On the downside, the immediate support is placed at 11,500 levels for Nifty while 29,350-29,250 zone will act as a major support for Bank Nifty.
Benchmark index started the monthly expiry week on a negative note and extended its losses for the second consecutive session on the back of hefty profit booking in auto, banking and financial stocks.
On the derivative front, call writers were seen active in 11,700 strikes which now holds with a maximum open interest of more than 53 lakh shares and at the moment will act as a key resistance level from expiry point of view.
However, on the downside, the immediate support is placed at 11,500 levels for Nifty while 29,350-29,250 zone will act as a major support for Bank Nifty.
On the other hand, India VIX is also maintaining well above 24 levels which clearly indicates that volatility will likely grip the market in coming sessions as well with limited upside on cards.
Here are three stocks that could give 6-11% return in the next 1 month:
Hindustan Unilever: Buy| Target: Rs 1,850| Stop Loss: Rs 1,675| Upside 6%
In the last two months, the stock has been under pressure. It is trading in a sloping channel with the formation of a lower high lower bottom pattern on daily charts.
However, in recent weeks, the stock has managed to take support at its 200-days exponential moving average on daily charts and given almost V-shaped recovery from the lower levels with a breakout above the falling trend line of the sloping channel.
From the technical front, the stock is also forming a W-pattern on the daily time frame along with positive divergence on secondary oscillators, pointing towards more upside.
Traders can accumulate the stock in the range of Rs 1740-1745 for the upside target of Rs 1850 levels with a stop loss below Rs 1675.
City Union Bank: Buy| Target: Rs 220| Stop Loss: Rs 193| Upside 7%
The stock has been maintaining its bull run since the beginning of the year and is trading well above its long and short-term moving averages.
At the current juncture, the stock has once again given a fresh breakout above the bullish flag pattern visible on the weekly charts along with marginally higher volumes which suggest for more upside in coming sessions.
So, traders can accumulate the stock in the range of Rs 203-205 for the upside target of Rs 220 levels and a stop loss below Rs 193.
Supreme Industries: Buy| Target: Rs 1,290| Stop Loss: Rs 1,085| Upside 11%
After taking support at its 200-day exponential moving average on the weekly charts, the stock recovered sharply to reclaim Rs 1100 levels once again.
On the daily chart interval, the stock has formed an inverted head and shoulder pattern and is on verge of breakout above the neckline of pattern formation.
Alongside it has also managed to give a consolidation breakout on the shorter time frame. So, traders can accumulate the stock in the range of Rs 1160-1170 for the upside target of Rs 1290 levels and a stop loss below Rs 1085.
(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.