Rupak De Bonanza Portfolio
The resistance faced by Nifty around 11,500 led to a quick correction towards 11,350. The index has been hovering within a narrow rising channel, and Nifty has found initial support at the lower band of this channel.
The momentum oscillator, daily RSI has been consolidating around the overbought zone; a negative divergence in the daily RSI may induce a bearish momentum over the near-term. In addition, daily MACD has just entered in a bearish crossover.
However, no major pattern breakdown is visible in the Nifty. On the higher end resistance is visible around 11,500; fresh longs may come in the market if Nifty sustains above 11,500.
A decisive trade above 11,500 may induce rally towards 11,600. Whereas, consecutive failure in moving above 11,500 may push the index lower towards 11,300.
Maximum open interest in 11,500 and 11600 Calls suggests the upper band of the trading range whereas highest open interest in 11,200 and 11,300 Puts indicate immediate support levels in the case of a market meltdown.
Here is a list of top 4 stocks which could give 7-11 percent return in the short term:
Arvind: Buy| CMP: Rs. 396.55| Target Rs 424| Stop Loss Rs.383| Return 7.00%
The stock has been consolidating after a sharp correction from 435. On the lower end, a trend line has been acting as a support to the stock’s closing price for the last few days.
The price has closed above the recent consolidation on the daily line chart. In addition, the price has also formed a bullish BAT Harmonic pattern on the daily chart. Traders can accumulate the stock in the range of 390-400 for the target of 424 with a stop loss below 383.
Coffee Day Enterprises: Buy| CMP: Rs. 247.40 | Target RS.272|Stop Loss Rs.237|Return 10%
The stock has so far corrected around 80 percent of the previous rally from 204 to 374. On the daily chart, the price has completed the formation of a bullish Nen Star Pattern, which suggests a price reversal around the corner.
A lower wick on the daily candle suggests that the stock has witnessed buying around the day’s low. A positive divergence is visible on the daily RSI (14) which suggests a positive momentum may be seen in the near term.
Traders can accumulate the stock in the range of 245-250 for the target of 272 and a stop loss below 237.
DHFL: BUY| CMP: Rs.658.20 | Target RS.730|Stop Loss Rs.628|Return 11%
The stock has given a clean breakout above the symmetric triangle on the daily chart which is expected to propel a rally in the stock. The breakout is backed by a spike in volume.
In addition, the price has moved above its 200 DEMA (double exponential moving average). Surpassing above previous swing high also suggests growing optimism in the stock.
Traders can accumulate the stock in the range of Rs 655-665 for the target of Rs 730 and a stop loss below Rs 628.
Aurobindo Pharma: BUY| CMP: Rs.631.35 | Target RS.700|Stop Loss Rs.598|Return 10%
The stock has given symmetric triangle breakout on the daily frame which is expected to propel a rally in the stock. The breakout is backed by higher than the previous day’s volume.
The recent movement has pushed the price above recent swing high. Strength Index RSI (14) is in a bullish crossover whereas MACD is in Buy Mode. Traders can accumulate the stock in the range of Rs 625-635 for the target of Rs 700 and a stop loss below Rs 598.
Disclaimer: The author is a Technical Research Analyst at Bonanza Portfolio. The views and investment tips expressed by investment expert on Moneycontrol are his own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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