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Last Updated : Jan 18, 2018 11:00 AM IST | Source: Moneycontrol.com

Record highs to continue for Indian market; 5 stocks which could give up to 12% return

We expect the index to trade on a positive note towards 10,900, so any dip towards 10,700 levels will be again buying opportunity for near term.

 
 
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Rohit Singre

Bonanza Portfolio

The index closed again at lifetime closing high at 10,788 with a gain of 88 points on Wednesday session, forming a big green candle suggesting that bulls again has taken control at the moment.

The index has broken its strong resistance level of 10,700 and now the immediate support is formed around 10,700-10,680 zone. Any dip near the same levels will be a buying opportunity.

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On the higher side, the immediate hurdle is coming around 10,820 and 10,895 so traders can use same levels to book profit in the index.

On the options front, highest open interest still stays at 10500 PE followed by at 10700 PE which will act as strong support for January month and on the higher side, 11000 CE has highest open interest followed by 10800 CE which will act as a strong immediate hurdle in January month.

We expect the index to trade on a positive note towards 10,900, so any dip towards 10,700 levels will be again buying opportunity for near term.

The Nifty Bank also closed on fresh levels and formed 25,900 as immediate and strong support, so again every dip in Nifty Bank will be buying opportunity for the targets of 26,500 & 27,000.

Here is a list of five stocks which can give up to 16% return in short term:

TCS: BUY | Target Rs 3200| Stop Loss Rs 2670| Upside 11%

The stock was trading in the strong range of Rs2100-2800 nearly four years but in current month stock managed to break above the same with good volume.

On the weekly chart, the stock is trading in an upward channel pattern forming the higher top and higher bottom formation. Currently, it is trading near the upper band of the channel so one needs to look at current levels carefully.

The stock is facing strong resistance around Rs2800 but now the same resistance will work as a support for stock because we have witnessed a strong breakout above Rs2800 levels.

Considering above technical setup, one can initiate buy call on the stock at current levels to any dip near Rs2800 for the target of Rs3200 with a stop loss below Rs 2670 on a closing basis.

CONCOR : BUY | Target Rs 1600| Stop Loss Rs 1340| Upside 12%

On the weekly chart, the stock is trading in an upward channel pattern forming the higher top and higher bottom. On the monthly chart, we have witnessed a double bottom breakout above Rs1250 in Aug 2017 with very good volume support which suggests that it will continue its overall uptrend.

Recently, the stock has given four-month consolidation breakout with huge volume hinting that the stock is ready to extend its uptrend. On Wednesday session, we have seen strong buying in the counter from the recent breakout levels which suggest that bulls are still active in the counter.

The momentum traders can take a position in the counter at current levels to any dip near 1400 for the targets of 1540-1600 and a stop out levels can be kept below 1340 on a closing basis.

PVR: BUY | Target Rs 1600 | Stop Loss Rs 1370| Upside 9%

The stock formed base near 1280 levels after correcting from the previous high of 1650 and we have seen a good pullback from 1280 which suggest strong support is formed near 1280 levels.

On the daily chart, the stock broke its Cup and Handle pattern recently with good volume which is bullish in nature. The stock overcame all the strong DMA’s like 200-100-50 that shows strength is back in stock.

The momentum traders can take a position in the counter at current levels to any dip near 1430 for the targets of 1520-1600 and a stop out levels can be kept below 1380 on a closing basis.

JM Financial: BUY | Target Rs 185 | Stop Loss Rs 148 | Upside 12%

The stock is trading in a strong uptrend since long and recent correction from the top can be considered as a healthy correction because it took support at 68.20% retracement zone from April low.

After consolidating at strong support for two months stock has given small breakout above the range with good volume which suggests stock is all set to continue its overall uptrend soon. Also, momentum indicator RSI currently reading at 60 is again bullish zone.

Traders can initiate a long call on stock at current levels to any dip near 158 for the target of 185 with keeping a stop loss below 150 on a closing basis.

DHFL: BUY | Target Rs 680| Stop Loss Rs 570| Upside 12%

The stock is trading super uptrend and current chart structure says the stock is ready to continue its uptrend as we have seen a small range breakout in stock in last week.

The stock showed correction from 679 levels and took a halt at 61.8% retracement support and moved in a consolidation phase, the current breakout from consolidation with good volume suggest a near-term bottom is formed.

Considering technical setup one can initiate buy call on the stock at current levels to any dip near 590 for the target of 680 with a stop loss below Rs 570 on a closing basis.

Disclaimer: The author is Senior Research Analyst, Bonanza Portfolio Ltd. 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.
First Published on Jan 18, 2018 11:00 am
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