Moneycontrol
Get App
Last Updated : Sep 04, 2019 08:13 AM IST | Source: Moneycontrol.com

Podcast | Stock picks of the day: Immediate support for Nifty placed at 10,700

The immediate support is now placed at 10,700, and a breach of which could trigger a fresh round of selling in the coming sessions.

Moneycontrol Contributor @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Shitij Gandhi

Despite recording a positive close last week, Indian markets opened a tad lower on September 3 and witnessed selling pressure throughout the day to end the session with sharp cuts on the back of heavy selloff seen in the PSU Banks.

Close

The Nifty50 failed to hold on to 11,000 levels on a closing basis as fresh short positions created in 10,900 as well as 11,000 call strikes.

From the technical front, the Nifty broke its crucial support placed at 10,830 which was the 61.8 percent retracement level of the recent rally seen from 10,640 to 11,140.

This is again a bearish signal for the markets moving forward. The immediate support is now placed at 10,700 and a breach of which could trigger a fresh round of selling in the coming sessions.

However, on the higher side, 10,900 should act as strong hurdle for the Nifty going forward.

Here is a list of top three stocks which could give 6-11 percent return in the next three-four weeks:

United Spirits Ltd: Buy| Target: Rs 671| Stop Loss: Rs 570| Upside 10 percent

The stock is trading in a rising channel on the daily interval chart with the formation of higher highs and higher bottom which is a bullish sign.

Last week, we have witnessed a fresh breakout into the prices after prolong consolidation seen in the range of Rs 560-600 for more than six weeks.

As the breakout has happened with strong volumes, we expect a follow-through buying into the stock moving forward.

Traders can accumulate the stock in the range of Rs 610-620 for the upside target of Rs 671 levels, and a stop loss below Rs 570.

Relaxo Footwears Ltd: Buy| Target: Rs 500| Stop Loss: Rs 420| Upside 11 percent

In the recent past, the stock took support near its 200-DEMA which was placed at Rs 400 levels, and has given a sharp recovery towards Rs 450 levels in a short span of time.

Since then, the stock went into a consolidation phase and was trading in a thin range of Rs 440-415. We observed a fresh breakout into a stock above the symmetrical triangle pattern on the daily chart.

On the weekly interval as well, the stock is maintaining its bullish trend and holding above all important moving averages.

Traders can accumulate the stock in the range of Rs 450-460 for the upside target of Rs 500 levels, and a stop loss below Rs 420.

Infosys Ltd: Buy| Target: Rs 859| Stop Loss: Rs 780| Upside 6 percent

After consolidating in a broader range of Rs 760-800 levels, the stock managed to give a fresh breakout above the key resistance level of Rs 800 last week along with marginally higher volumes.

Additionally, the breakout has been observed above the Ascending triangle formation which is generally traded as bullish pattern.

Traders can accumulate the stock in the range of Rs 810-815 levels for the upside target of Rs 859 levels, with a stop loss below Rs 780.

(The author is a Senior Research Analyst, SMC Global Securities Ltd)

Disclaimer: 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.

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Sep 4, 2019 08:13 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant