We expect markets to consolidate in the range of 11,800-12,100. Any decisive move beyond this range will add further momentum into the prices.
After hitting a level of 12,100 last week, Nifty indices failed to confirm the attempted breakout and was seen consolidating in the range of 11,850-12,000 in the last three to four trading sessions.
From the derivative front, put writers were seen active in 11,900 put strike (weekly) while marginal call writing was also observed in 12,000 call strike.
Now, for the upcoming sessions, we expect Nifty to face broader headwinds around strong resistance area in zone of 12,050-12,100 which can limit upside.
However, on the downside, 11,800 levels will be the key levels to watch out for. Nevertheless, the undertone for the Indian markets will likely remain bullish on the broader front as far as we are trading above 11,550-11,500 levels.
But, on a shorter time frame, we expect markets to consolidate in the range of 11,800-12,100. Any decisive move beyond this range will add further momentum into the prices.
Here is a list of top three stocks which could give 7-10 percent return in the next one month:
Container Corporation of India: Buy| Target: Rs 585| Stop Loss: Rs 500| Upside 10 percent
After making a double bottom pattern around Rs 460 levels on the daily charts, the stock took a stunner run towards Rs 530 levels in a short span of time.
At the current juncture, the stock has formed an Inverted Head & Shoulder pattern on the daily interval and also managed to give a breakout above the neckline of the pattern formation.
The stock has also multiple supports on downside placed around its long-term moving averages. Traders can accumulate the stock in the range of Rs 530-538 for the upside target of Rs 585 levels and a stop loss below Rs 500.
Bata India: Buy| Target: Rs 1,520| Stop Loss: Rs 1,330| Upside 8 percent
After testing Rs 1,475 levels in the recent past, the stock witnessed profit booking from higher levels and fell towards Rs 1,300 level to take support at its 100-day exponential moving average on the daily charts.
At the current juncture, the stock has formed a “W” pattern on daily charts. The positive divergence on the secondary oscillators along with a long build up into prices suggests for the next up move into the prices moving forward.
Traders can accumulate the stock in the range of Rs 1,400-1,420 for the upside target of Rs 1,520 levels with a stop loss below Rs 1,330.
Infosys: Buy| Target: Rs 805| Stop Loss: Rs 720| Upside 7 percent
From the last two months, the stock has been trending down on the daily charts. It has formed a lower high and lower bottom pattern.
However, this week the breakout above the falling trend line has been observed as the stock managed to reclaim Rs 750 levels.
Additionally, the stock has also managed to give a breakout above the ascending triangle pattern on a shorter time frame along with marginally-higher volumes which suggest the next up move in prices.
Traders can accumulate the stock in the range of Rs 750-755 for the upside target of Rs 805 levels with stop loss below Rs 720.
(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.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.