning of year making higher and higher lows on the daily charts. Now, once again, the stock is showing some strength as secondary indicators like RSI and Stochastic are showing positive divergence.

Moreover, its short term and long term moving averages are also supporting the upside in prices along with large volumes.

Traders can accumulate the stock in a range of Rs1640-1650 for the upside target of Rs1810 and a stop loss below Rs1550.

Laurus Labs: BUY| Target Rs68| Stop Loss Rs570| Upside 12%

The stock has formed a bullish flag formation on the daily charts and is on verge of giving fresh breakout above its resistance level of Rs620.

Additionally, some large volumes in past session along with positive divergences in secondary indicators like RSI and Stochastic are also signaling positive moves for the stock going forward.

Traders can accumulate the stock in a range of Rs615-610 for the upside target of Rs685 with a stop loss below Rs570.

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 decision.

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First Published on Jun 28, 2017 08:28 am
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