Nifty started higher and remained rangebound throughout the session on November 14. On the higher end, the index found resistance around the 38.2 percent retracement level of the previous fall from all-time high of 11,760 to recent low of 10,004.
In addition, 200-EMA on the daily frame acted as active resistance for the rising Nifty. During the day, banking and financial stocks mostly remained in the green. On the other hand, IT and pharmaceuticals dragged.
India VIX remained muted for the day.
On the options front, 11,000 CE ended with most open interest followed by 10,800 whereas 10,000 PE and 10,200 PE ended the session with most open interest.
For the last few days, Nifty has not been able to go above 10,700 where as on the lower end 10,400 remained as the support. Going forward, the trend may remain sideways as Nifty continues to remain in the range of 10,400 and 10,700.
A decisive move above 10,700 may induce a rally towards 10,830 whereas on the lower end breakdown below 10,400 may induce weakness in the market.
Here are the top stock trading ideas which can give good returns in the near term:
Hexaware Technologies: Buy | CMP: Rs 318.15 | Target: Rs 363 | Stop loss Rs 303 | Return 14%
The stock has been consolidating after a sharp correction which means the stock is making base for the next sharp movement. On the other hand a Tweezers Bottom is visible at Rs 308 on the weekly chart of the stock which suggests a rally as long as the recent bottom remains intact.
In addition, a bullish divergence visible on the daily RSI (14) which suggests that the momentum is likely to turn positive in the near term.
Traders can accumulate the stock in the range of Rs 315–325 for the target of Rs 363 with a stop loss below Rs 303.
United Spirits: Buy | CMP: Rs 647.95 | Target Rs 700 | Stop loss: Rs 619 | Return 8%
The stock has given a falling channel breakout on the weekly chart which suggests that the stock may move northwards in the short term. In addition, the stock has moved up above its recent consolidation pattern on the daily chart which suggests growing optimism.
Monthly RSI (14) has entered in a bullish crossover after a long time. All these set ups suggest price appreciation in the coming days.
Traders can accumulate the stock in the range of Rs 645-655 for the target of Rs 700 with a stop loss below Rs 619.
Marico: Buy | CMP: Rs 347.80 | Target: Rs 379 | Stop loss: Rs 329 | Return 9%
The stock after few days’ consolidation has given a highest closing. On a line chart the stock price has moved above its previous inflection point of smaller degree.
On the weekly chart, the stock seen to have moved up as it found support around the lower band of the rising channel. In addition, weekly RSI (14) is in bullish crossover and rising.
The author is Technical Research Analyst at Bonanza Portfolio Ltd
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