Achin Goel
The Nifty opened Wednesday on a positive note and remained volatile throughout the trading session. It rose to an intraday high of 10,893 but failed to cross above 10,900 levels.
On the daily chart, if formed a red candle even though the Nifty closed with gains of nearly 14 points. This is because the closing level was lower than the opening level.
However, the trend remains positive as no reversal of pattern is visible on the daily chart. The index is trading well above its 20-day exponential moving average (EMA) and 50-EMA, which indicates a bullish crossover.
Momentum oscillator relative strength index (RSI), both on a daily as well as weekly charts, signalling a bullish crossover. This speaks about the existence of bullish momentum in the short term.
The trend is expected to remain positive till Nifty holds above its recent lowest closing point which is pegged at 10,767. A fall below 10,767 will strengthen the bears and the Nifty fall if it sustains below it. Till then investors can hold on to their long positions for an upside target of 10,910.
Here is a list of top five positional calls that could return 10-22 percent in the short term:
Parag Milk Ltd: Buy| Target Rs 392| Stop Loss: Rs 329| Return 12%
On the weekly chart, the stock formed a ‘Hammer’ candlestick pattern which is an indication of a bullish reversal. Again, on the daily chart, the price has moved above its range-bound pattern which suggests growing optimism in the stock.
In addition, the price has so far sustained above the 20-days moving average (DMA). Traders can accumulate the stock in the range of Rs 345-350 for the target of Rs 392 and a stop loss below Rs 329.
Reliance Capital Ltd: Buy| Target Rs 471| Stop Loss: Rs 403| Return 11%
On the weekly chart, the stock formed a ‘Dragonfly Doji’ pattern which suggests that demand exists at lower levels. In addition, the price has moved above its 50-days moving average (DMA) and the momentum indicator, RSI (14) on the weekly frame is in a bullish crossover with a current reading at 45.74. The weekly MACD is also in a positive crossover.
Traders can accumulate the stock in the range of Rs 420-425 for the target of Rs 471 and a stop loss below Rs 403.
Titan Company Ltd: Buy| Target: Rs 1,010| Stop Loss: Rs 870| Return 10%
The price has moved above its recent consolidation pattern. On the lower end, the price has found support above 61.80% of the previous rise from Rs 752 to Rs 999.
In addition, on the weekly chart, the price has formed a ‘Hammer’ pattern which suggests growing optimism in the stock. The momentum oscillator, RSI (14) has come out from the oversold zone.
Traders can accumulate the stock in the range of Rs 910-916 for the target of Rs 1,010 with a stop loss below Rs 870.
Lupin Ltd: Buy| Target Rs 954| Stop Loss: Rs 824| Return 10%
The price has moved above the previous peak on the daily chart. The rise in price was backed by increased volume which suggests growing optimism.
In addition, the price has moved above the falling trend-line which indicates a reversal of the falling trend. Moreover, a momentum indicator, RSI (14) is in a bullish crossover and rising on the daily chart.
Traders can accumulate the stock in the range of Rs 860-868 for the target of Rs 954 and a stop loss below Rs 824.
Camlin Fine Science Ltd: Buy| Target Rs 112| Stop Loss: Rs 84| Return 22%
On the weekly chart, the stock has given a breakout from its range-bound pattern, which suggests growing optimism in the stock. On the other hand on the daily chart, a higher trough is observed which suggests waning bearishness.
Moreover, a momentum indicator, RSI (14) is in a bullish crossover and rising on the daily chart. Daily MACD has entered in the positive crossover.
Traders can accumulate the stock in the range of Rs 90-92 for the target of Rs 112 and a stop loss below Rs 84.
Disclaimer: The author is Head of Wealth Management and Financial Planning, Bonanza Portfolio 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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