Hadrien Mendonca
The Indian equity markets extended winning streak for the third consecutive week ignoring the rising crude oil prices scenario.
The Bank Nifty not only held firm above the 200-DEMA but has also surpassed the 25,000 immediate peak of the overall lower top lower bottom structure on the daily chart.
Lower time frame chart analysis indicates that Bank Nifty has also broken out from the Symmetrical Triangle pattern and projections indicate another 300-point upmove from here on.
However, the index has to surpass its resistance of 25,280 before the projection unfolds. However, the cause of concern is Bank Nifty which is trading very close to the 25,250 levels which is the Head and shoulder pattern neckline breakdown that was witnessed in the first week of March which is acting as a strong resistance.
The Nifty50 has to surpass its previous peak of 10,480 on a closing basis for the momentum to sustain or to gather more strength.
Here is a list of top 3 stocks that could deliver up to 8-13% returns in the short term:
Jindal Stainless (Hisar) Limited: BUY| Target 205| Stop Loss 171| Returns 13.2%
The stock has been trading in a declining trend for the past three months and has now finally broken out from a Falling Wedge pattern on the weekly chart.
The price outburst has been accompanied by a strong uptick in traded volumes. The stock has also managed to surpass its long-term 200-DEMA which is placed around the Rs 180 mark. We expect the stock to make an attempt to rise towards its potential target of Rs 205 in the medium term.
IRB Infrastructure Ltd: BUY| Target 302| Stop Loss 258| Returns 11%
The stock could see a multi-year breakout on the cards as a five-year long consolidation phase finally seems to be coming to an end. IRB was stuck in a trading range between Rs 171 and Rs 260 which in turn has formed a Rectangular Channel pattern on the weekly chart.
Projections indicate the stock is all set to move towards its conservative target of Rs 302.
Balkrishna Industries Ltd: BUY| Target 1388| Stop Loss 1235| Returns 8%
The stock has shown immense momentum in the past two weeks and has finally broken out from a continuation pattern on the weekly chart.
Rising volumes and other oscillators also indicate that the current momentum is likely to extend further. We advise investors to keep a strict stop loss of 1235 on every long position in the stock.
Disclaimer: The author is Senior Technical Analyst, IIFL. 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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