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The Nifty closed last week with a positive bias, but below its crucial level of 10,700, which suggest that bears are not ready to give up yet. The index is likely to consolidate in a range in June series as we head towards two crucial events: Monetary Policy Committee and US Federal Reserve policy meetings.
Investors are advised to remain cautious and watch out for two levels: 10,770 on the upside and 10,550 on the down. A breach of either could lead to a breakout or a breakdown. Until then, it is best if investors can remain stock-specific.
The index has made an indecisive pattern - Spinning Top - on the weekly chart and registered a Doji kind of formation on the monthly chart.
Since the past seven weeks, the Nifty has been consolidating between 10,820 and 10,500 levels, representing a short to medium term sideways trend.
“Any decisive break on either side will provide direction to the market. The chart pattern suggests that if the Nifty crosses and sustains above 10,770 levels, then it would witness buying interest which would lead the index towards 10,820-10,900 levels,” Rajesh Palviya, Head-Technical & Derivative Research, Axis Securities, said.
If it breaks below 10,640 levels, he sees the index heading towards 10,550-10,500 levels. “For the week, we expect the Nifty to trade in the range of 10,820-10,550 with a mixed bias.”
Here is list of top 10 expert stocks ideas that could return 3-14 percent in the next 1-2 months:
Brokerage: SMC Global
Ujjivan Financial Services Limited: Buy| Target: Rs 450| Stop loss: Rs 365| Return 14%
The stock closed at Rs 393.80 on 1st June, 2018. It made a 52-week low at Rs 285 on 4th August 2017 and a 52-week high of Rs 434.75 on 11th May 2018. The 200-days exponential moving average (EMA) of the stock on the daily chart is currently placed at Rs 373.66.
Short term, medium term and long term bias is looking positive for the stock as it is comfortably trading above 200DEMA. Moreover, it is likely to form an “Inverted Head and Shoulder” pattern on weekly charts which is bullish in nature.
Apart from this, the technical indicators such as RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of Rs 385-389 levels for the upside target of Rs 440-450 levels with a stop loss below Rs 365.
Brokerage: Angel Broking
Pfizer: Buy| LTP: Rs 2,565| Target: Rs 2,855| Stop loss: Rs 2,405| Return 11%
Among all the pharma stocks, this stock has performed very well during the last few sessions. On the daily chart, the prices are above the 20-DEMA indicating a strong trend in the coming sessions.
Further, the 'RSI' on the daily chart is in an upward direction which indicates a positive bias. Also, on the weekly chart, prices have taken a strong support at 10-DEMA which indicates an uptrend.
In addition, if we try to analyze ‘Bollinger Bands’ it clearly reflects bullish stance on the counter. Considering all the above scenarios, we recommend buying this stock at current levels for a target of Rs 2,855 over the next one month, and a stop loss should be fixed at Rs 2,405.
KPIT Technologies Ltd: Buy| LTP: Rs 285.75| Target: Rs 319| Stop loss: Rs 266| Return 11.6%
On the weekly chart, the stock price is trading well above the 10-DEMA & 50-DEMA which reflects a positive bias. The stock is trading near its all-time high which shows its outperformance in the recent market turbulence.
Prices have resumed its uptrend after sideways consolidation which signals upside movement. Also, among the oscillators, stochastic is in rising direction and in the overbought zone with a reading of around 94.
Thus, we recommend buying this stock at current levels for a target of Rs 319 over the next one month. The stop loss should be fixed at Rs 266.
Dabur Ltd: Buy| LTP: Rs 386.75| Target: Rs 427| Stop loss: Rs 364| Return 10.4%
The stock seems to be enjoying its multi-year bull run and price-wise, the stock price is trading well above 10-DEMA indicating bullishness in the counter. The stock is trading near all-time high which shows its outperformance in the recent market turbulence.
Further, if we try to analyze 'Bollinger Bands', it clearly goes with our bullish stance on the counter. Considering all above scenarios, a strong upside from current levels cannot be ruled out.
Thus, we recommend buying this stock at current levels for a target of Rs 427 over the next one month, and the stop loss should be fixed below Rs 364.
Analyst: Rajesh Palviya, Head-Technical & Derivative Research, Axis Securities
Torrent Pharma Ltd: CMP: Rs 1,438| Buying Range: Rs 1,430-1,400| Target: Rs 1540| Stop loss Rs 1375| Return 7%
On the weekly chart, the stock has observed a ‘Down Sloping Trendline’ breakout at Rs 1,420 on closing basis which signals a change of trend towards the upside.
This breakout is accompanied with high volumes indicating increased participation. The stock is currently trading above all its crucial SMA i.e. 20, 50, 100. The RSI and Stochastic are also in the positive terrain.
BPCL: CMP: Rs 408.55| Buying Range: Rs 408-400| Target: Rs 430-437| Stop loss: Rs 391| Return 7%
BPCL has given a downward sloping trendline breakout at Rs 400 which was also the immediate acting resistance in the stock and went on to make a high of Rs 411.50 on a closing basis.
The stock is witnessing high volume along with the support placed at 20 and 50-days SMA. The momentum indicators are also signaling a positive probability towards the bullish momentum in the stock.
Godrej Consumer Products: CMP: Rs 1,163.90| Buying Range: Rs 1,163-1,145| Target: Rs 1,230| Stop loss: Rs 1,115| Return 5.6%
Godrej CP has given the breakout from its last five weeks consolidation range of Rs 1,150-1,070 on the weekly closing basis. This breakout is accompanied with high volumes indicating increased participation.
The stock is forming higher top higher bottom formation on daily/weekly charts indicates sustained uptrend. The strength indicators are in positive territory which indicates positive momentum to continue further.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Hero MotoCorp: Buy| Target: Rs 3,749| Stop loss: Rs 3,500| LTP: Rs 3,623.75| Return 3%
After retracing 50 percent of its rally from the recent lows of Rs 3,445 this counter appears to have resumed its up move after hitting a low of Rs 3,528.
The momentum in this counter shall pick up once it manages a close above Rs 3,624 paving way for a swift up move towards Rs 3,700 levels.
Hence, positional traders are advised to buy into this counter for a target of Rs 3,749. A stop-loss suggested for the trade is below Rs 3,500.
Reliance Industries: Buy| Target: Rs 970| Stop loss: Rs 900| LTP: Rs 929.20| Return 5%
Albeit this counter has underperformed in the recent past, it appears to have formed a decent base around Rs 900 levels from the cushion of which it is bounced back.
On resumption of the up move, it can make an attempt to test the gap down area of Rs 974 – 976 registered on 16th of May. Hence, positional traders are advised to buy into this counter for a target of Rs 970 and a stop loss below Rs 900.
(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)
HCL Technologies: Buy| Target: Rs 997| Stop loss: Rs 885| LTP: 906.40| Return 10%
This counter appears to be in a consolidation mode, around Rs 900 levels after the recent correction from the highs of Rs 1,108 registered in April.
As bottom appears to be in place around Rs 887 sooner than later it should resume its up move as the entire sector is looking positive. A minimum target of Rs 997 is possible because it is 50 percent retracement of the entire fall from the top of Rs 1,108 to Rs 887.
As risk-reward ratios are favourable, positional traders should make use of this opportunity to go long on the stock with a stop below Rs 885 for an initial target of Rs 997.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their 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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