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Last Updated : Nov 10, 2019 10:56 AM IST | Source: Moneycontrol.com

SRF, ICICI Bank among top 4 stocks which could give 11-23% return in 1-3 months: Here's why

If the Nifty50 sustains above 12,000, the rally could continue towards the all-time high of 12,103 and then towards 12,28-12,350 levels

Moneycontrol Contributor @moneycontrolcom
 
 
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Ashish Chaturmohta

If the Nifty50 sustains above 12,000, the rally could continue towards the all-time high of 12,103 and then towards 12,280-12,350 levels.

However, a close below 11,840 levels, could take the index towards 11,650-11,700 levels, were the earlier resistance zone was and it will now act as support for the market.

Close

In Nifty, November monthly expiry options, maximum open interest for Put is seen at strike price 11,600 followed by 11,500 while for Call maximum open interest is seen at 11,800 followed by 12,000.

Here is a list of top four stocks which could give 11-19 percent returns in the next one-three months:

SRF Ltd: Buy | LTP: Rs 3,135 | Stop Loss: Rs 2,930 | Target: Rs 3,500 | Upside 11 percent

The stock touched a high of Rs 3,086 in July and then corrected down to touch a low of Rs 2,551 in August. For the last four months, the stock has been consolidating between Rs 3,086 and Rs 2,551.

The stock has shown a strong momentum on up moves, and during consolidation which indicates buying participation. It is now showing signs of breakout on the upside.

The price has given a breakout on the upside from the Bollinger Band with the expansion of bands indicating a continuation of the trend in the direction of breakout on the daily chart.

MACD line on the weekly chart has given a positive crossover with its average above equilibrium level of zero indicating a trend change.

The Average Directional Index (ADX) line, an indicator of trend strength has moved above the equilibrium level of 20 with rising Plus Directional line on daily chart.

Thus, the stock can be bought at current levels and on dips towards Rs 3,025 with a stop loss below Rs 2,930, and a target of Rs 3,500 levels.

ICICI Bank: Buy | LTP: Rs 489 | Stop Loss: Rs 460 | Target: Rs 540 | Upside 10 percent

The stock is in an uptrend as it is forming higher tops and higher bottom on the weekly chart. After a week’s negative to sideways correction, the stock is showing a resumption of the uptrend.

The stock hit a new all-time high of Rs 489 in the week, and also closed at a new closing high of Rs 489 level. The price has given a breakout on the upside from Bollinger Band.

The Average Directional Index (ADX) line, an indicator of trend strength, has moved above the equilibrium level of 20 with rising Plus Directional line on the weekly chart. Thus, stock can be bought at current levels and on dips towards Rs 474 with a stop loss below Rs 460, and a target of Rs 540 levels.

HeidelbergCement: Buy | LTP: Rs 190 | Stop Loss: Rs 192 | Target: Rs 235 | Upside 23 percent

The stock touched an all-time high of Rs 215 in May and then corrected down towards Rs 180 levels where it has formed multiple lows.

The stock has been consolidating for the last five months and now showing a breakout on the upside. It has crossed the falling resistance trend line of the correction and closed above it with good volumes.

The price has given a breakout on the upside from Bollinger Band. MACD line on the daily chart has given positive crossover with its average and moved above the equilibrium level of zero indicating a trend change.

Thus, the stock can be bought at current levels and on dips towards Rs 199 for target of Rs 235 levels.

ICICI Prudential Life Insurance: Buy | LTP: Rs 519 | Stop Loss: Rs 498 | Target: Rs 585 | Upside 13 percent

The stock is in an uptrend forming higher tops and higher bottom on the daily as well as weekly charts. The stock has formed a major bottoming out formation on the weekly chart and tested its previous all-time high of Rs 509.

For the last week, it has been trading in a narrow range and formed a bullish pole and flag pattern on the daily chart.

The stock is showing signs of breakout on the upside with a bullish body candle closing at an all-time high. The Average Directional Index (ADX) line, an indicator of trend strength has moved above the equilibrium level of 20 with rising Plus Directional line on the weekly chart.

Thus, the stock can be bought at current levels and on dips towards Rs 513, with a stop loss below Rs 498, and a target of Rs 580 levels.

(The author is Head of Technical and Derivatives, Sanctum Wealth Management)

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 Nov 10, 2019 10:56 am
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