11100 is expected to act as immediate resistance for the Nifty. A sustained trade above 11100 may induce rally towards 11300-11400 over the short term.
Nifty closed above the previous swing high after a positive trading session which suggests that the trend is now positive. On the other hand, Nifty has given an ascending triangle breakout on the daily chart confirming the bullish set up for the short term.
The daily RSI is in a bullish crossover and is rising with a current reading of 64.23. The daily MACD is in a bullish crossover and is currently reading above the line of polarity.
On the options front, maximum open interest position is visible in 11,000 CE (34.98 lakh shares) and 10,700 PE (34.88 lakh shares); followed by 11,200 CE (22.72 lakh shares) and 10,400 PE (33.56 lakh shares).
Going forward, 11,100 is expected to act as immediate resistance for Nifty. A sustained trade above 11,100 may induce rally towards 11,300-11,400 over the short term.
On the flip side, a failure to sustain above 11,100 may trigger a long unwinding in the market which may take the Nifty back towards 10,700 levels.
Here is a list of top three stocks which could give 6-7% return in the next 1 month:
Grasim Industries: Buy| CMP: Rs.734 | Target Rs 778| Stop Loss: Rs.710| Return 6%
The stock after a prolong correction witnessed the initial level of a pullback. On the daily chart, the stock price has moved above its previous downwards consolidation which suggests a surge in the optimism among the investor.
The momentum oscillator RSI (14) recovered from the extremely oversold phase. Traders can accumulate the stock in the range of Rs 730-740 for the target of Rs 778 with a stop loss below Rs 710.
Eicher Motors: Buy| CMP: Rs. 21,104| Target Rs 22,400| Stop Loss: Rs.20,400| Return 6%
On the daily chart, the stock has been posting positive close for the last six consecutive sessions which indicates bullishness in the counter.
In its recent move, the stock has moved above its previous swing high on the daily chart. A bullish divergence is visible on the daily momentum indicator RSI (14) which suggests that the expected momentum in price is likely to continue. Traders can accumulate the stock in the range of Rs 21100-21200 for the target of Rs 22400 with a stop loss below Rs 20400.
Bajaj Finance: Buy| CMP: Rs.2,711 | Target Rs 2,900| Stop Loss: Rs 2,629|Return 7%
On the daily chart, the price has moved above the previous swing high which indicates a rise in optimism. The daily MACD is in bullish crossover and is hovering above the line of polarity.
The stock price has been sustaining above 50 EMA on the daily chart. Traders can accumulate the stock in the range of Rs 2700-2720 for the target of Rs 2900 with a stop loss below Rs 2629.
(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.