A move above 11,620-11,590 can trigger short covering rallies to the upper end of the range which is 11,850. Any significant move will be visible on a breakout on either side from this range.
Nifty50 index snapped its two-day losing streak and closed just a shade below 11,800 levels on June 25. The index closed above most of its short-term moving averages.
A move above 11,620-11,590 can trigger short covering rallies to the upper-end of the range which is 11,850. Any significant move will be visible on a breakout on either side from this range.
Moreover, in the last 15 years of trading history, the index has closed the July series in red only once, indicating that July is dominated by the bulls.
Here is a list of top three stocks which could give 6-15 percent return in the next three-four weeks:
State Bank of India: Buy| LTP: Rs 356.50| Target: Rs 380| Stop Loss: Rs 335| Upside 7 percent
On the daily chart, the State Bank of India broke out from a bullish Flag pattern resistance line placed at Rs 348 suggesting a resumption of the uptrend.
Further, a sustained trade above Rs 352 backed by healthy volumes will extend the up move in the stock which could take the index higher towards levels of Rs 370-380.
Moreover, on the weekly chart, it continues to form higher highs and higher lows, confirming the bull trend which is now dominant in the stock.
The Relative Strength Index or the RSI has also turned north after taking support at the 50-level forming a higher low. The stock can be bought in the range of Rs 350-355 for a target of 380 and keep a stop loss below Rs 335.
Voltas: Buy| LTP: Rs 651.30| Target: Rs 710| Stop Loss: Rs 590| Upside 9 percent
On the daily chart, Voltas resumed its upward journey after testing the trendline support placed at Rs 590.
Further, on the weekly chart, it is on the verge of a breakout from a triangle pattern after a series of long lower shadows, indicating higher levels in the coming trading sessions.
A sustained trade above Rs 637 will trigger a breakout from the pattern. The RSI has also turned higher after taking support at the 50-level suggesting higher levels. The stock can be bought in the range of Rs 635 for a target of Rs 680-710, and keep a stop loss below Rs 590.
Shriram Transport Finance: Buy| LTP: Rs 1118| Target: Rs 1,280| Stop Loss: Rs 1,040| Upside 15 percent
On the daily chart, Shriram Transport Finance is on the verge of a breakout from the neckline of an inverted Head & Shoulder pattern placed at Rs 1,125.
A sustained trade beyond the neckline will take the stock higher to levels of Rs 1,210-1,280. Moreover, on the weekly time frame, it has turned upwards after testing the lower end of the broad range now approaching the upper end of the range placed at Rs 1,280.
Further, RSI is also suggesting higher levels in the coming trading sessions as it has turned upwards from the 40 support zone. The stock can be bought in the range of Rs 1,110-1,120 for targets of Rs 1,280, and keep a stop loss below Rs 1,040.
(The author is Senior Manager, Technical Analysis, YES Securities)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.
The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .