Nifty likely to make a dash towards 9,600; 5 stocks which can give up to 13% return

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The Nifty50 hit a fresh record high of 9,532.60 last week but witnessed some selling pressure towards the end of the week. The index closed below its 5-days exponential moving average (DEMA) placed at 9,446 on Friday.

Technically speaking, due to small correction happened in the last week, Nifty50 formed a ‘Doji’ pattern on the daily candlestick charts. An occurrence of such pattern after a strong rally indicates uncertainty in the market.

Investors are advised to stay long on the market as there are no diverse trends showing up which suggests that a correction is in the offing. The index could well make an attempt to hit its next crucial resistance level of 9,600.

“Going ahead, 9400 – 9372 would be seen as a crucial as well as strong support zone for the index. As long as Nifty manages to defend this support, we would continue with our optimistic stance on the market,” Sameet Chavan, Chief Analyst Technical, and Derivatives, Angel Broking Pvt Ltd told Moneycontrol.

“In fact, we are of the opinion that if there is any decent correction has to happen, it will most probably happen only after touching the magical figure of 9,600 (which is the 161% reciprocal retracement of a corrective move seen from 8968.70 to 7893.80),” he said.

Considering the recent activity in individual stocks, Chavan advises traders not to take aggressive positions in the market and one needs to be very selective while picking up individual stocks.

Top 5 stocks which are likely to give up to 13 percent return in the short-term:

Analyst: Sameet Chavan, Chief Analyst Technical, and Derivatives, Angel Broking Pvt Ltd

Dish TV: BUY| Target Rs106| Stop Loss Rs91| Time horizon 5 sessions| Return 7%

The stock has been forming a strong base around its multiple support zone of 92 – 94 since last three weeks. Last week, we witnessed a decent breakout from this small range along with the positive crossover in the ‘RSI-Smoothened’ on the daily chart. We recommend buying this stock for a target of Rs.106 by keeping a strict stop loss at Rs.91.

Siemens: BUY| Target Rs 1510| Stop Loss 1308| Time horizon 14-21 sessions| Return 9%

We have been quite upbeat on this stock since the last couple of months and have been continuously recommending from the level of 1200. Recently, stock prices corrected a bit after hitting a new 52-week high of 1471.35.

We believe that this corrective move was just a pull back and the stock is likely to resume its uptrend quite soon. Traders are advised to buy with a target of Rs.1510 in coming 14 - 21 sessions. The stop loss should be fixed at Rs.1308.

Fortis Healthcare: Target Rs230| Stop Loss Rs193| Time 2-3 weeks| Return 13%

The stock has undergone a massive price correction in the recent past. As a result, the stock prices have come back to its strong support of daily ’89 EMA’ placed at 195. On Friday, we witnessed a good recovery after testing this support along with the rise in volumes.

Thus, we expect the stock to resume its uptrend soon. One should look to buy for a near-term target of Rs.230 in coming 2 – 3 weeks. Stop loss can be placed at Rs.193.

Brokerage: SMC Capital

Canara Bank: BUY| Target Rs380| Stop Loss Rs340| 1-2 months| Return 3.5%

The stock closed at Rs367.60 on 19th May 2017. It made a 52-week low at Rs171.29 on 17th May 2016 and a 52-week high of Rs416 on 05th May 2017. The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs294.95.

It has formed Inverted head and shoulder pattern, which is bullish in nature. Therefore, one can buy in the range of Rs350-360 levels for the upside target of Rs375-380 levels with a stop loss below Rs340.

Container Corp: BUY| Target Rs 1260| Stop Loss Rs1145| 1-2 months| Return 5%

The stock closed at Rs1,198.20 on 19th May 2017. It made a 52-week low at Rs844.44 on 21st December 2016 and a 52-week high of 1240 on 20th April 2017. The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs1,058.44.

It has formed a double bottom pattern on the charts, which is bullish in nature. Moreover, oscillators are also supporting its northward movement.

Therefore, one can buy in the range of Rs1,180-1,185 levels for the upside target of Rs1,250-1,260 levels with a stop loss below Rs1,145.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.