Jay Thakkar of Anand Rathi is likely to stay within a broader range of 9,500-11,100 in the medium term
Anand Rathi Shares & Stock Brokers
The Nifty is expected to remain volatile for the next one year or till next Samvat. It is less likely that the index will touch a new record high before the next Samvat.
Monthly indicators have gone into sell mode and generally when that happens, the trend continues for 9-12 months. Hence, the correction that started in September is likely to stay till May-September next year.
In the short term, the index seems to have formed a bottom and a bounce back till its 200-daily moving average (10,700) or 50 percent retracement levels (11,050). In the medium term, the index is likely to stay within a broader range of 9,500-11,100. It will be a consolidation phase and volatility is likely to stay.
Here is the list of top three technical picks for Samvat 2075:
NBCC: Buy | Target: Rs 86.96 | Stop loss: Rs 53 | Return: 47.7%
The stock has reversed well with a positive divergence on the daily charts. The stock has started to form higher tops and higher bottoms on the daily as well as hourly charts which is another positive sign for the stock.
So, we recommend buying NBCC for a minimum of 38.2 percent retracement of the entire fall with a stop loss of Rs 53.
CG Power and Industrial Solutions: Buy | Target: Rs 49 | Stop loss: Rs 34.50 | Return: 30.4%
The stock has fallen in an impulsive structure and an A-B-C bounce back of the same is expected.
The momentum indicator has been showing positive crossover with positive divergence thus indicating that the stock has reversed from sell to buy. The 23.6 percent retracement target comes to Rs 49 and the stop loss for the same comes to Rs 34.50.
Lupin: Sell | Target: Rs 800 | Stop loss: Rs 870 | Return: 5.8%
The stock has formed a bearish channel and the momentum indicator has provided a sell crossover on the daily as well as weekly charts. So we recommend selling it for the next swing support as its short term target i.e. Rs 800 with a stop loss of Rs 870.Disclaimer: The author is Head Technical and Derivatives Research - AVP Equity Research at Anand Rathi Shares and Stock Brokers. 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.