See Nifty at 11,600; 3 stocks that could return 7-10%

"We reiterate our bullish view on the market and maintain our target of 11,600 on the Nifty," says Jayant Manglik of Religare Broking

August 07, 2018 / 09:37 AM IST
  • bselive
  • nselive
Todays L/H

Jayant Manglik

Religare Broking

The markets traded volatile last week but managed to end with modest gains, thanks to encouraging earnings announcements. The beginning was upbeat, in continuation to the prevailing uptrend, but sentiment was dented in the middle of last week, with a hike in interest rate by the Monetary Policy Committee and weak global cues.

However, a rebound in Friday’s session helped the benchmark index close around the week’s high. Almost all sectors participated in the move, with pharmaceutical, energy and fast moving consumer goods (FMCG) were the top contributors.

We reiterate our bullish view on the market and maintain our target of 11,600 on the Nifty. Besides earnings, participants should closely monitor updates on the progress of monsoon and global cues. Traders should continue their focus on stock selection and prefer private banks, pharma and financial counters for fresh longs.

Here is a list of three stocks that could return 7-10 percent in 1 month:


Pidilite Industries: Buy | Target: Rs 1,210 | Stop loss: Rs 1,050 | Return: 10%

Pidilite Industries, after making a record high in May 2018, retraced gradually in the following month and found support around the support zone of 100-EMA on the daily chart.

It spent nearly two months in consolidation and witnessed a breakout in July 2018. It has again offering buying opportunity with a marginal dip which trader shouldn’t miss.

We advise initiating fresh long positions in the range of Rs 1,090-1,100. It closed at Rs 1,099.75 on August 6, 2018.

Dewan Housing Finance Corporation: Buy | Target: Rs 680| Stop loss: Rs 590| Return: 9.14%

After testing its record high, DHFL has been consolidating in a broader range of Rs 580-640 levels for the last three months or so. The chart pattern combined with the positioning of confirmation indicators are pointing towards the possibility of a fresh breakout in near future.

Traders can accumulate fresh longs in the range of Rs 618-623. It closed at Rs 622.35 on August 6, 2018.

Ujjivan Financial Services: Buy | Target: Rs 430 | Stop loss: Rs 384| Return: 7.5%

Ujjivan has been trading in a broader range for the last two years but now the range is getting narrow with every passing month. It has formed a strong base around the support zone of 100 EMA on the weekly chart and witnessed fresh breakout the same today i.e. on August 6.

All indications are in the favor of fresh surge. We advise traders to use this phase and create fresh longs in the range of 395-400. It closed at 399.25 on Aug 6, 2018.

Disclaimer: The author is President, Religare Broking. The views and investment tips expressed by investment expert on are his own and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.
Moneycontrol News
first published: Aug 7, 2018 09:37 am

stay updated

Get Daily News on your Browser