We may see some long unwinding around 11,900-11,950, which will lead to a small correction. Going forward, the support is likely to shift upward to 11,650-11,700
Bullishness continued as Nifty made a record high on the back of positive global cues. On the daily chart, it has recently given a breakout of a smaller degree falling channel that confirms the strong upside momentum.
The index has been moving within a rising wedge on the daily frame. It has been making higher highs and higher lows. On a larger view, we observe that the benchmark index has moved above its previous swing high.
In the recent past, the Nifty has taken support at the lower side of the rising wedge around 11,600 and is likely to reach near its upper side which is pegged around 11,900.
We may see some long unwinding around 11,900-11,950, which will lead to a small correction. Going forward, the support is likely to shift upward to 11,650-11,700.
Here are three stocks that could give 6-7 percent return in the next 1 month:
Hero MotoCorp: Buy| LTP: Rs.2,739.65| Target: Rs 2,950| Stop loss: Rs 2,640| Return: 7.66 percent
The recent rally in the stock has led to a breakout of a falling trend line that suggests increased optimism in the stock. The strong momentum in the auto index also supports bullish bet in the counter.
Traders can accumulate the stock in the range of Rs 2,720-2,745 for the target of Rs 2,950 and a stop loss below Rs 2,640.
IndusInd Bank: Buy| LTP: Rs 1,764| Target: Rs 1,942| Stop loss: Rs 1,749| Return: 10 percent
On the daily chart, the stock has given a breakout from its downwards consolidation that indicates growing optimism in the stock.
In addition, the stock has been making a higher top, higher bottom formation since it broke above the symmetrical triangle pattern on the daily chart. Overall bias seems to be positive.
Traders can accumulate the stock in the range of Rs 1,800-1,820 for the target of Rs 1,942 with a stop loss below Rs 1,749.
HUL: Buy | LTP: Rs 1,737.45 | Target: Rs 1,842 | Stop loss: Rs 1,679 | Return: 6 percent
The stock has moved above a falling narrowing wedge that confirms the reversal of the previous trend on the daily frame.
In addition, in the recent move, the stock has crossed above the previous swing high that again suggests increased optimism.
Daily RSI (14) has moved above previous three swing highs indicating a strong upside momentum. Traders can accumulate the stock in the range of Rs 1,725-1,740 for the target of Rs 1,842 and a stop loss below Rs 1,679.
The author is a Technical Research Analyst at Bonanza Portfolio Ltd.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.The Great Diwali Discount!
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