By SMC Global
Last week markets mostly traded sideways but the technical and the derivative data indicates positive move to continue. In the recent consolidation, we have not seen liquidation on positions which indicates rollover over long position is still held in the system.
Put writers were active in recent trading and mostly sold 9,600 and 9,500 strike puts. However, 9,700 call strike has maximum open interest, so this level should act as some resistance.
However, looking at futures open interest and other derivative data we expect Nifty to break 9,700 and moving towards 9,750 in the expiry week and any dip should be used as buying opportunity. The level of 9620 to 9600 spot levels should act as strong support going forward.
Here is a list of top five stocks based on technical parameters which could give up to 11 percent upside in the short term:
Apollo Tyres: BUY| Target Rs287| Stop Loss Rs245| Upside 10%
After witnessing a sharp recovery from Rs220 levels towards Rs260 levels, the stock went into consolidation and traded in a thin range of Rs250-260 for more than 7 trading sessions.
However, in Tuesday’s session once again buying interest was seen coming in the scrip as the stock rose high above the resistance level of Rs260 along with larger volumes.
Moreover, on the daily charts, the stock has formed a Bullish Flag formation and has given a fresh breakout. Traders can accumulate the stock in a range of Rs262-260 for the upside target of Rs287 and a stop loss below Rs245.
Grasim Industries: BUY| Target Rs1,250| Stop Loss Rs1075| Upside 10%
After testing Rs1,200 levels, the stock has continuously traded lower and took support around Rs1,100 level in the recent past. On the daily charts, it has also formed a double bottom formation around Rs1,100 levels and shown recovery from there.
Moreover, it has also managed to close above its falling trend line of previous fall along with the formation of W pattern on the daily charts which signals bullishness in prices towards Rs1,200 levels for coming sessions.
Traders can accumulate the stock in a range of Rs1,135-1,145 for the upside target of Rs1,250 with a stop loss below Rs1,075.
Tata Steel: BUY| Target Rs575| Stop Loss Rs490| Upside 10%
The stock has been continuously maintaining its uptrend ever since it has recovered from Rs440 levels. Recently, the stock has given a fresh breakout above Rs510 levels and sustaining well above it.
Moreover, on the daily charts, it has also formed inverted head & shoulder formation and given breakout above its neckline which again supports the next up move for the stock.
Traders can accumulate the stock in a range of Rs520-525 for the upside target of Rs575 with a stop loss below 490.
ACC: BUY| Target Rs1,780| Stop Loss Rs1575| Upside 8%
The stock has taken a support at its 50-days EMA near Rs1,590 levels and formed a triple bottom formation on the daily charts. In the recent past, it has been consolidating in a thin range of Rs1600-1650 and has now given a fresh breakout.
Moreover, a breakout in prices is also getting well supported by positive divergence in oscillators like RSI and Stochastic. Traders can accumulate the stock in a range of Rs1645-1655 for the upside target of Rs1780 and a stop loss below Rs1575.
Aditya Birla Nuvo: BUY| Target Rs1880| Stop Loss Rs1590| Upside 11%
The stock has formed an inverted head and shoulder formation on the daily charts and is on verge of giving fresh breakout above its neckline.
Moreover, in the past session, the larger volumes along with the rise in prices suggest that the stock has more room for further upside going forward.
In addition, secondary indicators like RSI and Stochastic are also signalling positive moves for the stock going forward. Traders can accumulate the stock in a range of Rs1690-1700 for the upside target of Rs1880 and a stop loss below Rs1590.Disclaimer
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