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Last Updated : Sep 04, 2017 09:36 AM IST | Source: Moneycontrol.com

Nifty likely to head towards 10,100; 4 stocks which can give up to 10% return

The Nifty is expected to witnessed uptrend going forward with minor hiccups with weekly trading range bound at 9,800 level on the downside and at 10,082 level on the upside.

 
 
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Dinesh Rohira

5nance.com

The Nifty50 continued to trade sideways on the backdrop of geopolitical issue coupled with F&O expiry last week. The Nifty saw a major setback in Tuesday’s trade, where index shredded about 100 points following a major drop in volume.

However, it decisively rebounded back from its negative trajectory towards the weekend trading session, where Nifty closed above its psychological barrier seen at 9,950 level.

Close

The major breakthrough for bullish sentiment prevailed as the index managed to trade above its 20-Days EMA on closing basis, indicating a bullish trend going forward.

Further on the weekly price chart, the stock formed a bullish candlestick pattern after forming a ‘Hammer’ like pattern in the previous session which is expected to keep bulls at the helm.

With technical trend inclined towards a bullish regime after halted movement, the Nifty is expected to witnessed uptrend going forward with minor hiccups with weekly trading range bound at 9,800 level on the downside and at 10,082 level on the upside.

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

Tata Motors: BUY | Target Rs430| Stop Loss Rs.376 |Upside 10%

Tata Motors witnessed a major breakthrough in its price trend after long halted movement which moved stock towards its 52-week low after marking a high at a Rs452 level in past session.

The trend followed by a major breakout in its volume on several periods that grew at a considerable rate which is expected to end the consolidation phase.

The stock formed a strong uptrend regime with bullish reversal pattern depicted on its weekly chart which is expected to keep the current trend afloat.

Further, the stock is currently trading at favorable price range with RSI indicating a buying regime among bull participant.

Similarly, the price started to trade above its 50-days EMA with a crossover in its price chart from 20-days more likely, thus indicating a strong uptrend regime.

The stock is facing a resistance level at Rs440 witnessed during the previous session and immediate support at Rs369-level. We have a BUY recommendation for Tata Motors which is currently trading at 390.85

Balaji Amines: BUY| Target Rs374 | Stop Loss Rs315 |Return 10%

Despite a major setback in last few trading sessions where Balaji Amines consolidated at a lower level, it recouped its previous loss with strong uptrend during the current trading session and closed on a positive trajectory with a gain of 5 percent at Rs339 level.

The stock also witnessed a movement in volume post consolidation comparing to a previous period where it remained muted.

On the weekly price chart, it formed a bullish belt hold pattern after a minor dip in the previous session, which further extended the uptrend movement towards the closing session.

The technical outlook suggests a similar view with stock trending at favourable buy regime backed by RSI at 63 coupled with MACD above its Signal Line.

Further, the price is currently trading above 20-days EMA and any breakout in short-term from current level is expected to build next lag of momentum.

The stock is currently facing a higher resistance at 390 level and its immediate support level is seen at 310-level. We have a BUY recommendation for Balaji Amines which is currently trading at Rs. 339.4

Oil India: BUY| Target Rs315 | Stop Loss Rs280 | Upside 7%

Oil India picked up a momentum during last week’s trading session on the backdrop of volume growth witnessed in last trading period with about 60 percent rise in volume.

The volume growth aided the price to decisively trade above its 50-days EMA with about 5 per cent gain on the last day, thus giving a smooth breather going forward in session.

The stock continued to form higher tops on its weekly price chart and continued to form strong bullish candlestick pattern despite witnessing a confrontation at higher tops.

Further, the stock started to trade at favourable price regime with momentum inclined towards bullish sentiment coupled with a bullish crossover of MACD through its Signal Line.

The stock is facing a resistance from 20-days EMA at 324 level and the support level is seen at 265. We have a BUY recommendation for Oil India which is currently trading at Rs. 295.2

Power Grid Corporation of India: SELL | Target Rs205 | Stop Loss Rs225 |Return 5%

Power Grid Corporation continued to face confrontation in price trend despite picking the uptrend at a certain level but failed to cohere.

The stock remained under pressure and traded at negative trajectory on the backdrop of lower volume support which further hauled the price.

Further, the stock continued to consolidate at a lower level without any major breakout for uptrend momentum after registering peak at 226 level.

The weekly price chart continued to form a bearish candlestick pattern which is expected to keep the stock under pressure without any major breakout in short-term.

Further, the price is currently below its all level coupled with bearish crossover on its momentum indicator, thus indicating a negative outlook going forward.

The stock is facing its resistance at 226-level while the support level is seen at 202. We have a SELL recommendation for Power Grid which is currently trading at Rs216.5

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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First Published on Sep 4, 2017 09:36 am
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