Indian market closed mixed for the week ended September 18, thanks to mixed global cues, rising cases of COVID-19 across the world, and geopolitical tensions between India and China.
Although a lot of action was seen in the small & midcap space, which according to experts, will continue in the coming week as well.
Nifty consolidated in a narrow range last week. 11,300-11,450 will act as crucial support for the index in the September F&O expiry week.
Sensex closed flat while Nifty50 was up 0.35 percent. BSE Small-cap index surged more than 5 percent and the S&P BSE Midcap index closed with gains of 2.6 percent for the week ended September 18.
Nifty is consistently facing selling pressure above 11,600 levels. Hence, that would be an important hurdle to cross for the index, suggest experts.
“We participated in an upward move but towards the fag end, we once again turned a bit cautious as we still believe that Nifty doesn’t have enough strength to go pass the sturdy wall of 11,650-11,700 soon. We must either go through some time-wise or price-wise correction before heading towards the 12,000-mark,” Sameet Chavan, Chief Technical & Derivatives Analyst at Angel Broking told Moneycontrol.
“For the coming week, 11600-11650-11700 remains to be a cluster of resistance; whereas on the lower side, 11450-11380 are to be seen as crucial supports. Any aggravation below these points would result in an extended correction in our market,” he said.
Here is a list of top 10 short-term trading ideas by experts that could give 7-15% return in the next 3-4 weeks:
Expert: Manish Srivastava, Senior Technical Analyst (Equity & Currency) at Rudra Shares & Stock Brokers Ltd.
Sun TV Network: Buy | LTP: Rs 484| Target: Rs 532 | Stop Loss: Rs 462 | Upside 10 percent
The initial signal of trend reversal buying can be seen in the weekly chart. The momentum indicators have started trading in a bullish zone.
On the daily time frame, the stock has corrected after a recent rally and has taken support near its 20-day simple moving average.
The prices are trading above all major short-term and medium-term moving averages and positive crossover can be seen in momentum indicators.
Traders can initiate buying at the current market price (CMP) and on any dip till Rs 475 for the short term gain.
After a prolonged downtrend, the stock is showing a sign of life. The short-term moving averages ribbon on the weekly time frame has developed a positive curve and prices are also trading above all medium-term moving averages.
The RSI is bouncing back from the important support level and other momentum indicators suggesting that a fresh leg of the rally can be expected in the stock in the coming days.
Traders can initiate buying at CMP and pyramid their positions by adding more if Rs 3,850 level trades on the higher side.
Glenmark Pharma: Buy | LTP: Rs 508.9 | Target: Rs 560 | Stop Loss: Rs 482 | Upside 10 percent
The bullish crossover of short-term and medium-term moving averages ribbon has been witnessed on the weekly chart along with a declining trendline breakout. The momentum indicators are trading in a bullish zone indicating strength in the counter.
The recent consolidation in the counter near its 50-day exponential moving average seems to be coming to an end and a fresh up move can be expected in the near term as the short term moving averages ribbon has started trading with a positive curve. Traders can initiate buying positions with a short term perspective.
Expert: Gaurav Garg, Head of Research at CapitalVia Global Research Ltd,
DLF Limited: Buy| LTP: Rs 161| Target: Rs 186.50| Stop loss: Rs 153| Upside: 15%
The stock has witnessed a reversal from its support level placed in the zone of further strength that might be gained if it sustains above 166.50.
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. BBTC Limited: Buy| LTP: Rs 1393| Trigger: Rs 1430| Target: Rs 1575| Stop loss: Rs 1370| Upside: 13%
The stock has formed a reversal pattern, if stock somehow sustains above 1430 might lead to positive momentum. The stock has seen a significant addition of volumes in recent days. Risk and reward is favorable at this juncture of time.
ICICI Bank: Buy| Trigger Price: Rs 375| LTP: Rs 369| Target: Rs 392| Stop loss: Rs 360| Upside 4.5%
The stock is bouncing from its support on daily charts and breakout might result for further strength which might lead the stock to break its weekly highs.
Expert: Expert: Shabbir Kayyumi, Head of Technical Research at Narnolia Financial Advisors Ltd
Bank of Baroda: Buy around: Rs 45|LTP: Rs 45| Target: Rs 54| Stop Loss: Rs 40| Upside 20%
The short-term correction seems to be over in the stock and bulls are likely to take the charge again. The higher high and higher low formations on the weekly timeframe suggests that bulls have entered the counter at lower levels.
Further, the line of parity on the daily chart is providing good support which gives an additional signal that the short-term rally might not be ruled out in the coming days.
Traders can initiate long positions around 45 with a stop loss of Rs 40, and the target of Rs 54.
State Bank of India: Buy around Rs 190| LTP: Rs 192| Target: Rs 215| Stop Loss: Rs 178| Upside 12%
Bargain hunting is seen at lower levels in the scrip from where it formed a strong base near 185-190 zones. Currently, the stock has given a consolidation range breakout on the daily chart in which it has been trading from the last few days.
The momentum oscillator RSI has also turned above 50 mark which suggests a reversal is round the corner. Other indicators and oscillators are also lending support to the price action.
A trader can take an entry from the level of 190 for the target of 215, and keep a stop loss of 178.
Expert: Gaurav Dua, SVP, Head Capital Market Strategy & Investments, Sharekhan by BNP Paribas
Divi’s Laboratories: Buy| LTP: Rs 3347| Stop Loss: Rs 3190| Target: Rs 3540-3715| Upside 11%
The stock has broken out on the upside after a short-term consolidation. Structurally, it has resumed the larger uptrend.
The daily Bollinger Bands have started expansion after a significant contraction, which suggests that a sharp move is in the offing.
The daily momentum indicator has started a new cycle on the upside from the equilibrium line whereas the weekly momentum indicator is already bullish. Dabur India: Buy| LTP: Rs 507| Stop Loss: Rs 487| Target: Rs 528-545| Upside 7.5%
After hitting a low of Rs 421 in May, Dabur has been moving up in a rising channel. A short term correction in August found support near the lower channel line as well as near the key weekly moving averages.
From there the stock started rallying again. The daily as well as the weekly momentum indicators are showing bullish signs suggesting further upside. The overall structure suggests that the stock is likely to witness a steady rise going ahead.
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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