Dinesh Rohira 5nance.com
The Nifty continued to trade in a negative trajectory despite gaining momentum in Thursday’s trade to close near 9,900 level but failed to cohere above crucial mark towards the weekend.
The benchmark index remained under pressure as traders continued with bearish stance and the index closed with a negative bias at 9,837, down by 66 points from its earlier gains.
On the weekly chart, Nifty formed a bearish reversal pattern indicating a further consolidation despite gaining a marginal momentum.
The index is currently trading below its 20-days exponential moving average (DEMA) which is seen at . This will act as an immediate hurdle for the index in the upcoming session.
Further, the RSI or the relative strength index is placed at 46 indicates a negative outlook for Nifty which is at selling regime.
The Nifty is expected to witness a major support at 9,793 level, while the upper circuit will be tested from its 20-days exponential moving average at 9,900.
As traders turn cautious over the geopolitical issues coupled with the domestic headlines, the market is expected to ride on the volatile regime with a negative outlook in the short-term unless it witnesses favourable events.
Here is a list of top four stocks which can give up to 11% return in the short term:
Suprajit Engineering : BUY| Target Rs310 | Stop Loss Rs265 | Return 11%
Suprajit Engineering witnessed a convincing breakout after trading at lower level towards 234 mark in earlier session marking an end of the consolidation phase.
In Thursday’s trade, stock witnessed a strong volume breakout coupled with an upward rally in price. The stock continued the upward trend towards the weekend session and gained about 6 per cent on weekly basis.
After closing convincingly higher than the opening level on daily basis, it formed a strong bullish hold pattern on daily price chart indicating a continued momentum in next trading session.
The technical outlook suggests a support for uptrend movement as current price makes a good buy with RSI at 54 followed by bullish crossover as price started to trade above its EMA. The stock is facing an upper resistance at 337 and its immediate support level is seen at 279.
We have a BUY recommendation for Suprajit which is currently trading at Rs. 280.9.
Hindustan Zinc Ltd: BUY| Target Rs322 | Stop Loss Rs. 280| Return 10%
Hindustan Zinc made a strong uptrend after consolidating at a lower level for several periods, thus ending the bear phase after witnessing a crucial volume breakout coupled with price movement.
The stock continued to trade with a positive bias on closing basis despite marginal hiccup since then. On the daily price chart, the stock formed a cup & handle kind of pattern inclined towards uptrend regime going forward coupled with strong volume support.
Further, the stock is currently trading at a favourable price range followed by price trading above its 20-day exponential moving average which is a positive signal. The stock facing a resistance level at 330 and support at 281, 273 level.
We have a BUY recommendation for Hindustan Zinc which is currently trading at 294.5
State Bank of India: SELL| Target Rs263 | Stop Loss Rs295 |Return 5%
SBI continued to trade on negative trajectory throughout the trading session making a month low at 274 level. Since building a peak at the Rs315 level, it failed to cohere on that level and remained under pressure backed by growth in sell volume.
On the weekly price chart, the stock formed a bearish candlestick pattern which is expected to keep the stock under consolidation phase without easy breakout in the short-term.
Further, the price is currently below its 50-days EMA, indicating a negative outlook going forward. Further, the bearish crossover coupled with negative market sentiment is more likely to keep the stock under pressure.
The stock is facing its resistance at 291 level while the support level is seen at 269. We have a SELL recommendation for SBI which is currently trading at Rs. 278.7.
Asian Paint Ltd: SELL| Target Rs. 1090 | Stop Loss Rs1150 |Return 3%
Asian Paint traded on sideways direction during this week’s session inclined towards negative trajectory despite gaining a momentum during on closing week but lost about 2 per cent on weekly basis with a negative bias.
Further, the stock witnessed a substantial rise in volumes (sell) comparing to buy volume which further added a negative outlook going forward.
On the weekly price chart, the stock witnessed a reversal pattern which suggests a short-term consolidation at regime coupled with a bearish crossover of MACD at1.36 below Signal Line at 3.22.
Further, the stock is currently trading below its 50-days EMA which indicates stock being traded at the lower band with a negative outlook. The stock is currently facing a resistance at 1159 level, while the support level will be seen at 1130
We have a SELL recommendation for Asian Paint Ltd. which is currently trading at Rs. 1140
Disclaimer: The author is Founder & CEO, 5nance.com. 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.
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