Kshitij Anand Moneycontrol News
The Nifty rallied a little over 3 percent in the week ended November 30, bring to a close one of the best weeks for the market in recent times. The Sensex broke above 36,000, while the Nifty reclaimed its crucial 200-day moving average and 10,800 in the week gone by.
Rollovers to the December series are also higher than the 3-month average, which suggests that the momentum is likely to continue. Investors who went long on the index should stick to their positions, but volatility may increase ahead of the RBI policy meet and state election results next week.
In the first half of the week, we saw the Nifty finding strong support at 10,500 and it staged a V-shaped recovery thereafter.
Recently, traders were quite skeptical about the Nifty crossing the ceiling of 10,750–10,800. However, on November 29, a massive bump at the opening bell resulted in the index breaking this multiple resistance zone quite convincingly, courtesy a gigantic overnight rally in US bourses.
"Going by the 'Gap Theory', a breach of any major resistance with an upside gap is known as a ‘Breakaway Gap’ and is considered as a sign of strength. Hence, going ahead, we continue to remain upbeat and expect the rally to extend immediately towards 11,000–11,150. On the flipside, Thursday’s gap area of 10,782–10,757 is likely to act as a key support zone now," Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking told Moneycontrol.
"It is also important to take a note that there are many events lined up in the first half of December in India and abroad. Hence, we may see some volatility increasing in coming days," he said.
Chavan added that traders are advised to trade with a proper exit strategy and should keep focusing on individual pockets that may provide better trading opportunities.
Here is a list of top 10 short-term trading ideas by experts which could give 4-10 percent return in the next 1 month:
Brokerage Firm: SMC Global Securities
Federal Bank: Buy| LTP: Rs 85.30| Target: Rs 94| Stop loss: Rs 80| Return: 10 percent
The stock closed at Rs 85.30 on November 30. It made a 52-week low at Rs 67.05 on October 4 and a 52-week high of Rs 116.45 on January 9, this year. The 200-day Exponential Moving Average (DEMA) of the stock on the daily chart is placed at Rs 85.85
The stock was forming a Symmetrical Triangle pattern on weekly charts, which is bullish in nature. It has broken out of the same by gaining over 5 percent in the last week and has also managed to close above the breakout level.
We can also see a rise in volume activity, which indicates buying is more aggressive for the stock. Therefore, one can buy in the range of Rs 83.50-84.50 for the upside target of Rs 92-94 with a stop loss below Rs 80.
Analyst: Dinesh Rohira, CEO, 5nance.com
V-Guard Industries: Buy | Target: Rs 221 | Stop loss: Rs 195 | Return: 5 percent
V-Guard Industries continued to trade with positive momentum for consecutive session after slipping below its 200-day moving average placed at Rs 202 during the last three months.
During the last five sessions, it managed to break out from a crucial resistance of 200-day EMA on closing taking a strong support at Rs 180.
The scrip also witnessed a substantial volume growth in the same period during the upward rally, and also formed a solid bullish candlestick pattern on its weekly price chart.
The momentum indicator outlined a positive divergence in price with its weekly RSI at 56 coupled with MACD making bullish crossover above its Signal-Line on daily basis. We have a buy recommendation for V-Guard Industries which is currently trading at Rs 210.40
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Bata India: Buy| LTP: Rs 1,039| Target: Rs 1,115| Stop loss: Rs 990| Return: 7 percent
This counter registered a strong breakout from its minor consolidation range and appears to be heading for new lifetime highs placed around Rs 1,115.
Hence, traders should adopt a two-pronged strategy on this counter and buy at current prices and prepare to add further on dips between Rs 1,025 – 1,010 for an initial target of Rs 1,115. A stop loss suggested for this trade is below Rs 990 on a closing basis.
Siemens: Buy| LTP: 949| Target: Rs 990| Stop Loss: Rs 897| Return: 4 percent
This counter appears to have registered a price and volume breakout on massive volumes and appears to have started a fresh leg of the up move from the lows of Rs 900.
Usually, after this kind of huge volume, day prices may undergo consolidation. Hence, traders are advised to buy at current prices and add further on dip around Rs 925 with a stop of Rs 897. The expected target for this trade is around Rs 990.
Britannia Industries: Buy| LTP: Rs 3,159| Target: Rs 3,300| Stop loss: Rs 3,037| Return: 4 percent
This counter registered a fresh breakout from its 8-day old minor consolidation range on relatively higher volumes. Hence, traders shall buy now and add further on declines around Rs 3,100 and look for an initial target of Rs 3,300. A stop loss suggested for the trade is Rs 3,037.
Analyst: Rajesh Palviya, Head - Technical & Derivatives Analyst, Axis Securities
Dr Reddy's Laboratories: Buy| LTP: Rs 2,724| Target: Rs 2,830| Stop loss: Rs 2,572| Return: 4 percent
On the daily chart, the stock price has given an Ascending Triangle pattern breakout - a short-term reversal pattern which signals a shift in short-term trend reversal to the upside.
This breakout is accompanied by an increase in volumes which supports the bullish sentiments ahead. The weekly and daily strength indicator such as the RSI and the momentum indicator Stochastic both are in positive terrain which supports upside momentum to continue in near term.
The stock price is sustaining well above its 20, 50 and 100-day SMA which supports the bullish sentiments ahead.
Ajanta Pharma: Buy| LTP: Rs 1,180| Target: Rs 1,255| Stop loss: Rs 1,113| Return: 6 percent
On the daily chart, the stock has formed a Cup & Handle pattern - a short-term reversal pattern which signals a shift in short-term trend reversal to the upside.
This breakout is accompanied with a huge spurt in volumes which supports bullish sentiments ahead. The weekly and daily strength indicator RSI and the momentum indicator Stochastic both are in positive terrain which supports upside momentum to continue in near term.
The stock price has given positive crossover from its 200-day SMA and is sustaining well above its 20, 50 and 100-day SMA which supports bullish sentiments ahead.
Escorts: Buy| LTP: Rs 707.95| Target: Rs 754| Stop loss: Rs 673| Return: 6 percent
On the weekly chart, the stock price has decisively broken out from its four weeks consolidation range of Rs 695-640 on a closing basis and is sustaining above the same.
This breakout is accompanied by an increase in volumes which supports bullish sentiments ahead. The weekly and daily strength indicator RSI and the momentum indicator Stochastic both are in positive territory which supports upside momentum to continue in near term.
The stock price is sustaining well above its 20 and 50-day SMA which supports bullish sentiments ahead.
Bajaj Finance: Buy| LTP: Rs 2,531.35| Target: Rs 2,650| Stop loss: Rs 2,410| Return: 4 percent
On the weekly chart, the stock price has decisively broken out from its consolidation range of Rs 2,475-2,230 on a closing basis and is sustaining above the same.
This breakout is accompanied by an increase in volumes which supports the bullish sentiments ahead. The weekly and the daily strength indicator RSI and the momentum indicator Stochastic both are in positive territory which supports upside momentum to continue in near term.
The stock price is sustaining well above its 20 and 50-day SMA which supports bullish sentiments ahead.
Analyst: Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking
Torrent Pharma: Buy| LTP: Rs 1,773| Target: Rs 1,845| Stop loss: Rs 1,748| Return: 4 percent
The entire pharmaceutical space was buzzing on November 30. In fact, there was some rush seen towards the fag end of the week. In the process, this recent outperformer managed to surpass its hurdle of Rs 1,747 on a closing basis.
The volumes activity has risen substantially to give some weight to the price action. Looking at the daily and weekly chart, we expect a continuation of this ongoing momentum. Hence, we advise going long for a target of Rs 1,845 in coming days. The stop loss can be placed at Rs 1,748.
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his 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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