Moneycontrol
Get App
Last Updated : Feb 12, 2019 08:24 AM IST | Source: Moneycontrol.com

Stock picks of the day: Break below 10,800 on Nifty could trigger further fall to 10,650

We maintain our stance that convergence between the broader market and the benchmark index is essential for any sustainable move.

Moneycontrol News @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Jayant Manglik

The market ended marginally higher amid volatility for the week ended February 8 extending its prevailing consolidation phase. The sentiment was upbeat in the first three sessions taking cues from recently announced Interim Budget and optimism ahead of the monetary policy review meeting.

However, participation was limited largely to the index majors while decline continued on the broader front. Profit taking in final sessions trimmed gains of the benchmark index, too, and Nifty finally closed at 10,943.60.

The Nifty couldn’t sustain above 10,950 last week despite a good start. The momentum was weighed down by continuous fall on the broader front which kept the uneasiness intact.

We maintain our stance that convergence between the broader market and the benchmark index is essential for any sustainable move.

Nifty has crucial support at 10,800 and its breakdown could trigger further fall to 10,650. In case of any up move, 11,100 will act as a hurdle. Considering the present scenario, we advise keeping limited exposure and preferring hedged trades.

Here is a list of top three stocks which could give 4-6% return in the next 1 month:

HDFC Bank: Buy| Target: Rs 2,230| Stop-Loss: Rs 2,080| Upside 4.4%

Among the private banking space, HDFC Bank holds prominence due to its consistent performance. It is currently trading strongly above the support zone of major moving averages on multiple time frames, clearly indicating its strength.

Also, the stock is now on the verge of a fresh breakout from its two-month-long consolidation phase and is likely to make a new record high soon. We advise traders not to miss this chance and initiate fresh long positions in the mentioned zone of Rs 2125-2135.

UPL: Buy| Target: Rs 850| Stop Loss: Rs 775| Return 6.2%

UPL after consolidating in a narrow range recorded a breakout recently and is now gradually inching higher towards its record high. Though it looks firm, we may see a marginal dip before the further up move.

We advise participants to utilize that phase to create a fresh longs position in the given range Rs 790-800. It closed at Rs 805.85 on February 11, 2019.

ICICI Bank: Sell Feb Futures| Target: Rs 334| Stop Loss: Rs 364 | Downside 5.4%

After making a record high at Rs 383.55 last month, ICICI Bank is currently witnessing profit booking and likely to see fresh fall below Rs 348 levels. The resistance of long term trend line combined with the positioning of oscillators is adding to the negativity. We advise creating fresh shorts within Rs 353-356. It closed at Rs 352 on February 11, 2019.

(The author is President - Retail Distribution, Religare Broking)

Disclaimer: 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 Feb 12, 2019 08:24 am
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant