The immediate resistance is seen around 11,750, and once the Nifty surpasses 11,760, the next meaningful target comes at 12,430
The Nifty50 fell more than 200 points from the intra-day high of 11,573 (hit on March 22) during the last two days to close at 11,354.
Upward sloping trendline adjoining the recent tops on the weekly charts and 38.2 percent retracement of the entire rally seen from 10,585 to the recent top of 11,573 comes around 11,200. In the derivatives also we have seen Put writing at 11200.
The Nifty50 consolidated in the range of 10,600 to 11,100 for three consecutive months from December 2018 to February 2019. In March, the Nifty surpassed the crucial resistance of 11,100, now this level will act as a support.
All indicators suggest 11,100-11,200 level to act as support going forward. The Nifty is currently trading above its 50, 100 and 200-day simple moving average (SMA). The momentum indicators like MACD and DMI have been in a buy mode on weekly charts.
The immediate resistance is seen around 11,750, and once the Nifty surpasses 11,760, the next meaningful target comes at 12,430, which is 138.2 percent Fibonacci retracements to the entire swing from 11,760 to 10,004.
Here are three stock that could return 6-9 percent in 1 month:
ONGC: BUY| LTP: Rs 158.6| Target: Rs 173 | Stop loss: Rs 151| Return: 9 percent
After taking support near its 20-day SMA multiple times during the last one month, the stock price broke out on March 25 to close above its 200-day SMA.
Oscillators and momentum indicators have turned bullish on the weekly charts. Oil and gas as a sector is doing well and is looking good on the charts for the short to medium-term. Therefore, we recommend buying ONGC for the target of Rs 170, and keeping a stop loss at Rs 151.
Mahanagar Gas: Buy| LTP: Rs 972| Target: Rs 1,050| Stop loss: Rs 921| Return: 8 percent
Mahanagar Gas broke out on the daily chart last on March 19 by closing above the resistance level of Rs 966. The stock price reversed northwards to trade at a seven month high, after forming a strong base around 200-day SMA last month.
The primary trend of the MGL is bullish where the stock price is trading above its 20, 50 and 200-day SMA. The momentum indicators and Oscillators like RSI and MACD have turned bullish on the daily and weekly charts.
On the derivatives front, we have seen a long build up in the MGL futures. Therefore, we recommend buying MGL at CMP of Rs 972 and average at Rs 950 for the target of 1,050, keeping a stop loss at Rs 921.
Divis Laboratories: Buy| LTP: 1,705| Target: Rs 1,810| Stop loss: Rs 1,645| Return: 6 percent
Divis Lab is one of the strongest stocks in the pharma pack, which is trading near its all-time high. After consolidation for the last few days, Divi’s lab has given a breakout on the daily chart with higher volumes.
The stock price is trading above its 5, 20 and 200-day SMA indicating a bullish trend for the short to medium term. Therefore, we recommend buying Divi’s lab for the target of Rs 1,810 and keeping a stop loss at Rs 1,645.
The author is Senior Technical & Derivatives Analyst, HDFC Securities.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.The Great Diwali Discount!
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