Amid heavy volatility in the last few days, bulls have succeeded in taking the rally forward. Traders can expect this rally to extend even further in the coming days. An interesting pattern is developing on the weekly chart, where the short-term moving averages are signalling a buy. After consolidating, slope of the averages is again moving in an upward direction.
On the daily chart, there is a positive crossover of major short-term and medium-term moving averages, indicating that short-term trend is clearly up. After such a sharp up move in October 18's trading session, we could see a pause in momentum. But gradually, this market is heading towards 11,716 and 11,788.
11,400 is emerging as a short-term base for the market where a cluster of major short-term moving averages are placed along with the 100 DMA. Any dip is likely to be a buying opportunity for traders until we trade above this level.
Below are the top three short-term trading ideas which could offer 6-7 percent return:
Escorts: Buy | CMP: Rs 646.55 | Target: Rs 685 | Stop loss: Rs 618 | Return: 6%
On weekly chart, RSI has bounced back from the important support levels and new momentum for short term is building up. RSI on the daily chart has started trading in bullish territory. The counter has been trading in sideways zone for the last 20 trading sessions and now broken out of it. Bollinger band on intraday chart also suggesting that fresh buying is emerging for the short term. Traders can consider going long in the stock for short term gain.
Ujjivan Financial Services: Buy | CMP: Rs 308 | Target: Rs 330 | Stop loss: Rs 296 | Return: 7%
After a sharp up move in last few sessions, the stock has retraced till its 50-day exponential moving average and now showing a signal of fresh up move. The counter is placed well above its major short term and medium term moving averages.
The momentum indicators on intraday charts are trading in bullish zone and prices are tagging the upper Bollinger band. Traders can go long in the counter for short term gain.
Avenue Supermarts: Buy | CMP: Rs 1925.60 | Target: Rs 2060 | Stop loss: Rs 1850 | Return: 7%
After two weeks of consolidation, the stock is poised for the breakout. In recent consolidation the counter has settled near its 20-day moving average and now providing a fresh signal of breakout. RSI on the daily chart has formed a bullish reversal pattern. Momentum indicators on intraday charts are trading in a bullish zone.
We believe that the stock is heading towards its fresh 52-week high and can be bought for short term gain.
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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