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Last Updated : Jun 20, 2019 08:20 AM IST | Source: Moneycontrol.com

Podcast | Stock picks of the day: A break below 11,590 could take Nifty towards 11,425

If Nifty crosses above 11,750 levels, a bounce-back towards 11,820 and then possibly 11,870 levels can be expected.

Ashish Chaturmohta
 
 
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After Monday’s fall, there was some respite, but volatility picked up in the next two days. The S&P BSE Sensex rose 66 points while the Nifty50 closed flat at 11691 on June 19.

Even though benchmark indices closed flat-to-higher, big carnage was seen in individual stocks largely from the broader market space. The S&P BSE Midcap and Smallcap both ended with losses of 0.7 percent and 1.4 percent respectively.

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If Nifty crosses above 11,750 levels, a bounce-back towards 11,820 and then possibly 11,870 levels can be expected. On the downside, the market has support at 11,590 levels which is the top of the rising gap. A break below this can take the index towards 11,425 filling the gap area.

In Nifty options, maximum open interest for Put is seen at strike price 11,500 followed by 11,700 while for Call maximum open interest is seen at 12,000 followed by 11,900. Put writing was seen in 11,700 and 11,500 along with Call writing in 11,700.

Here is a list of top three stocks which could give 11-13% return in the next 1 month:

Vinati Organics: Buy| CMP: Rs 2,108| Stop Loss: Rs 2,000| Target: Rs 2,350| Upside 11 percent

The stock has been in an uptrend for the last one year, forming higher tops and higher bottoms on the weekly chart. The up moves have been backed by good volumes, indicating buying participation in the stock.

It recently touched an all-time high of Rs 2,218 and then corrected down towards Rs 2,000 odd levels on below-average volumes. This decline has taken support at a 21-day exponential moving average and resumed its uptrend.

The Relative Strength Index (RSI) has given a positive crossover with its average on the daily chart. Stochastics has given a positive crossover with its average from the oversold zone on the daily chart.

Thus, the stock can be bought at current levels and on dips towards Rs 2,065 with a stop loss below Rs 2,000 and a target of Rs 2,350 levels.

Infosys: Buy| LTP: Rs 751| Stop Loss: Rs 720| Target: Rs 850| Upside 13 percent

The stock has been consolidating for the last five months between Rs 773 and Rs 697 levels at its all-time highs. The recent low of Rs 697 was formed at a 200-day moving average and then it bounced back.

The rally has formed a long body bullish candlestick on daily chart indicating buying participation in the stock. The Average Directional Index (ADX) line, an indicator of uptrend strength, has moved above equilibrium level of 20 with rising Plus Directional line on the daily chart.

The Relative Strength Index has given a positive crossover with its average on the daily chart. Thus, the stock can be bought at current levels and on dips towards Rs 740 with a stop loss below Rs 720 and a target of Rs 850 levels.

ICICI Bank: Buy| LTP: Rs 419| Stop Loss: Rs 405| Target: Rs 475| Upside 13 percent

The stock has been moving in a rising channel in 2018 on the weekly chart. The recent correction from all-time highs of Rs 439 has taken support at previous highs around 410 levels.

Also, the price has taken support at a 21-day exponential moving average and is now trading above it. The stock is showing signs of resumption of an uptrend with a bullish candle and good volumes.

The Relative Strength Index has given a positive crossover with its average on the daily chart. Thus, the stock can be bought at current levels and on dips towards Rs 415 with a stop loss below Rs 405 and a target of Rs 475 levels.

(The author is Head of Technical and Derivatives, Sanctum Wealth Management)

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.
First Published on Jun 20, 2019 08:20 am
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