Kshitij Anand Moneycontrol News
D-Street witnessed a week of consolidation but bulls managed to get an upper hand. The S&P BSE Sensex rose 0.42 percent while the Nifty50 added 0.3 percent for the week ended November 9.
Sensex rallied only during the Muhurat Trading session while for the rest of the days it consolidated in a narrow range. One big positive takeaway from last week was that Sensex managed to hold on to 35,000 while Nifty50 stayed above 10,550 levels on closing basis, but analysts are not convinced.
“Generally, these tiny session trades with low volumes and hence we should not give much weightage to this price development. In fact, throughout the week, there was no major participation seen in the market. Therefore, this truncated week does not contribute anything to our analysis,” Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking told Moneycontrol.
“At this juncture, we still believe that the index is heading towards its cluster of resistance, which is in the zone of 10,750 - 10,800. As of now, one should trade with a positive bias but at the same, it’s better to start lightening up positions once index reaches this strong hurdle and then wait for further developments to happen on charts,” he said.
He further added that on the lower side, 10,540-10,500 are seen as immediate support for the index. “We advise traders to continue with a stock-centric approach by adopting a proper exit strategy,” added Chavan.
India VIX fell 2.58 percent at 17.76 levels in the last week and volatility has been falling for last three consecutive weeks which is supporting for buying interest on declines.
On the options front, maximum Put OI is placed at 10,000 followed by 10,200 strikes while maximum Call OI is seen at 11,000 followed by 10,800 strikes.
Fresh Call writing is seen at 10,800 followed by 10,700 strike which indicates limited upside while Put writing is seen at 10,500 strikes. Option band signifies an immediate trading range between 10,500 and 10,700 zones.
Here is a list of top 10 short-term trading ideas which could give 4-17% return in the next 1 month:
Analyst: Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking
DCM Shriram: Buy| LTP: Rs 422| Target: Rs 485| Stop Loss: Rs 386| Return 14%
In the last couple of weeks, we have clearly witnessed an outperformance from the midcap space. With Friday’s smart rally in the Mid-cap index, we expect a continuation of the ongoing momentum.
DCM Shriram has been consolidating for some time now and on Friday, the stock prices finally broke out from the congestion zone placed around 420 with sizable volumes.
This price action coincides with the breakout from the ‘Falling Trendline’ and hence, we expect this stock to do well in the near-term. We recommend buying for a positional target of Rs 485 in the coming weeks. The stop loss can be placed at Rs 386.
Maruti Suzuki India: Buy| LTP: Rs 7,276.45| Target: Rs 7,800| Stop Loss: Rs 7,040| Return 7%
After enjoying a good multi-year Bull Run, this stock underwent a massive price correction from its all-time highs. The falling momentum somehow got arrested around Rs 6,600 and the stock prices then consolidated around it for a while.
At this juncture, looking at the daily chart, the stock is clearly gearing up for a strong relief move. Technically speaking, we can witness a positive crossover in the daily ‘5&20 EMA’, which certainly bodes well for the stock.
Hence, we advise going long for a target of Rs 7,800 levels in the coming days. The stop loss can be placed at Rs 7040.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
SRF: Buy| LTP: Rs 2,084| Target: Rs 2,210| Stop Loss: Rs 1,987 | Return 6%
This counter appears to be on the verge of a breakout above its interim top formed at Rs 2084. Interestingly, volumes close to this resistance point are relatively higher with active price movement in the last session.
Hence, if the stock price sustains above Rs 2084, the momentum will take it higher towards Rs 2210 in the short term. Positional traders are advised to buy into this counter for a target of Rs 2210 and a stop loss of Rs 1987
Grasim Industries: Buy| LTP: Rs 865.85| Target: Rs 910| Stop Loss: Rs 837 | Return 5%
This counter appears to be slowly nudging higher after a brief pause for a couple of trading sessions. Hence, sustaining above Rs 840 levels, it can aim to test its recent peak formed at Rs 915.
Hence, positional traders are advised to go long or buy the stock at current levels with a stop loss below Rs 837 and a target of Rs 910
Asian Paints: Buy| LTP: Rs 1,298.20| Target: Rs 1,415| Stop Loss: Rs 1,250 | Return 9%
The counter appears to have registered a breakout above its 200-day moving average with a gap up on relatively stronger volumes. Hence, if the stock sustains above the said gap area of Rs 1256 – 1254, the counter could slowly head towards its logical target of Rs 1415.
Positional traders are advised to adopt a two pronged strategy of buying now and should prepare to add further around Rs 1266 levels for an initial target of Rs 1347 and thereafter a higher target of Rs 1415 can’t be ruled out. The stop-loss suggested for the trade is Rs 1,250.
Analyst: Abhishek Mondal of Guiness Securities
Ashok Leyland: Buy| Close: 118| Target: Rs 138 | Stop loss: Rs 112 | Return: 17%
The stock has given a breakout from the symmetrical triangle pattern around 117-118 last week on the daily scale with moderate volumes. The momentum indicator Relative Strength index (RSI) reading at 56.60 level, showing positive strength and MACD is trading around zero line with positive crossover whereas stochastic %K continuously trading above %D, which indicates limited downside for the stock.
Based on the above observations, traders can buy the stock around current levels and add on dips around Rs 116-117 with a stop loss below Rs 112 (closing) for a target of Rs 138.
NIIT Technologies: SELL FUT | Close: 1,177.25 | Target: Rs 1,100 | Stop loss: Rs 1,225 | Return: 6.54%
NIIT Tech is trading below its short and mid-term moving averages with moderate volumes on the daily scale, which indicates that the bias can remain bearish for the next few trading sessions.
The Daily Relative strength index (RSI) showing negative momentum and stochastic %K is continuously trading below %D, which indicates limited upside for the stock.
Based on the above observations, the stock is likely to move down in the near-term. Traders can sell the stock future after some technical bounce around Rs 1176-1180 with a stop loss above Rs 1225 (closing basis) and a target of Rs 1100
Bata India: Buy| Close: 1,027 | Target: Rs 1,115 & Rs 1,135 | Stop loss: Rs 960 | Return: 10%
Bata is consistently trading above its short and mid-term moving averages as well as above its 50 percent retracement levels of August 29 to October 23 2018 down move with moderate volumes in daily scale, which indicates that the bias can remain positive for the next few trading sessions.
The Daily Relative strength index (RSI) is showing positive momentum and MACD trading around zero line with positive crossover whereas (+)DI continuously trading above (-)DI.
Traders can buy the stock at current levels and add on dips with a stop loss below Rs 960 (closing) for the target of Rs 1115 and Rs 1135.
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
Glenmark Pharma: Buy| Target: Rs 705 | Stop-Loss: Rs 655 | Upside: 4%
Glenmark Pharma made a strong rebound in the last one month after remaining under selling regime where it consolidated from a higher price-band of Rs 712-705 levels towards a low of Rs 579-574 on its three-month price chart.
Taking a strong support at Rs 570 levels, the scrip managed to decisively breakout from its long-term moving average level placed at Rs 611-606 levels, and made a decent volume growth to vindicate the current trend.
The weekly RSI stood at a favorable level of 62 coupled with bullish crossover intact on MACD which is trading above its Signal-Line that happened previous week. We have a buy recommendation for Glenmark Pharma which is currently trading at Rs 676.15.
RBL Bank: Buy| Target: Rs 579 | Stop-Loss: Rs 521 | Upside: 5%
RBL Bank witnessed a steep correction from Rs 651 levels towards a low of Rs 483-438 levels in the last two months and continued to make durational consolidation despite its attempt to rebound.
However, taking a strong support at Rs 440 levels, the scrip made a substantial rebound with occasional dip for more than two weeks despite a weak market breadth.
This week the scrip managed to breach upward from its 200-days EMA levels placed at Rs 528 levels on closing basis, and similarly saw a volume growth to support the trend.
The momentum indicator outlined a positive trend at the current level with RSI at 58 levels, while MACD is likely to witnessed bullish crossover in the coming session to trade above its signal line. We have a buy recommendation for RBL Bank which is currently trading at Rs 551.65.
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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