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Last Updated : Oct 14, 2019 07:36 AM IST | Source: Moneycontrol.com

Podcast | Stock picks of the day: Nifty to trade in 11,100-11,600 range with a positive bias

Buying on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 11,600-11,100 with a positive bias.

Moneycontrol Contributor @moneycontrolcom
 
 
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Rajesh Palviya

The Nifty50 started the week on a flat note and traded with extreme volatility on either side but managed to close with gains of over 1 percent for the week ended October 11.

On the weekly chart, the index formed a small Bullish candle with shadows on either side. This indicates indecisiveness amongst the bulls, as well as, the bears regarding the direction of the market.

Close

The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 11,350 level then it would witness buying which would take it towards 11,450-11,580 levels.

However, if the index breaks below 11,180 level then it would witness selling pressure which would take the index towards 11,090-11,000.

The Nifty50 is trading above its 20, 50 and 200-Day SMA's which are important short-term moving average, indicating positive bias.

The Nifty50 continues to remain in an uptrend in the medium-term, so buying on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 11,600-11,100 with a positive bias.

Here is a list of top three stocks which could give 5-10 percent return in the next 3-4 weeks:

Bharti Airtel: Buy | LTP: 382.65 |  Target: Rs 412-422 | Stop Loss: Rs 361 | Upside 10 percent

On the weekly, as well as, on the daily chart, the stock price has decisively broken out from its consolidation range of Rs 340-370 levels on a closing basis and is sustaining above the same.

This breakout, accompanied by an increase in volumes, supports bullish sentiments ahead. The daily, as well as, the weekly strength indicator, RSI, and the momentum indicator Stochastic, are in positive territory which suggests upside momentum may continue in the near term.

The stock price is sustaining well above its 20 and 50 and 100-Day SMA which supports bullish sentiments.

Buying Range: Rs 380-376

Amber Enterprises: Buy | LTP: Rs 928.50 | Target: Rs 995 | Stop Loss: Rs 880 | Upside 7 percent

On the weekly chart, the stock price has decisively broken out from its consolidation range of Rs 800-880 levels on a closing basis and is sustaining above the same.

This breakout, accompanied by an increase in volumes, supports bullish sentiments.

The daily, as well as, weekly strength indicator, RSI, and the momentum indicator Stochastic, are in positive territory which supports upside momentum to continue in the near term.

The stock price is sustaining well above its 20 and 50 and 100-Day SMA which supports bullish sentiments going ahead.

Buying Range: Rs 920-900

Hindustan Unilever: Buy | LTP: Rs 2,004.75 | Target: Rs 2,110 | Stop Loss: Rs 1,925 | Upside 5 percent

On the weekly chart, the stock price has decisively broken out from its consolidation range of Rs 1,660-1,880 levels on a closing basis and is sustaining above the same.

This breakout, accompanied by an increase in volumes, supports bullish sentiments. The daily, as well as, weekly strength indicator, RSI, and the momentum indicator Stochastic, are in positive territory which supports upside momentum to continue in the near term.

The stock price is sustaining well above its 20, 50 and 100-Day SMA which supports bullish sentiments ahead.

Buying Range: Rs 2,000-1,960

(The author is Head Technical & Derivatives Research, Axis Securities)

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.

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First Published on Oct 14, 2019 07:36 am
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