Nifty likely to face resistance around 10,250; 3 stocks which can give up to 13% return

Call writers were seen active in 10200, 10300 strike calls indicating limited upside moving forward which clearly indicates lack of buying interest and discomfort in the market.

On any bounce in prices, the Nifty index will face strong resistance around 10,250-10,300 levels. The Overall data is negative and we can expect more weakness in the coming week. The major support is placed around 10,000-10,050 levels.

Here is a list of top three stocks which could give up to 13% return in the short term:

Eris Lifesciences Limited: BUY| Target Rs895| Stop Loss Rs750| Return 11%

The stock has been seen consolidating in the range of 720-820 from the last three months with multiple supports on the downside placed at its short and long-term moving averages on the daily and weekly interval.

However, last week, the stock has given a consolidation breakout above its strong resistance level of 820 along with higher volumes.

Additionally, the stock has also given a breakout above the rectangle formation on the weekly interval along with positive divergence on secondary indicators like Rsi and stochastic. Traders can accumulate the stock in a range of 805-820 levels for the target of 895 with a stop loss below 750.

Future Lifestyle Fashions Limited: BUY| Target Rs464| Stop Loss Rs380| Return 13%

The stock has been consistently maintaining its bull run and is trading high on the daily and weekly interval forming the higher top and higher bottom formation on charts.

Additionally, the stock has also formed a cup and handle formation on daily interval and also manage to give breakout above the pattern formation with relatively higher volumes. Traders can accumulate the stock in a range of 410-415 for the upside target of 464 and a stop loss below 380.

Chambal Fertilisers & Chemicals Limited: BUY| Target Rs187| Stop Loss Rs152|Return 13%

After testing its 200-day exponential moving average on the daily interval charts, the stock has given a V-shape recovery in prices and formed an inverted head and shoulder formation.

The breakout above the pattern formation has also been seen last week along with consistent buying at lower levels. Traders can accumulate the stock in a range of 165-168 levels for the upside target of 187 with a stop loss below 152.

Disclaimer: The author is Senior Research Analyst, SMC Global Securities Ltd. The views and investment tips expressed by investment experts 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.