Kshitij Anand Moneycontrol News
The Indian market continued its downtrend for the third consecutive week weighed down by both global as well as local cues. The Nifty just managed to hold onto its crucial support placed at 10,000 and closed 2.65 percent lower for the week ended October 26.
Both Sensex and Nifty have declined by about 14 percent from their earlier peaks on account of this current global sell-off and partly driven by looming concerns in the NBFC sector. The trend still remains to be on the downside and the next crucial support for the index is placed at 9950-9800 levels, suggest experts.
“The probable target of said pattern comes near 9800 which is below the crucial support of 9950. On the weekly chart, Nifty broke the rising trend line support drawn by joining the previous two swing lows of 6825.80 (Candle low of March 04, 2016) & 7893.80 (candle low of December 30, 2016) respectively,” Aditya Agarwal, Head – Technical Research, Way2Wealth Brokers told Moneycontrol.
“As far as the levels are a concern, the weekly swing low of 9951.90 may act as a near-term support and any decisive move below 9950 will put further pressure on nifty and we may see a slide towards the 9800,” he added. On the upside, 10290 will act as a strong resistance above which the next resistance comes near 10450.
Here is a list of top 10 moneymaking ideas by different technical experts which could give 5-10% return in 1 month:
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
Sterlite Technologies: Buy | Target: Rs 363 | Stop-Loss: Rs. 330 | Return: 5%
Sterlite Technologies Ltd remained in an uptrend trajectory during the last week after trading on a rangebound level for over six months. It made a correction from the price-band of Rs 365 levels towards a low of Rs 281, down by about 23 percent before initiating the current upward trend.
It has also managed to break out from its 200-days level placed at Rs 310 levels coupled with strong volume growth during the past sessions indicating a buying sentiment at the current level.
The momentum indicator outlined a positive trend at the current level with RSI at 60 levels which are gradually moving upward, while the MACD made a bullish crossover recently to trade above its signal-line. We have a buy recommendation for Sterlite Technologies which is currently trading at Rs. 345.95
Jubilant Foodworks: Sell | Target: Rs 1,013 | Stop loss: Rs 1,191| Return: 4%
Despite its pullback from a low of Rs 1,125 towards 1268 levels, Jubilant failed to sustain the rally and witnessed another leg of a selloff on its weekly price chart. The scrip initially corrected from 1,564 levels to breach below all the moving average level.
It recently slipped from its 200-days EMA levels placed at 1210 levels and formed a long bearish candlestick pattern on its weekly chart.
It currently holds a strong support at 1091 levels and a breach below this level will trigger another leg of the downward rally.
The RSI stood at 31 levels while MACD continued to trades below its Signal-Line. We have a sell recommendation for Jubilant Foodworks which is currently trading at Rs 1,055.55
Asian Paints: Sell | Target: Rs 1,154 | Stop-Loss: Rs 1,214 | Return: 3%
Asian Paints continued to remain under selling regime after recording a peak of 1467 level which was formed six months ago. It decisively breached below its long-term crucial levels of 200-days EMA placed at 1261 levels recently.
Despite its attempt to reverse the trend last week, it failed to sustain the momentum to form a bearish candlestick pattern on its weekly price chart.
The formation also induces a rejection of price at the current level which is expected to further put scrip under pressure on a short-term basis. It currently holds a strong support at 1091 levels and breaches below this level will trigger another leg of the downward rally.
The RSI stood at 38 levels while MACD trades below its Signal-Line, indicating current weakness in scrip. We have a sell recommendation for Asian Paints which is currently trading at Rs. 1190.30
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Reliance Industries: Buy| LTP: Rs 1,044.70| Target: Rs 1,114| Stop Loss: Rs 1,010| Return 6%
As this counter tested and bounced back from its 200-day moving average with a positive close in the last session there can be a trading opportunity on the long side as long as it sustains above 1016 levels.
Hence, on a bounce from the current levels, it can test its bearish gap area present in the zone of 1114 – 1140 levels. Traders are advised to buy into this counter with a stop below 1010 on a closing basis and look for the target of 1114.
Disclaimer: Reliance Industries Ltd., which owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
Tata Steel: Buy| LTP: Rs 551| Target: Rs 579| Stop Loss: Rs 530| Return 5%
After retracing around 62 percent of its last leg of the rally from the lows of 493 – 647, this counter appears to have posted a short-term bottom at the recent low of Rs 535 levels.
It is moving in a horizontal fashion. If the stock sustains above Rs 535, it can initially target Rs 579 levels. A stop-loss suggested for the trade is Rs 530.
Tata Elxsi: Buy| LTP: Rs 965.10| Target: Rs 1050| Stop Loss: Rs 917| Return 8%
This counter registered a Hammer formation in the last trading session with a possible double bottom around Rs 922 levels. Hence, sustaining above this low, traders can initiate fresh longs with a stop of Rs 917 and look for a target of Rs 1050 levels.
Analyst: Aditya Agarwal, Head – Technical Research, Way2Wealth Brokers
Maruti Suzuki: Sell around 6,720-6,750| LTP: Rs 6,705| Target: Rs 6,000| Stop Loss: Rs 7,000| Time frame 15 to 21 trading sessions| Return 10.5%
Looking at the daily chart, the stock has been in a clear downtrend since the last two months and hit a low of Rs 6,660. Subsequently, we saw a sideways momentum which resulted into a formation of Descending Triangle pattern.
The said pattern is a continuation pattern and requires confirmation in terms of breaching the lower band of the trend line.
During the day, the stock convincingly broke the lower band of trend line which eventually confirmed the triangle pattern. The target of said pattern comes near Rs 6,000.
The daily RSI (14) formed a negative reversal pattern which supports our hypothesis. Hence, we advocate traders to short this counter around Rs 6700 with a price target of Rs 6000. A stop loss should be placed above Rs 7,000.
HCL Technologies: Sell around 975 – 985| LTP: Rs 964| Target: Rs 925| Stop loss 1,013| Time frame 15 to 21 trading sessions| Return 4%
Looking at the daily chart, we saw a decent profit booking across the IT space and HCL Tech too corrected in line with the other peer. On the daily chart, the stock formed a bullish divergence which was followed by a negative reversal pattern.
The daily 9-45 EMA on price is negative indicates that the current trend is still down. Hence, we recommend traders to short this counter in the range of Rs 995 to 1005 with a price target of 925. A stop loss should be placed above Rs 1040.
HUL: Sell around Rs 1,570 – 1,580| LTP: Rs 1,560| Target: Rs 1,435| Stop Loss: Rs 1,655| Time frame 15 to 21 trading sessions| Return 8%
Looking at the daily chart, the stock has been in a strong uptrend during the first half of the calendar year 2018 and in that optimism, it hit a fresh 52-week high of around 1800.
Subsequently, we saw a vertical slide and the stock nosedived towards 1468. Recently, we saw a decent pullback in stock; however, some bit of resistance was found near 1570 – 1580 zone as this coincided with its previous support zone which had reversed its role post-breakdown.
The daily RSI (14) indicates overbought condition at this juncture. Hence, we advise traders to build a short position in the range of 1570 to 1580 with a price target of 1435. A stop loss should be placed above Rs 1655 levels.
Brokerage Firm: SMC Global Securities
Havells India: Buy| LTP: Rs 602| Target: Rs 660| Stop Loss: Rs 565| Return 9.6%
The stock closed at Rs 602.85 on 26th October 2018. It made a 52-week low at Rs 450 on 6th February 2018 and a 52-week high of Rs. 728.75 on 3rd September 2018.
The 200-days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 578.74. Due to correction in the broader indices, the stock has given a profit booking from the highs but manages to trade above 200-DEMA, which gives a positive outlook for the near-term.
Apart from this, it was consolidating in the range of 560 to 600 levels for three weeks, formed a “Triangle” on daily charts and managed to close on verge of a breakout so buying momentum can continue for coming days.
Therefore, one can buy in the range of Rs 590-595 levels for the upside target of Rs 650-660 levels with a stop loss below Rs 565
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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