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Last Updated : Jun 07, 2017 08:40 AM IST | Source: Moneycontrol.com

Nifty likely to make an attempt to hit 9750; 5 stocks which can give up to 13% upside

On the technical front, 9,575-9,600 spot levels are strong support zone for Nifty with current trend likely to move towards 9,700-9,750.

 
 
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By SMC Global

The Nifty is moving up and making new highs almost on a regular basis with a decent addition in open interest indicates strength in the current trend.

The Options writers were seen active last week as put writing in strike prices 9,700, 9,600, 9,500 was seen along with unwinding in calls.

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The foreign institutional investors (FIIs) options data also indicates fresh buying in index calls (9,500, 9,600, and 9,700) post expiry.

In the current scenario, June derivative data is looking stronger than May series as we have been continuously seeing open interest addition post expiry with buying interest by FIIs.

On the technical front, 9,575-9,600 spot levels are strong support zone for Nifty with current trend likely to move towards 9,700-9,750.

Here is a list of top five stocks which can give up to 13% upside in short term:

Balkrishna Industries: BUY| Target Rs1720| Stop Loss Rs1440| Upside 10%

Traditionally, the stock has been trading in a Bull Run and in recent past, it has seen consolidating in the range of Rs1440-1580 for more than one month.

However, in Tuesday’s session, the stock has given a consolidation breakout above its key resistance level of Rs1,580 and has also managed to close above that.

The large volumes with the rise in prices along with positive oscillators suggest further rally for the stock going forward. So, traders can accumulate the stock in a range of Rs1550-1585 for the upside target of Rs1720 with a stop loss below Rs1440.

Varun Beverages: BUY| Target Rs565| Stop Loss Rs485| Upside 9%

The stock has formed an ascending triangle formation on the daily charts and has given a breakout above its key resistance level of Rs500.Moreover, the long-term and short-term moving averages are also well supporting the prices along with positive divergence in RSI.

So, traders can accumulate the stock in a range of Rs515-530 for the upside target of Rs565 with a stop loss below Rs485.

IGL: BUY| Target Rs1245| Stop Loss Rs1020| Upside 13%

In the recent past, prices saw a sharp rally from Rs975 to Rs1070 levels in just four trading sessions. However, after taking a pause, once again upside momentum is seen in stock as it has given fresh breakout above Rs1100 levels in the previous session.

The momentum is likely to remain intact in the coming sessions as well as rising volumes and positive divergences in oscillators are showing strength. Traders can accumulate the stock in a range of Rs1,100-1,120 for the upside target of Rs1,245 with a stop loss below Rs1,020.

Sundaram Finance: BUY| Target Rs1,760| Stop Loss Rs1,510| Upside 10%

The stock has been trading lower in the recent past and fell from Rs1700 to Rs1500 levels. However, prices took support at its 100-DEMA on the daily charts and recovered sharply from there towards Rs1,600 levels.

Also, the stock has risen above its falling trend line which is generally bullish for the stock as it has given breakout above the downward channel. Traders can accumulate the stock in a range of 1620-1640 for the upside target of 1760 with a stop loss below 1510.

KNR Construction: BUY| Target Rs238| Stop Loss Rs195| Upside 13%

The stock has been consistently maintaining its bull run making higher high and higher low formation on the daily charts. In recent fall, the stock has taken support at its 50-DEMA and then bounced back sharply from there.

The secondary indicators like the relative strength index (RSI) and Stochastic are also giving positive divergence on the daily charts indicating strong moves going forward.

Traders can accumulate the stock in a range of Rs210-215 for the upside target of Rs238 with a stop loss below Rs195.

Disclaimer: 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 Jun 7, 2017 08:40 am
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