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Last Updated : Jun 14, 2019 08:26 AM IST | Source: Moneycontrol.com

Podcast | Stock picks of the day: Nifty likely to see resistance around 12,000-12,030 levels

Going forward, 12000-12030 is the crucial resistance area. A breach past the 11850-11870 zone would drag the Nifty towards 11600-11650 levels.

Hadrien Mendonca
 
 
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Markets recovered in the last hour of trades on June 13 and closed on a flat note. The Nifty50 continues to trade within a 300-points trading range for the third consecutive week.

The index has defended the 11,800 zone and has closed above the 11,900 zone on June 13. However, the market breadth clearly seems to be tilting towards the bears.

Close

The Nifty has formed multiple Doji patterns near its all-time highs on the daily charts. This clearly indicates that the momentum is fading, and only a handful stocks are holding the benchmarks.

Going forward, 12000-12030 is the crucial resistance area. A breach past the 11850-11870 zone would drag the Nifty towards 11600-11650 levels.

The Nifty midcap 100 index which showed signs of a falling trend-line breakout in the previous week has failed to do so which indicates midcaps may see some pressure in the near-term.

Here is a list of top three stocks which could give 3-5 percent return in the next 1 month:

ICICI Lombard: Buy| LTP: Rs 1,149| Target: Rs 1,211| Stop Loss: Rs 1,124| Upside 5 percent

The stock has declined in the recent past and has now reached important support of its 50-DMA which is placed around Rs 1,100-1,120 zone.

The stock has also formed a Hammer candlestick pattern on the daily chart, indicating a short-term reversal is on the cards. Investors can hold long positions with a mentioned stop loss on a closing basis.

KEC International: Buy| LTP: Rs 323| Target: Rs 346| Stop Loss: Rs 313| Upside 7 percent

The stock has shown immense strength in the recent past and has been gaining constantly. KEC has also held above its short-term moving averages. Positive crossovers on the RSI indicates that the current momentum is likely to extend further.

Maruti Suzuki June Futs: Sell| LTP: Rs 6,792| Target: Rs 6,588| Stop Loss: Rs 6,893| Downside 3 percent

The stock has cracked from a Symmetrical Triangle pattern on the daily chart. It has also failed to hold above its 50-DMA which has not turned out to be as a stiff resistance.

The negative crossovers on the RSI indicate that the current weakness is likely to extend further. Investors can hold short positions with a mentioned stop loss on a closing basis.

(The author is a Senior Technical Analyst, IIFL)

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.


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First Published on Jun 14, 2019 08:26 am
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