Mazhar Mohammad Chartviewindia.in
Things are looking positive for the next week and we should not ignore the fact that this entire upswing from the lows of 11,250 is driven by some positive expectations from this sudden decision of ‘weekend meeting on the economy’.
Hence, this entire rally can just be on the back of a massive short covering. The strength in this leg of upswing will be known only post Monday’s price action.
In case the outcome of the meeting doesn’t match the expectations of market participants then resumption of downswing can’t be ruled out. Technically speaking, if market sustains above Friday’s gap zone of 11,430 – 11,380 levels then it should remain positive with an initial target of 11,650.
As the long-term trends are bullish, this correction has to end at some point in time. It may end on Monday or after a couple of weeks, but eventually, a fresh breakout beyond 11,760 shall open-up targets placed around 12,500 kinds of levels.
As of now, further downsides, if any, below 11,250, shall get curtailed in the zone of 11,100–11,050 levels.
Here is a list of top three stocks which could give 4-10% return in the next 1 month:
Asian Paints: Buy| LTP: Rs 1331| Target: Rs 1390| Stop Loss: Rs 1295| Return: 4%
This counter registered a Hammer formation on the weekly charts after retracing 50 percent of its last leg of the rally from the lows of Rs 1,092 registered in March 2018 to Rs 1490 levels.
Hence, this decent correction of its larger upswing appears to be providing a decent entry point once again. Hence, positional traders should buy into this counter for a target of Rs 1390 with a stop below Rs 1295 on a closing basis.
JSW Steel: Buy| LTP: Rs 407| Target: Rs 447| Stop Loss: Rs 387| Return 10%
This counter appears to be in a steady uptrend as it is consistently hitting new lifetime highs week after week.
As this counter appears to be consolidating for the last couple of days in a range of Rs 388 – 414 positional traders should make use of this pause or minor corrective phase to go long in anticipation of this range breakout with a stop below Rs 387 on a closing basis.
An initial target can be kept at Rs 447 whereas based on long-term trend studies a bigger target of Rs 470 can’t be ruled out in near future.
United Spirits: Buy| LTP: Rs 581| Target: Rs 641| Stop Loss: Rs 560| Return: 10%
After retracing 80 percent of its last of the rally from the lows of Rs 548 – 661 this counter registered a Bullish Engulfing formation strengthening the case for either the end of correction at the recent low of 565 or a pullback move.
In case of pullback rally materialises then the initial target is placed around Rs 641 levels. Hence, positional traders are advised to buy into this counter with a stop of Rs 560.
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