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Last Updated : Sep 12, 2019 08:42 AM IST | Source: Moneycontrol.com

Podcast | Stock picks of the day: Sit tight! Nifty Midcap Index gives breakout on daily charts

Any big move on the higher side should be expected if Nifty50 closes above 11,200 levels on a sustained basis.

Moneycontrol Contributor @moneycontrolcom
 
 
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Rohan Patil

A recent price progression in the benchmark index, Nifty50, has given a downward falling trendline breakout, which is made from joining a high of July 5 on the daily interval chart.

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For the past couple of days, the Nifty pack has managed to close above the 11,000-mark, which is further supported by a positive market breadth.

The index is trading above all its crucial short term moving averages such as 20-day moving average (DMA), 5-day exponential moving average (EMA) and 13 EMA which is positive sign for prices.

Currently, the Nifty50 pack is trading in the band of 50 and 100-EMA which is placed at 11,200 (50-EMA) and 10,800 (100-EMA) on the weekly timeline charts.

The Nifty Midcap Index has given a breakout from the bullish inverted head and shoulder pattern on the daily charts, while Nifty Smallcap index is on the verge of developing the same.

In case Nifty penetrate below 10,800 and sustain there for a couple of days on a closing basis, the selling pressure is likely to get extended towards 11,640-11,500 levels which cannot be ruled out.

However, any big move on the higher side should be expected if Nifty50 closes above 11,200 levels on a sustained basis.

Here is a list of top two stocks which could give 6-9% return in the next three-four weeks:

Eicher Motors: Buy | LTP: Rs 17,013.65 | Target: Rs 18,540 | Stop Loss Rs.16,160 | Upside 9 percent

Positive price action on September 11 pushed the stock above its short term exponential moving average (20 EMA) on the daily interval.

The current candlestick formation in the weekly chart (Bullish Harami Pattern) suggests formation of a near-term bottom in prices.

The momentum oscillator RSI (14) observation is suggesting a reversal in the trend from bearish to bullish as indicator reversed from an oversold zone which is currently reading above 30 levels with positive crossover on the weekly interval chart.

Traders can accumulate the stock in the range of Rs 1,520 - 1,540 for the target of Rs 1,654 with a stop loss below Rs 1,485.

Ujjivan Financial Services: Buy | LTP: Rs 315.60 | Target: Rs 336 | Stop Loss: Rs.302 | Upside 6.50 percent

After a prolonged consolidation, prices have given a breakout from the short-term trend line on the daily interval. A recent price progression suggests that the stock is in an accumulation phase.

The price is trading above all its short and medium exponential moving averages on the daily scale, which is a positive sign for the stock.

Momentum oscillator RSI (14) is in a bullish range shift mode, which is reading above 60 levels with positive crossover.

Traders can accumulate the stock in the range of Rs 1,520 - 1,540 for the target of Rs 1,654, and a stop loss below Rs 1,485.

(The author is Technical Research Analyst, 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.

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First Published on Sep 12, 2019 08:42 am
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