These 3 stocks can return 9-23% in the short term

The board of HCL Technologies approved a share buyback of 2.61 percent of the paid-up equity (around 3.6 crore shares) at Rs 1,100 per share, implying a total return of Rs 4,000 crore.

India's headline consumer inflation increased marginally to a five-month high of 5 percent in June from 4.9 percent in the previous month. Industrial productivity rose just 3.2 percent year-on-year in June, primarily because of a slowdown in the manufacturing sector and contraction in the consumer non-durable output.

Performance of sectors was mixed with energy and IT up 7.6 percent and 3.7 percent, respectively. Metals were down 1.1 percent and state-run banks, pharma, and realty declined 0.2 percent each respectively for the week.

India VIX declined 1.1 percent for the week.

Nifty has consistently moved up, crossing multiple resistance levels (around 10,800-10,850 levels) to close above 11,000 levels. On the lower side, it will find support at its 20-day moving average (placed at 10,800 level).

However, its 76.4 percent and 100 percent Fibonacci extension levels of prior upmove (9,952-10,929) will work as a major hurdle for the index, which are placed at 11,150 and 11,400 levels, respectively.

One can expect individual stocks to reacting to their quarterly performance.

Here is a list of 3 stocks that can return 9-23 percent in the short term:

Arvind: Buy | CMP: 411 | Target: Rs 475-505 | Stop loss: Rs 385 | Return: 15-23%

The stock reversed after taking support of its 100-week moving average and breached prior weekly falling trend with the rise of around 4 percent.

In the past, identical reversal from its 100-week moving averages supported 25-40 percent bounce back in the stock from that reversal point.

Major technical indicators are in the bullish mode, signaling strength in the stock.

We believe history will soon repeat and the stock will initially visit its life-time-high and then explores the uncharted territory.

Thus long position can be initiated here for the target of Rs 475-505 with a stop loss of Rs 385.

BPCL: Buy | CMP: Rs 387| Target: Rs 430-450 | Stop loss: Rs 358 | Return: 11-16%

The stock has formed Double Bottom Pattern around its 50 percent Fibonacci Retracement level of prior upmove (Rs 221-535).

We have observed bullish divergence in RSI and MACD w.r.t. prior formation.

As per the current weekly set-up, we believe the stock is on a verge of turnaround.

On the higher side, its prior swing high and its 23.6 percent Fibonacci Retracement level will cap the upmove.

Thus long position can be initiated here for the target of Rs 430-450 with a stop loss of Rs 358.

Hero MotoCorp: Buy | CMP: Rs 3,456 | Target: Rs 3,750 | Stop loss: Rs 3,320 | Return: 9%

The stock is consolidating in wide range (Rs 3,350-3,750) from last couple of months, where its key Fibonacci Retracement levels worked as turnaround points.

Major technical indicators on the weekly scale are trading below their averages, signaling near-term decline.

We believe such decline will be good entry point for the stock provided it stays firm above Rs 3,300 (prior swing lows).

Thus long position can be initiated here for the target of Rs 3,750 with a stoploss of Rs 3,300.

Disclaimer: The author is Senior Research Analyst at Reliance Securities. 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.