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Last Updated : Jun 19, 2019 08:30 AM IST | Source: Moneycontrol.com

Podcast | Stocks picks of the day: Call writers were seen active in 11,800 & 11,900 strikes

A break above 11,800 levels could see further buying in Nifty while a break below 11,600 could see bears reclaiming their hold on D-Street

Moneycontrol Contributor @moneycontrolcom
 
 
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Shitij Gandhi

Indian equity markets witnessed volatile swings in Tuesday’s session to end the day on a positive note with Nifty and BSE Sensex snapping four-day losing streak as investors turned cautious ahead of the crucial US Fed meet.

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Though Nifty manage to close below 11,700 (Spot) mark, but at the current juncture derivative data indicates that bulls and bears are likely to continue their tug of war in coming sessions as well.

Call writers were seen active in 11,800 and 11,900 strikes so far this week (weekly contract) while put writing in 11,600 and 11,700 strikes was seen in the monthly expiry contract.

On the technical front as well, The Nifty is trading at a strong support levels of 11,650-11,600 and in the coming sessions, we expect 11,800 on the higher side and 11,600 zone on the downside is very crucial for markets.

A break above 11,800 levels could see further buying in Nifty while a break below 11600 could see bears reclaiming their hold on D-Street.

Here is a list of top three stocks which could give 7-10 percent return in the next one month:

SRF: Buy | Target: Rs 3,300 | Stop Loss: Rs 2,820 | Upside 10%

The stock has been consistently maintaining its bull run since the beginning of the year and has been trading in a rising channel on the daily as well as weekly interval.

However, from the last four weeks we have seen some consolidation within a range of Rs 2,800-2,950 along with consistent buying at lower levels.

In Tuesday’s session, we have witnessed a sharp breakout along with higher volumes which suggests more upside in coming sessions.

From the derivative front as well, long build up is seen in the stock this week which once again points towards the next run-up. Traders can accumulate the stock in range of Rs 3,000-3,010 for the upside target of Rs 3,300 levels, and a stop loss below Rs 2,820.

Indraprastha Gas: Buy | Target: Rs 359 | Stop Loss: Rs 320 | Upside 7%

The stock has given a breakout above Rs 320 levels in the recent past and tested Rs 350 levels thereafter in a short span of time.

However, from the last six to seven trading session, the stock has been trading in a downward sloping channel on the daily interval. It looks like traders are booking profits at higher levels which has taken the stock once again towards Rs 330 levels.

This week a fresh breakout above the Bullish Flag pattern has been observed on the daily charts which points towards the next upswing into the prices.

Traders can accumulate the stock in the range of Rs 335-340 for the upside target of Rs 359 levels, and a stop loss below Rs 320.

Godrej Properties: Buy | Target: Rs 997 | Stop Loss: Rs 858 | Upside 10%

After taking support at its 200-days exponential moving average (EMA), the stock took a stunner rally from 760 to 900 levels in a short span of time.

At the current juncture, the stock has formed an ‘Inverted Head & Shoulder’ pattern on the daily charts and is on the verge of a breakout above the neckline of the pattern formation.

Additionally, the positive divergences on the secondary oscillators also points towards the next up move into the prices in the coming sessions.

Traders can accumulate the stock in the range of Rs 905-915 for the upside target of Rs 997 levels, and a stop loss below Rs 858.

(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 Jun 19, 2019 08:30 am
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