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Last Updated : Apr 24, 2019 01:31 PM IST | Source: Moneycontrol.com

Top 5 stocks to buy ahead of F&O expiry for 10-13% returns in May series

Though VIX has been rising due to ongoing Elections, the recent correction in Nifty has accelerated the up move which is likely to cap the gains in the near term.

Ashish Chaturmohta
 
 
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Nifty is trading above its recent low of 11,550, and thus, the structure of higher highs and higher lows remains intact. Hence, 11,550 becomes the pivotal support for the market.

A close below 11,550 levels would break the uptrend and the decline could extend towards 11,310 levels. On the upside, 11,750-11,800 zone is likely to act as resistance for the market heading into this series' expiry.

On the options front, maximum open interest for puts is seen at strike price 11,500, while for calls, maximum open interest is seen at strike price 11,700.

India VIX closed at 24.64 level, up 2.45 percent. Though VIX has been rising due to ongoing elections, the recent correction in Nifty has accelerated the up move which is likely to cap the gains in the near term.

Here are top 5 stocks that could give 10-13% returns in the next 1 month:

L&T Technology Services: Buy| LTP: Rs 1,696| Stop Loss: Rs 1,630| Target: Rs 1,900| Upside 12%

The stock hit an all-time high of Rs 1,855 in September last year and since then it is consolidating its gains. The stock has been in sideways correction between Rs 1,800 and Rs 1,400 odd levels for the last eight months.

The price is now trading at breakout levels. Relative strength index has given positive crossover with its average levels on the daily chart.

Average Directional Index line indicator of trend strength has moved above the neutral level of 20 on the daily chart, indicating strength emerging in an uptrend.

MACD line on the weekly chart has given a positive crossover with its average and is now moving up from the equilibrium level of zero. Thus, the stock can be bought at current levels and on dips to Rs 1,680 with a stop loss below Rs 1,630 and a target of Rs 1,900 levels.

Voltas: Buy| LTP: Rs 622| Stop Loss: Rs 600| Target: Rs 700| Upside 12%

The stock touched an all-time high of Rs 675 in December’17 and since then it has been in a sideways correction for the last 14 months. The stock witnessed a breakout last month with momentum and good volumes.

Since then, the stock has been consolidating in a range of 40 odd points for the last six weeks. The Relative strength index has given a positive crossover with its average levels on the daily charts suggesting uptrend to continue.

The Average Directional Index line indicator of trend strength has moved above the equilibrium level of 20 on the weekly chart. Thus, stock can be bought at current levels and on dips to Rs 615 with a stop loss below Rs 600 and a target of Rs 700 levels.

UPL: Buy| LTP: Rs 943| Stop Loss: Rs 910| Target: Rs 1050| Upside 11%

The stock is in an uptrend and has been forming higher tops and higher lows since October low of Rs 582 last year. It crossed its previous all-time high of 902 last month and since then it has been consolidating near its all-time high levels.

On the weekly chart, the last three bars have seen narrowing of the trading range and is now showing a breakout from this range on the upside.

Recent dips in the price have taken support at the 21-day exponential moving average. Relative strength index has given a positive crossover with its average levels on the daily chart.

The stock can be bought at current levels and on dips towards Rs 930 with a stop loss below Rs 910 and a target of Rs 1050 levels.

Info Edge (India): Buy| LTP: Rs 1932| Stop Loss: Rs 1850| Target: Rs 2150| Upside 11%

The stock is in an uptrend forming higher tops and higher bottoms on the daily chart. The price is moving along 50-day moving average which is offering support to the stock on corrections.

In the last four months, the stock has witnessed good volumes which indicates buying participation in the stock at higher levels.

Relative strength index has given positive crossover with its average levels on the daily chart. Thus, stock can be bought at current levels and on dips towards Rs 1910 with a stop loss below Rs 1850 and a target of Rs 2150 levels.

DCB Bank: Buy| LTP: Rs 207| Stop Loss: Rs 197| Target: Rs 235| Upside 13%

The stock has been moving in a sideways to negative correction mode for the last 22 months. It has rallied from the last October low of Rs 140 levels, forming higher tops and higher bottoms on the weekly charts.

In early March this year, the stock witnessed a breakout from the correction with strong momentum. Since then, the stock has been consolidating between 210 and 190 odd levels for the last six weeks.

The rally from the recent low of Rs 190 has been backed with high volumes and the momentum indicates buying participation in the stock.

MACD line has given a positive crossover with its average on the daily chart. Thus, the stock can be bought at current levels and on dips towards Rs 203 with a stop loss below Rs 197 and a target of Rs 235 levels.

(The author is Head of Technical and Derivatives, Sanctum Wealth Management)

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his 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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First Published on Apr 24, 2019 01:27 pm
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