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Last Updated : May 22, 2019 09:14 AM IST | Source: Moneycontrol.com

Podcast | Stock picks of the day: Nifty to trade in a broader range of 11,400-12,000 for this week

We expect markets to be on a roller coaster ride within the broader range of 11,400-12,000 for this week as bulls will be in a tug of war with bears to decisively move the market towards new highs.

Moneycontrol Contributor @moneycontrolcom
 
 
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Shitij Gandhi

After a record run to its all-time highs on the back of exit polls for Lok Sabha Election 2019, both Nifty and Bank Nifty reversed their gains in Tuesday’s session to end the day on a negative note on the back of profit booking.

Close

From the derivative front, we have observed call writing in 12,000 call strike which will act as a crucial resistance level for Nifty moving forward.

However, volatility is likely to grip the market at least for the next two trading sessions. Traders will keenly wait for actual results on May 23.

From the technical front as well, we expect markets to be on a roller coaster ride within the broader range of 11,400-12,000 for this week as bulls will be in a tug of war with bears to decisively move the market towards new highs.

Here is a list of top three stocks which could give 11-12 percent return in the next 3-4 weeks:

Siemens: Buy| Target: Rs 1,300| Stop Loss: Rs 1,080| Upside 12 percent

In the recent past, the stock has taken a stunner run from Rs 950 to Rs 1,200 levels in a short span of time. However, we witnessed profit booking at higher levels which took the stock towards Rs 1,060 levels.

For the last one week, we have observed a long build up into the prices as the stock has taken a V-shaped recovery to regain momentum above its key resistance levels of Rs 1,200.

On the broader structure as well, the stock is maintaining its bullish momentum along with the formation of the higher high and higher bottom pattern.

So, traders can accumulate the stock in the range of Rs 1,160-1,180 for the upside target of Rs 1,300 levels and a stop loss below Rs 1,080.

Century Textiles & Industries: Buy| Target: Rs 1,066| Stop Loss: Rs 900| Upside 11 percent

After making a Double Bottom pattern on the weekly charts around Rs 715 levels, the stock bounced back sharply to again surpass above its long-term moving averages.

However, from the last eight weeks, the stock has been consolidating in a range of Rs 880-950 along with consistent buying at lower levels.

This week we have observed consolidation breakout into the prices along with marginally higher volumes which suggest for more upside in coming sessions.

So, traders can accumulate the stock in the range of Rs 960-970 for the upside target of Rs 1,066 levels, and a stop loss below Rs 900.

Muthoot Finance: Buy| Target: Rs 685| Stop Loss: Rs 575| Upside 11 percent

After testing levels of Rs 630 in the recent past, the stock has been consistently trading lower in a downward sloping channel with the formation of lower highs & lower bottom pattern on daily charts.

However, last week it took support at its 100-days exponential moving average on daily interval and gave a V-shaped recovery along with a breakout above the falling trend line of a sloping channel.

The sharp rise in price was witnessed with heavy volumes which suggest that bulls are once again active in this scrip.

Traders can accumulate the stock in the range of Rs 615-620 for the upside target of Rs 685 levels, and a stop loss below Rs 575.

(The author is a Senior Research Analyst, SMC Global Securities Ltd.)

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 May 22, 2019 09:14 am
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