Podcast | Stock picks of the day: 'Nifty likely to consolidate in 11,450-11,800 range'

The announcement of rate cut by the Reserve Bank of India (RBI) came in line with the market expectation and thus failed to trigger any major directional move.

Nifty made a new record high at 11,761 and finally closed at 11,665.95 - up 0.36 percent for the week ended April 5.

Going forward, participants will be closely watching the first phase of general elections, scheduled to start from April 11.

Besides, it would mark the beginning of the earnings season and IT majors — Infosys and TCS — will announce their numbers along with several others. On macroeconomic front, they will also be eyeing IIP number and CPI inflation data on April 12.

We expect Nifty to consolidate within 11,450-11,800 zone after the sharp surge while volatility will remain high on stock-specific front as participants would react to list of events and data during the week.

We strongly advocate focusing more on stock selection and trade management aspects. Also, keeping a close eye on global markets for cues.

Here is a list of top three stocks that could give 4-7% return in the next 1 month:

Shriram Transport Finance: Buy| Target: Rs 1,340| Stop-Loss: Rs 1,200| Return 7.2%

Shriram Transport Finance has been hovering in a range Rs 1180-1300 for the past one month and formed a strong base around the support zone of multiple moving averages on the daily chart.

On Monday, it completed the formation of a fresh buying pivot and looks set for fresh up move. We advise initiating fresh longs within Rs 1240-1250. It closed at Rs 1241.75 on April 8, 2019.

Marico: Buy| Target: Rs 380| Stop-Loss: Rs 345| Return 6.4%

We are currently seeing a mixed trend on FMCG front. Among the bullish counters, Marico has surpassed the hurdle of multiple moving averages on the daily chart of late and formed a fresh buying pivot.

We feel it is a healthy buying opportunity and advise traders to initiate fresh longs in range of Rs 354-357. It closed at Rs 359.35 on April 8, 2019.

Sun Pharmaceutical Industries: Sell April Futures| Target: Rs 448|Stop-Loss: 480| Downside 4.3%

Most pharma counters are reeling under pressure and Sun Pharma is no different. It has failed to cross the hurdle of 200-EMA on the daily chart of late and has gradually drifted lower now.

The chart pattern indicates possibility of sharp slide in near future. We suggest traders to use any uptick to go short in the given range of Rs 468-472. It closed at Rs 464.30 on April 8, 2019.

(The author is President - Retail Distribution, Religare Broking Ltd)

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