However, upside remained capped as participants preferred to book profit ahead of the beginning of earnings season. In the last two sessions, pressure intensified citing not so encouraging TCS results and mixed global markets.
Amid all, Nifty upheld the 10,700 mark and finally settled at 10,794.90; up by 0.6%. We believe the prevailing earnings season could provide the trigger for next directional move as cues are mixed from the global front. Nifty has been hovering in a range and it’s now nearing its breakout. If it manages to cross 10,950, the next target would be 11,100.
On flip side, breakdown below 10,700 would push the Nifty towards 10,500. Meanwhile, stocks are trading volatile and will remain so thus we advise traders to maintaining positions on both sides and keeping leveraged positions hedged.
Here is a list of top three stocks which could give 8-12% return in the next 1 month:
Axis Bank: Buy | Target : Rs 680 | Stop loss: Rs 640 | Return: 3.8 %
Axis Bank has been trading in a broader consolidation range for last four years and looking all set for breakout from the same now. The chart pattern and positioning of confirmation indicators are adding to the positivity.
We advise initiating fresh longs within Rs 650-655 range. It closed at Rs 659.20 on January 14, 2019.
Pidilite Industries: Buy | Target: Rs 1,200 | Stop loss: Rs 1,090 | Return: 6.2 %
After making a new record high, Pidilite witnessed marginal correction and consolidated around the support zone of 100 EMA on the daily chart. It spent nearly three weeks around that zone and witnessed fresh surge on January 14.
All indications are in the favor of strong up move in near future. We suggest accumulating fresh longs as per the mentioned zone of Rs 1120-1130. It closed at Rs 1134.65 on January 14, 2019.
Godrej Industries: Sell January Futures | Target : Rs 500 | Stop loss: Rs 545 | Return: 6.4 %
Godrej Industries rebounded sharply after testing its monthly support zone around Rs 460 and made a high around Rs 561. It has been hovering around that zone for last one month after its failed attempts to sustain above the hurdle of 200 EMA on daily chart. The movement of last two sessions indicates breakdown.
We advise creating shorts in the given range of Rs 529-534. It closed at Rs 525.60 on January 14, 2019.
The author is President of Religare Broking
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