Kshitij Anand Moneycontrol News
The Nifty 50 slipped 1.6 percent for the week ended October 19 and closed slightly above the 10,300 level. The last two sessions of the previous week broke the back of bulls as the index retest crucial support levels after hitting 10,700.
The first half of the week was largely on expected lines as the index made its way to touch 10,700 supported by a fall in crude oil prices and respite in domestic currency after recent relentless weakness.
The index resumed its downtrend, but the way it closed on Friday (Oct 19), somehow indicates a possible exhaustion in the selling momentum, suggest experts as there was no major follow-through selling seen in the index and to support it.
"We believe that the sellers are a bit exhausted and the recent support zone of 10,200 – 10,138 may well be defended for a while. Technically speaking, last week we had mentioned about the positive crossover in ‘RSI-Smoothened’ on the daily chart, which is still intact," Sameet Chavan, Chief Analyst - Technical and Derivative at Angel Broking told Moneycontrol.
"If we see index surpassing and staying beyond Friday’s high of 10,380, then our assumption would get confirmed and in this case, we may see index rebounding back to 10,550 – 10,700 levels," he added.
Going ahead, Chavan expects that the index has to undergo some time-correction for a while, but the range would be slightly wider. It's advisable to keep booking existing shorts and ideally adopt a stock-centric approach.
We have collated a list of top 10 money making ideas by different experts which could give 3-17 percent returns in the next one month:
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
ITC: Buy | Target: Rs 306 | Stop-loss: Rs 275 | Return: 6%
ITC witnessed a healthy correction of about 17 percent in the past two months from its 52-week high placed at Rs 322 towards a low of Rs 265 levels.
However, the scrip witnessed a strong upward reversal for an extended period despite a negative market breadth and witnessed a decisive breakout from its long-term 200-day Exponential Moving Average (EMA) level placed at the 283 level.
It was substantial volume growth in the last one week at the current level that translated to a current reversal in trend. The RSI level stood upward at 50, while MACD had no significant trend. We have a Buy recommendation for ITC, which is currently trading at Rs 289.45.
NIIT Technologies: Buy | Target: Rs 1,288 | Stop-loss: Rs 1,220 | Return: 4%
NIIT remained on an uptrend trajectory last week after trading on a rangebound level for over a month. It made a correction from price-band of Rs 1,272-1,193 levels towards a low of Rs 1,043, before initiating the current upward trend.
It managed to break out from its 100-day level placed at Rs 1,170 coupled with strong volume growth that indicates the buying sentiment is active at the current level.
The momentum indicator outlined a positive trend at current levels with weekly RSI at 55 level, and is gradually moving upward, while
MACD is likely to witnessed bullish crossover in the coming session to trade above its signal line. We have a buy recommendation for NIIT Technologies which is currently trading at Rs 1,238.25.
Avenue Supermart: Sell | Target: Rs 1,201 | Stop-loss: Rs 1,268 | Downside: 3%
Avenue Supermart continued to stiff selling pressure over the last one month and slipped below its long-term crucial levels of 200-day EMA placed at Rs 1,393 levels.
Despite its attempt to reverse the trend during a couple of sessions, it failed to sustain the rally to form long bearish candlestick pattern on the daily price chart.
The scrip currently holds strong support at Rs 1,175 levels and a breach below this will trigger another leg of the downward rally.
The RSI stood at 31 levels while MACD continued to trade below its signal-line, indicating a weak trend for the scrip. We have a sell recommendation for Avenue Supermart, which is currently trading at Rs 1,234.25
Analyst: Sameet Chavan, Chief Analyst - Technical and Derivative at Angel Broking
Raymond: Buy | LTP: Rs 640.15 | Target: Rs 750 | Stop-loss: Rs 612 | Return 17%
The recent correction in the midcap universe seem to have arrested for a time being and it appears as if it’s poised for further relief. ‘Raymond’ from this space is better placed and if we look at the higher degree charts, we can see a completion of 78.6% retracement of the previous up move, which coincides with the weekly ’89 SMA’.
In addition, due to last week’s price action, the weekly chart depicts a ‘bullish Hammer’ around this key support zone. Hence, we recommend buying for a positional target of Rs.750 in coming weeks. The stop loss can be placed at Rs 612.
Bank of Baroda: Buy | LTP: Rs 102.40 | Target: Rs 116 | Stop-loss: Rs 95 | Return 13%
The broader market corrected in last two trading sessions, but this ‘PSU’ banking name has not been correcting; in fact, it has managed to buck the trend convincingly. If we look at the daily chart, the stock prices have been trading above the 5-day EMA for the first time in the last four weeks.
The ‘RSI-Smoothened’ oscillator has completed the positive crossover well inside the positive territory. All these evidence indicate the outperformance to continue and hence, we advise going long for a target of Rs.116 in coming days. The stop loss can be placed at Rs.95.
Brokerage Firm: SMC Global Securities Ltd
Tata Chemicals: Buy| LTP: 671.90 | Target: Rs 720 | Stop-loss: Rs 630 | Return 7%
The stock made a 52-week low at Rs 622 on October 9, 2018 and a 52-week high of Rs 787.50 on May 4, 2018. The 200-day EMA of the stock on the daily chart is currently placed at Rs 700.53.
The stock gave a sharp correction from its all-time high of Rs 787 levels to Rs 620 in a short span of time and formed a reversal candle on the weekly charts.
Thereafter, a follow-up buying was also witnessed as the stock ended with gains of over 2 percent last week and has managed to close above 100-WEMA, which also gave a positive outlook for the stock.
Therefore, investors can buy in the range of Rs 660-665 levels for the upside target of Rs 710-720 levels and a stop loss below Rs 630.
Wipro: Buy | LTP: Rs 323.05 | Target: Rs 350 | Stop-loss: Rs 300 | Return 8%
The stock made a 52-week low at Rs 253.50 on 6th June 2018 and a 52-week high of Rs 338 on 24th September 2018. The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently placed at Rs 291.30.
The short, medium and long-term bias are looking positive for the stock as it is continuously trading in higher highs and higher lows on the weekly chart, which is bullish in nature.
It formed a "Bull Flag" pattern and has given a breakout from the pattern by closing with gains of over 2 percent in the previous week.
Technical indicators such as RSI and MACD are looking positive for the stock. One can initiate long positions in the range of Rs 318-321 levels for the upside target of Rs 345-350 levels and a stop loss below Rs 300.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Cummins India: Buy | LTP: Rs 699.20 | Target: Rs 747 | Stop-loss: Rs 670| Return 6.8%
After prolonged downtrend from the highs of Rs 1,247 registered in 2015, this counter appears to have taken support around the demand line of the three-year-old descending channel.
Moreover, after retracing 50 percent of its last leg of the rally from the lows of Rs 642-717 this counter registered a piercing formation in the last session which is a reversal sign suggesting the end of correction.
Hence, sustaining above Rs 674 levels, this counter can initially test its 200-day moving average. Positional traders are advised to buy into this counter for a target of Rs 747 with a stop loss below Rs 670 on a closing basis.
Vedanta: Buy | LTP: Rs 211.15 | Target: Rs 227 | Stop Loss: Rs 195 | Return 7.5%
This counter appears to have good support in the zone of Rs 200-198 levels as it has bounced back from the said levels on multiple occasions in the past as pointed out by long lower shadows on the daily chart.
Hence, traders are advised to adopt a two-pronged strategy of buying at current prices and adding further on corrections. Investors can buy the stock around Rs 200 for an initial target of 227. A stop-loss suggested for this trade is placed below Rs 195.
Sun Pharma: Buy | LTP: Rs 608.40 | Target: Rs 647 | Stop-loss: Rs 589 | Return 6.4%
This counter appears to have bottomed out around Rs 582 levels after the recent correction from the highs of Rs 679 and looks to ripe for a breakout above its 27-day old descending channel.
It registered a bullish engulfing formation on relatively higher volumes in the last session which is a positive sign.
Hence, traders are advised to buy into this counter for a target of Rs 647 and a stop below Rs 589 on a closing basis.
Disclaimer: The views and investment tips expressed by 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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