Markets have been grinding their way higher for the past four days ahead of the Union Budget. Nifty has formed three consecutive higher tops and higher lows pointing towards positive development.
However, fatigue certainly seems to be setting in. The crucial resistance is seen around the 12,000 while on the downside, 11,800 is the vital support area for Nifty. It would be wise to remain cautious as high levels of volatility is likely.
Bank Nifty, on the other hand, has formed a Doji pattern indicating uncertainty is on the cards. Going forward, the fresh up move is likely only if Bank Nifty breaks past 31,700 while short-term reversal is likely to be triggered if 31,350 is broken on a closing basis.
Here are three stocks that could give 6-8 percent return in the next 3-4 weeks:
UltraTech Cement: Buy| Target: Rs 4,924| Stop loss: Rs 4,505| Upside: 6 percent
The stock has been consolidating for the past three weeks and has finally broken out from a falling channel pattern on the daily chart.
Rising volumes and positive crossovers on the RSI indicates that the current momentum is likely to get extended. Investors should hold on to long positions with a mentioned stop loss on the weekly closing basis
Amara Raja Batteries: Buy| Target: Rs 700| Stop loss: Rs 627| Upside: 8 percent
The stock has been in a declining trend since February 2019 and has finally broken out from a falling channel pattern on the weekly charts.
The stock has also broken out above its 50-DMA and also closed above the same. We expect the stock to make an attempt to move towards its potential target of Rs 700 in the medium term.
Bank of Baroda: Buy| Target: Rs 140| Stop loss: Rs 123.5| Upside: 8 percent
The stock has shown immense strength in the past two weeks and has once again broken out from a falling channel pattern on the weekly chart.
Bank of Baroda has formed a solid bullish candle on the daily chart with rising volumes. Investors should hold on to long 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 experts on Moneycontrol.com are their 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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