Podcast | Stock picks of the day: Go long on Nifty with target at 10,750

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26 Aug, 2025 12:21

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Nandish Shah

Nifty fell more than 100 points on November 12 on the back of profit booking across the board to close at 10,480 levels. Though Nifty has corrected yesterday, Oscillators and Momentum Indicators for Nifty are still showing strength. From the bottom of 10,004, seen on October 26, 2018, Nifty has risen more than 600 points.

Next meaningful support for Nifty comes at 10,400, a 38.2 percent retracement of the entire upswing from the boom of 10,004, seen on October 2018 to high of 10,645 seen yesterday.

Nifty Mid-cap and Small-cap indices outperformed the Nifty during the month of November till now by rising by 1.5 percent and 3.2 percent, respectively, against the Nifty rise of 0.9 percent. Advance decline ratio also remained positive for five out of seven sessions in the month of November.

We believe that current trend of midcap and smallcap out performance is likely to continue for the coming few days.

For Nifty, the range of 10,700-10,760 has to be watched keenly on the higher side. 200-days SMA for Nifty is placed at 10,760 odd levels while previous top on the daily chart is placed at 10,710. This indicates that 10,700-10,760 range would act as a strong resistance.

In the Derivatives also, we have seen long positions being built in Nifty Futures’ during the current series till now. FIIs’ created also created fresh longs in the Index Futures’ during the November. Amongst the Options, Puts have been written at 10400 levels.

Considering the technical and derivative evidences discussed above, we believe that, short-term trend in the Nifty is still bullish and it is likely to find support around 10,400 odd levels. Therefore, our advice would be go long on Nifty with the stop loss of 10400 levels with the Target of 10750 levels.

Here is a list of top three stocks which could give 3-5% return in the next one month:

Tech Mahindra: BUY | Target: Rs  780 | Stop loss: Rs 690 | Return 8%

Tech Mahindra is the best performing large cap technology stocks during the CY18 where it gained by 44 percent till date, indicating that stock is in clear uptrend.

After forming multiple bottoms around 20 day SMA, Stock price has given breakout on the daily chart yesterday with higher volumes. Momentum Indictors and Oscillators like RSI and MACD are also showing strength in the stock for the short to medium term.

The stock price is currently trading above its 200 day SMA indicating that it is in uptrend. Therefore we recommend buying Tech Mahindra for the upside target of Rs 780, keeping stop loss at Rs 690.

Hindustan Oil Exploration: BUY | Target: Rs 150 | Stop loss: Rs 128 | Return 10%

Hindustan Oil Exploration (HOEC) has given breakdown on the daily chart yesterday by closing above the strong resistance level of Rs 134 with higher volumes.

Stock price has been outperforming the Nifty midcap and smallcap indices in the current FY18 where HOEC has risen by 3 percent as against the 17 percent and 31 percent fall in the midcap and small cap indices respectively.

Momentum indictors and oscillators like RSI and MACD are also showing strength in the stock for the short to medium term. Therefore we recommend buying HOEC for the target of Rs 150, keeping stop loss at Rs 128.

Tata Communications: BUY | Target: Rs 555 | Stop loss: Rs 490 | Return 8%

Tata Communications has given breakout on the daily chart yesterday by closing above the crucial resistance level of Rs 514 to close at highest level since September 19, 2018.

On the monthly chart, the stock price has made a bullish hammer pattern in the month of October. Oscillators and momentum indicators like RSI and MACD is showing strength on daily charts.

Therefore, we recommend buying Tata Communications for the upside target of Rs 555, keeping stop loss at Rs 490.