Shitij Gandhi
This week, Nifty indices dragged due to the liquidation of long positions and at the current level, recent development in derivative data is pointing towards caution as there is a probability of further profit booking in coming sessions.
We have seen Call writing and Put unwinding in recent trading sessions where Call writers were seen active in 10,700, 10,800 strikes indicating limited upside. However, the levels of 10500 will remain crucial for this week as indicated by option open interest concentration.
If Nifty falls below the 10,500 then it could slide towards 10,300 on the back of further selling pressure amid profit booking at higher levels. On bounce, the index will face strong resistance at 10,750-10,800.
The options open interest concentration is at the 10,800 Call strike with the highest open interest of above 36 lakh shares. While among Put options, the 10,500-strike has open interest of more than 35 lakh shares.
Here are three top stock trading ideas which can give good returns:
Dredging Corporation: Buy | Target: Rs 415 | Stop loss: Rs 342 | Upside: 12 percent
After taking support around Rs 280, the stock made a rounding bottom pattern on daily charts and surpassed its short-term moving averages.
This week we have observed breakout above the Cup and Handle pattern along with hefty volumes which suggest for short-term pullback in prices. So, traders can accumulate the stock in a range of Rs 370-375 for the upside target of Rs 415 with a stop loss below Rs 342.
Filatex India: Buy | Target: Rs 59 | Stop loss: Rs 49 | Upside: 11 percent
After taking support at its 200-day exponential moving average the stock raised sharply and once again surpassed its short-term moving averages to hold its uptrend with a formation of higher highs and higher lows pattern on daily charts.
Additionally, the stock has also given breakout above the bullish flag pattern in recent sessions which suggest for more upside in prices moving forward. So, traders can accumulate the stock in a range of Rs 53-54 for the upside target of Rs 59 with a stop loss below Rs 49.
Raymond: Buy | Target: Rs: 860 | Stop loss: Rs 730 | Upside: 10 percent
The stock has witnessed a sharp recovery from Rs 600 and tested Rs 780 in a short span of time. However, since then, the stock has been consolidating in a range of Rs 720-780. This week we have observed a fresh breakout in prices after two weeks of consolidation. The breakout has been seen above the rectangle pattern which is generally traded as a continuation pattern.
So, traders can accumulate the stock in a range of Rs 780-790 for the upside target of Rs 860 with a stop loss below Rs 730.
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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