Rupak De
Nifty50 started above previous day high on Wednesday and found resistance at the 88.60 percent retracement of the previous fall from the lifetime high of 11,760 to 10,004.
On the weekly chart, the index has maintained its bullish tone. After breaking above the prolonged consolidation pattern, the index so far has maintained its resilience. In addition, the index has sustained above 13-EMA.
On the option front, maximum open interest (March 28) position is visible in 11,500 CE (call option) (30.18 lakh shares) and 11,000 PE (Put Option) (43.40 lakh shares); followed by 11,600CE (24.59 lakh shares) and 11,500 PE (26.55 lakh shares).
Going forward, the Nifty may find resistance at the 88.60 retracements of the previous fall from 11,760 to 10,004 which is currently pegged at 11,557.
If the index sustains to trade above 11,557, it may induce a rally towards 11,800 levels. Again, any decisive breakout above 11,800 may induce a further rally in the market.
On the other hand, a breakdown below 11,300 may trigger short-term bearishness in the market.
Here is a list of top three stocks which could give a 5-8% return:
ITC: Buy| LTP: Rs 298.75| Target: Rs 322|Stop Loss: Rs 286.80|Return 8%
The stock has given a breakout above its downwards consolidation on the monthly chart which signifies rising bullishness in the stock.
In addition, the stock has already pared loss of previous 5-months in the current month suggesting increased bullishness. The daily price momentum indicator RSI (14) is in bullish crossover and sustaining above 60.
Traders can accumulate the stock in the range of Rs 295-300 for the target of Rs 322 with a stop loss below Rs 286.80.
Ajanta Pharma: Buy| LTP: Rs 1021| Target: Rs 1080-1100| Stop Loss: Rs 989|Return 5-7%
The stock has given an ascending triangle breakout on the daily chart which suggests rinsing optimism in the stock. The price has moved above 38.20 percent retracement of the previous fall from swing high of Rs 1,192 to swing low of Rs 903.
The daily price momentum indicator RSI (14) is in bullish crossover and sustaining above 60. Traders can accumulate the stock in the range of Rs 1,015-1,025 for the target of Rs 1,080-1,100 with a stop loss below Rs 989.
Kotak Mahindra Bank: Buy| LTP: Rs 1351.60| Target: Rs 1460| Stop Loss Rs 1287| Return 8.00%
On the daily chart, the stock has given a Symmetrical Triangle pattern breakout which suggests increased bullishness in the counter.
The stock is seen to have moved above previous swing high. In addition, daily MACD is in a bullish crossover and moved above the line of polarity.
Traders can accumulate the stock in the range of Rs 1,345-1,355 for the target of Rs 1,460 with a stop loss below Rs 1,287.
(The author is a Technical Research Analyst at Bonanza Portfolio Ltd.)
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
