Top 10 short-term buy & sell ideas for September series that could give 4-16% return

Experts advise investors to book profits if they are already holding long positions

August 31, 2020 / 11:53 AM IST
 
 
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Strong global cues and consistent buying by foreign institutional investors (FIIs) helped Nifty50 climb crucial resistance levels in the week gone by, and experts feel that the momentum is likely to continue in the September series as well.

The ongoing rally across the globe is helping bulls to climb all wall of worries. Strong rollover for the September series also suggests that long positions got rolled over.

Experts advise investors to book profits if they are already holding long positions. If someone wants to enter now then wait for a dip because there could be some resistance around 11,700 levels.

“We are advocating booking timely profits on trades as well and we would continue to do so. After a certain time, it is always better to let go of some move and focus on money management. As far as levels are concerned, 11700-11750 remains to be an immediate hurdle (coincides with multi-month upward sloping trend line),” Sameet Chavan. Chief Analyst -Technical and Derivatives, Angel Broking told Moneycontrol.

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“On the flip side, 11600 followed by 11540 would be seen as key support levels. It may It is also important to take note that the short-term pause would be seen below 11540-11500,” he said.

Chavan further added that one needs to be selective when it comes to stock picking going forward. Since the last few days, the banking space started to outperform and during the week there was a gradual move seen in Nifty.

Here is a list of top 10 buy or sell ideas for the September series with a minimum time horizon of 3-4 weeks:

Expert: Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking

Canara Bank | Buy | LTP: Rs 114.75 | Target price: Rs 122 | Stop loss: Rs 107.80 | Upside: 6%

Till last week, the banking index was underperforming significantly. In the index, public sector banks (PSBs) have been laggards for the past few years.

However, the entire banking space seems to have revived, witnessing a catch-up move to the broader market.

With Bank Nifty surging 10 percent last week, PSBs managed to finally contribute to the rally on Friday.

Canara Bank is considered to be the favourite of traders. It has confirmed a good price-volume breakout on the daily chart.

Hence, we recommend going long on a decline towards Rs 112-110 for a target of Rs 122 over the next few days.

Info Edge India | Buy | LTP: Rs 3,389 | Target price: Rs 3,590 | Stop loss: Rs 3,280 | Upside: 6%

During the last five months, a lot of different themes played out well and in this course of action, many stocks have given multifold returns.

This stock belongs to that camp as it steadily kept moving higher since March lows and has already doubled since then.

Recently, we witnessed some consolidation in this counter, which can be construed as a time-wise correction.

Last Friday, the stock managed to breakout from recent congestion along with decent volumes. Hence, we expect the stock to resume its uptrend now.

JSW Steel | Sell | LTP: Rs 281 | Target price: Rs 270 | Stop loss: Rs 291 | Downside: 4%

After a long period of underperformance, the metal space took a U-turn and has managed to give a stupendous move in the last three months.

Some of the steel counters just rallied as if there is no tomorrow, without giving even a small decline.

This is the nature of metal counters and historically it is proven when they rally, they just keep giving gravity-defying moves and vice versa.

Although it’s difficult to expect weakness in such high beta counters when they are in a strong uptrend, we sense some profit-booking taking place in the coming week.

JSW Steel showed early signs of profit-taking last Friday after witnessing some selling to close around day’s low.

We recommend going short around Rs 283-285 for a downside target of Rs 270.

Expert: Sacchitanand Uttekar – DVP – Technical (Equity), Tradebulls Securities

Sun Pharma: Buy| LTP: Rs 555| Target: Rs 610| Stop Loss: Rs 520| Upside 10%

The Pharma sector witnessed strong rollovers including Sun Pharma. Strong sectoral strength along with fresh breakout from a ‘Flag formation’ indicates the continuation of its existing up move.

The pattern target rests around 610 zone. Hence, fresh longs could still be added even on declines up to Rs 545 with a stop below Rs 520.

BlueDart Express: Buy| LTP: Rs 2250| Target: Rs 2630| Stop Loss: Rs 2040| Upside 16%

BlueDart Express has been trending lower after forming a high around 2015. In the last few months, the declining trend has been decelerating as its monthly RSI is also confirming a positive divergence.

The price structure looks like a ‘Falling Wedge’ which is about to witness a breakout. Usually falling wedge pattern occurrence in a declining trend is leading evidence of a bottoming trend.

Traders as well as investors should take advantage of a good risk-to-reward opportunity which is been presented by the pattern now.

In the long run, we expect Bluedart to witness an amplified up move towards Rs. 4180 once it closes above Rs. 2630.

Hence, long positions should be considered with a stop below Rs. 2040 even for positional longs for 3-4 weeks for an initial target up to Rs.2630 /Rs 2830.

Relaxo Footwear: Buy| LTP: Rs 660| Target: Rs 705| Stop Loss: Rs 620| Upside 7%

Relaxo witnessed a firm volume and price breakout on the final day of the week. The convergence of its 5 & 20-Weeks EMAs indicates that the momentum is likely to continue forward as its weekly RSI has jumped at 54 & closed above the crucial mark of 50 with a good margin.

Trading longs to be maintained with a stop below Rs.620 for an initial target up to Rs.705 followed by Rs.740.

Amara Raja Batteries: Sell| LTP: Rs 735| Target: Rs 670| Stop Loss: Rs 774| Downside 9%

The occurrence of Tweezer Top formation is a sign of exhaustion & likely reversals. Amara Raja Batteries has been gradually progressing upwards within a small ranged channel since 03 June 2020 when it registered the highest RSI reading above 70 when the stock registered a high around Rs.680 zone.

A breakdown from this narrow ranged channel could deform the structure & push the stock towards its 200 Days EMA placed around Rs.670 zone.

Hence, the up move should be utilised for fresh shorts with an anticipation of a break down rally towards 670 with a stop above Rs.774 (WCLBS)

Jindal Steel: Sell| LTP: Rs 216| Target: Rs 190| Stop Loss: Rs 232| Downside 12%

Jindal Steel now looks overbought & ready for a meaningful corrective action within its ongoing uptrend.

The occurrence of ‘Engulfing Bearish’ formation on its Daily & Weekly time frames is a sign of concern & could lead to a healthy corrective wave towards Rs.190.

A pullback towards Rs. 220 zone would make the setup more productive with its stop been placed around Rs.232.

Expert: Gaurav Garg, Head of Research of CapitalVia Global Research Limited

Kotak Mahindra Bank Ltd: Buy| LTP: Rs 1469| Target: Rs 1565| Stop Loss: Rs 1419| Upside: 6%

The stock has witnessed reversal from its support level placed in the zone of 1400 further strength might be gained if it sustains above 1469.

The crossover of its short and medium-term averages on daily charts with strong volumes showing signs of further upside. RSI has also turned positive on weekly charts, indicating limited weakness in the stock.

SBI Card: Buy: LTP: Rs 838.90| Target price: Rs 875| Stop loss: Rs 810| Upside: 4%

The stock is witnessing MACD cross-over in daily charts, also stock is forming a bullish flag pattern, if stock somehow sustains above 840 might lead to positive momentum.

The stock has seen a significant addition of volumes in recent days. Risk and reward are favorable at this juncture of time.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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