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Nifty likely to face resistance around 10,110; 5 stocks which can return up to 10%

On the weekly basis, the Nifty50 touched an all-time-high at about 10,110 mark but failed to cohere at that level.

July 30, 2017 / 09:52 AM IST
 
 
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By Dinesh Rohira

Despite a sluggish trade toward the weekend session, Nifty50 managed to hold above a mounting 10K mark indicating a strong sentiment in the market going forward.

On the weekly basis, the Nifty50 touched an all-time-high at about 10,110 mark but failed to cohere at that level.

However, Nifty breached its three-month ascending price channel on the daily chart, indicating another breakout if it manages to decisively breach above 10,160 mark to extend up to 10,350 level.

On the weekly chart, Nifty formed a bearish shooting star pattern, which indicates a weak conviction at the current level and is expected to witness a short-term reversal in the uptrend.

Close

On the Moving Average Analysis, the EMA indicates an immediate support level at 9,950 and 9,920, while the resistance level will be tested at 10,090 & 10,110 level.

Regardless of closing with a negative bias in Friday’s trade, which indicates a short-term consolidation at the sphere, the long trajectory is inclined towards to uptrend regime if it manages to break out through 10,110 level on a closing basis to trade above 10,350 mark.

Here is a list of top five stocks which can give up to 10 percent return in short term:

V-Guard Industries Ltd: BUY | Target Rs. 213 | Stop-loss Rs180 |Upside 10 percent

V-Guard took a reversal trend after persisting at consolidation phase decisively trade on positive trajectory thereon and made high of 197 this week.

The stock formed a bullish price pattern on the daily chart which suggests that an upward movement in the upcoming sessions, as price started to trade above its initial closing level.

The RSI of stock stood on positive cues at 67.6 which suggests a price trading a resistance level coupled with strong buying sentiment at this level.

Similarly, the crossover of MACD at 1.8 of stock from its signal line is giving a strong bullish outlook. On the basis moving average, the stock is currently trading above its 50-days SMA indicating a positive sentiment.

The stock will witness immediate support at 183 level while the upper circuit will test at 201 level. The breakout from this level will build next bull rally in next upcoming session to trade at 210-220 mark.

We have a BUY recommendation for V-Guard which is currently trading at 193.10

Deepak Fertilizers & Petrochemicals: BUY| Target Rs389 | Stop-loss Rs 330| Upside 10 percent

Deepak Fertilizer gained about 14 percent on the weekly basis and closed with positive trajectory on the backdrop of volume growth witnessed during Wednesday’s session.

The stock traded on sideways direction despite gaining a volume in the earlier trading period but managed to decisively breach its resistance level on a closing basis.

The stock formed bullish chart pattern indicating uptrend momentum after registering a sharp rally which is expected to prolong given the volume support.

The RSI of stock stood at 70, which indicates a positive sentiment towards price coupled with a bullish crossover of MACD at 15.5 from Signal Line at 9.8.

Further, the EMA has strong support for the uptrend movement with next immediate support level seen at 337, while the upper resistance will be tested at 368 level. The breakout from this level is expected to catch hold of its peak at 369 level.

We have a BUY recommendation for Deepak Fertilizer which is currently trading at Rs. 355.75

Vedanta Ltd: BUY| Target Rs290| Stop loss Rs. 260|Upside: - 6 percent

After consolidating at lower regime towards 217 in the early period, the stock gained an upward reversal movement which contributed the broader momentum in price and volume in current trading session to trade on positive trajectory although it witnessed correction at a certain level.

On weekly basis, the stock gained almost 2 per cent despite closing on a negative bias as it failed to sustain early gain.

Technically, Vedanta is at uptrend regime with RSI at 62 suggesting a strong buying sentiment at current price band coupled with MACD trading above its Signal Line which supports the bullish regime.

Further, the moving average analysis suggests a strong support for upward movement as price started to trade above its 50-day EMA. The stock will witness major support level at Rs265 while the resistance level will be tested at Rs285.

The possibility of breakout remains inclined towards uptrend which supports the next leg of the trend.

We have a BUY recommendation for Vedanta which is currently trading at Rs. 274.60

Larsen & Toubro Ltd: BUY| Target Rs1220| Stop loss Rs1130|Upside: - 5 percent

Ahead of earnings disclosure on Friday’s trade, a sell off pressure during the trading session retreated the price towards 1159.10 despite gaining a momentum on the previous session through volume uptick.

The stock continued on positive trajectory almost throughout the trading session after consolidating at a lower level during the earlier month.

On the daily chart, it is at the edge of forming a “Cup & Handle” pattern, which signifies a possibility of a major breakout from 1201 level which is an upper base.

The RSI at 59.7 indicates a price trading at favorable buy regime, while the crossover of MACD at 7.32 from its Signal Line at 5.1 indicating bullish regime in the upcoming session.

Based on EMA, the stock will witness a major support level at 1071, while the resistance level will be tested at 1193. The possibility breakout upon pattern confirmation is expected to lift the price towards 1210 level.

We have a BUY recommendation for L&T Ltd. which is currently trading at Rs. 1159.10

Dabur India Ltd: BUY| Target Rs. 325 | Stop-loss Rs295 |Upside: - 5 percent

Regardless of trading on consolidation mode over a month, the Dabur India gained its momentum after making low at Rs256 to register a 52-weeks high at a Rs313 level to move on uptrend regime.

Although the stock witnessed a marginal correction it gained about 4 per cent on weekly basis. On the daily chart, the stock formed like a bullish engulfing pattern which indicates an uptrend movement to prevail over a timeframe.

The technical outlook for stock suggests a strong upward trend with RSI at 70, indicating a strong buy regime, while the MACD at 4.7 shows a crossover just happened from its Signal-Line at 4.5 giving a bullish rally in coming session.

According to exponential moving average analysis, it indicates a strong uptrend with a major support level at Rs302, Rs290 with upper resistance level at Rs320.

We have a BUY recommendation for Dabur India Ltd which is currently trading at Rs. 310

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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