The market undertone is likely to remain bullish with the support of consistent FII buying and short covering.
Overall derivative data indicates long rollover and most of the Nifty July futures positions has been rolled with the average of 9,530-9,545 futures. Derivative data indicates bullish scenario to continue.
The Nifty has multiple strong supports at lower levels around 9,550, 9,500 and 9,450 spot levels. We can see short covering on every dip as just after the start of July series we have been seeing put writers aggressively selling 9500 and 9600 puts which indicate upside to continue.
Put OI concentration has shifted towards 9,500 from 9,400 after the start of July series in recent trading sessions. In the July option contracts, we are seeing options open interest building up in 9,700 calls and 9,500 puts, which could be the probable range for this expiry.
The market undertone is likely to remain bullish with the support of consistent FII buying and short covering. On the technical front, 9,550-9,560 spot levels are strong support zone and the current trend is likely to continue towards 9,700-9,750.
Here is a list of top five stocks which can give up to 20% return in the short term.
Century Textiles: BUY| Target Rs1,270| Stop Loss Rs1,040| Return 13%
The stock has given handsome returns this year as it surged high from 800 levels to 1200 levels making higher highs and higher lows on the daily chart.
However, amid profit booking, it retraced towards Rs1050 levels and took support at its 100 Days EMA. Now once again buying momentum can be seen in the scrip as it has managed to close above its short-term moving averages.
Moreover, on daily charts, it has formed bullish flag formation and is on verge of breakout. Traders can buy the stock in a range of Rs1120-1125 for the upside target of Rs1270 and a stop loss below Rs1,040.
Jindal Steel: BUY| Target Rs151| Stop Loss Rs110| Return 20%
The stock has been trading in a thin range of 110-130 levels since Feb’17. However, in this consolidation, the stock has taken support at its 100 days EMA multiple times and bounced. In the current scenario, the stock is trading well above its short and long term moving averages with several supports on the downside.
Moreover, it is on the verge of giving consolidation breakout above 130 levels which looks more convincing as positive divergence in RSI and stochastic are also supporting upside.
Traders can accumulate the stock in a range of Rs125-128 for the upside target of Rs151 and a stop loss placed below Rs110.
United Spirits: BUY| Target Rs2875| Stop Loss Rs2300| Return 15%
The stock has made double bottom formation around Rs1850 levels and bounces sharply from there towards 2450 levels. Since then the sock has witnessed minor profit booking which took it towards 2250 levels.
On daily charts, it has made bullish flag formation and has given breakout in the previous session. An additionally large volume along with the rise in price is suggesting that there is more upside for the stock going forward.
Traders can accumulate the stock in a range of Rs2500-2525 for the upside target of Rs2875 and a stop loss placed below Rs2300.
Bata India: BUY| Target Rs650| Stop Loss Rs530| Return 14%
On daily charts stock has made double bottom formation at its 200 days EMA and bounce sharply from there. The large volumes in the previous session along with the steep rise in price suggest that bulls are once again getting active in the scrip.
Moreover, on weekly charts stock has formed bullish flag formation and has given breakout above the falling trend line. Traders can accumulate the stock in a range of Rs570-575 for the upside target of Rs650 with a stop loss below Rs530.
Marico: BUY| Target Rs357| Stop Loss Rs300| Return 11%
The stock has been consistently trading in its bull run and making higher highs and higher lows on daily charts. Furthermore stock has given fresh breakout above its previous resistance of 320 along with decent volumes.
The secondary indicators like RSI and stochastic are also signaling positive moves underneath which again indicates for the next up move going forward.
Traders can accumulate the stock in a range of Rs320-325 for the upside target of Rs357 with a stop loss placed below Rs300.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 decision.The Great Diwali Discount!
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