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Last Updated : Apr 18, 2018 05:23 PM IST | Source: Moneycontrol.com

Podcast | Nifty likely to hit 10,600 by April expiry; top 3 stocks which could give up to 15% return

Here is a list of top three stocks which could give up to 15% return in the short term.

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Shitij Gandhi

The Nifty is trading above the crucial level of 10,500, and hereon the derivative data reflects that there are a lot of outstanding short position in Nifty as well as in Index calls. It looks like, we could expect another round of short covering in the expiry week.

As per current derivative data, Nifty can move towards 10,600-10,650 mark this week as the market undertone remains bullish with the support of consistent short covering.

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Derivative data indicates bullish scenario to continue with Nifty having multiple supports at lower levels around 10,500 & 10,400 spot.

Option writers were seen active in the recent rally. Put writing in 10,400 and 10,500 strikes along with the unwinding in calls will lend support.

We have been continuously seeing open interest addition post expiry which indicates long buildup. On the technical front, 10,475-10,500 spot levels is a strong support zone and the current trend is likely to continue towards 10,600-10,650.

Here is a list of top three stocks which could give up to 15% return in the short term:

NOCIL Limited: BUY| Target Rs260| Stop Loss Rs205| Return 15%

After testing 236 levels in early 2018, the stock witnessed profit booking at higher levels and retraced back towards its 100-days exponential moving average (DEMA) on the daily charts.

Since then, consolidation in the prices kept the stock in a thin range of 185-210 along with consistent buying at lower levels.

This week once again fresh breakout in the price has been observed above 220 levels along with hefty volumes. Additionally, the stock is also trading in a rising channel and forming higher highs and higher lows pattern on daily charts.

Traders can accumulate the stock in a range of 225-230 levels for the target of 260 and a stop loss below 205.

NRB Bearing Limited: BUY| Target Rs188| Stop Loss Rs 154| Return 13%

The stock has been consolidating in the range of 150-165 for more than eight weeks and this week it gave a breakout above the key resistance levels accompanied with larger volumes.

Additionally, the stock has also formed rounding bottom formation on weekly interval along with positive divergence on stochastic and RSI indicators.

The fresh breakout in price can trigger follow up buying the stock moving forward. So, traders can accumulate the stock in a range of 166-170 for the upside target of 188 and a stop loss below 154.

Supreme Industries Limited: BUY| Target Rs1450| Stop Loss Rs1180| Return 13%

After declining from 1450 levels in early 2018 stock took support at its 200 days exponential moving average on a daily interval which is placed at 1160 levels.

Since then the stock went into consolidation phase and has been seen trading in the range of 1160-1250 for more than eight weeks. Now, last week once again fresh breakout in prices has taken stock above its key resistance level of 1250.

Additionally, the stock has also given breakout above the bullish flag formation pattern on a daily interval. Traders can accumulate the stock in a range of 1280-1300 levels for the upside target of 1450 and a stop loss below 1180.

Disclaimer: The author is Senior Research Analyst, SMC Global Securities Ltd. The views and investment tips expressed by investment experts 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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First Published on Apr 18, 2018 08:37 am
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