The Nifty50 closed 1.7 percent lower for the week ended September 29, and for the month, it fell by 1.3 percent signalling a bearish bias. The Nifty made bearish candles in 4 out of 5 trading sessions last week.
The index broke below key support levels but managed to get some support around its 100-days exponential moving average (DEMA) placed at 9,716 which led to a bounce back above 9,750 levels.
Now, the bigger question is -- whether the short-term correction is over or still there is some pain left in the market?
The pain in the markets is far from over, suggest technical experts. For our markets to inch higher, it requires fresh triggers. The earnings for the quarter ended September are likely to remain subdued, which will further dent sentiment.
“It would be very difficult for our markets to maintain this optimism in the near term. Yes, larger degree Bull Run is certainly not over; but, the market needed some kind of breather and we are most probably would experience it in weeks to come,” Sameet Chavan, Chief Analyst- Technical and Derivatives, Angel Broking told Moneycontrol.
Technically speaking, the weekly chart looks distorted and the way ‘RSI-Smoothened’ has shaped up, is not an encouraging sign for our market.
“This week, somehow bulls managed to defend 9685; but, going ahead, we do not expect the same kind of strength to be infused in the market. Going ahead, 9,854 – 9,921 would be seen as a sturdy wall for the index,” said Chavan.
He further added that on the flipside, we may see index sliding below 9685 to test lower levels of 9,640 – 9,560 in days to come. Traders are advised to stay light and not to get carried away by such bounce backs.
Here is a list of top 8 stocks which could give up to 14 percent upside in the short term:
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
Balrampur Chini Mills: BUY| Target Rs 178 | Stop-loss: - Rs 152 | Return 10%
Balrampur Chini recovered after healthy consolidation to trade at uptrend momentum coupled with volume breakout at several price-level.
The momentum on the backdrop of volume support channelled a scrip to trade at the bullish trajectory and formed a higher-level.
Despite failing to cohere at its 52-week high on a closing basis, the stock continued to hover around the same range. On the daily price chart, the stock formed a bullish candlestick pattern after a short consolidation, indicating a continued momentum at the upper level.
The momentum indicator further suggests a strong support for bullish sentiment at current price level. The support level for scrip is currently placed at 143 and resistance is placed at 188
We have a BUY recommendation for Balrampur Chini, which is currently trading at Rs 160.9
Thermax: BUY| Target Rs 1005 | Stop-loss: - Rs 920 |Return 6%
After a sharp consolidation during the early trading session, Thermax witnessed a quick rebound to trade at uptrend regime in its weekly price chart.
The stock registered a robust price-volume support toward the weekend session to form a bullish uptrend. On the weekly price chart, the stock formed a relative bullish candlestick pattern coupled with cup & handle kind of pattern on its daily price chart.
Further, the secondary momentum indicator suggests a strong support for uptrend with RSI at 60 coupled with a bullish crossover of MACD taking place at current trend.
The stock also witnessed a decisive breakout from its 200-days EMA, signalling positive cues in next session. Currently, it is facing a resistance at 1031 and support level at 907.
We have a BUY recommendation for Thermax, which is currently trading at Rs 950.75
Future Retail: BUY| Target Rs 553 | Stop-loss: - Rs 514 |Return 5%
Future Retail witnessed a positive reversal trend after trading near the lower bottom and gained a price-volume momentum in tentative trend.
Despite a consolidation in early trade, the stock saw major volume support at lower-level as price rebounded to give reversal momentum.
In weekly price chart, the stock made a bullish reversal-trend indicating a halt in consolidation regime in short-term.
Following a momentum indicator, which supports bullish uptrend with RSI at 57 coupled with MACD at 2.63 showing crossover from its signal-line.
Further, the stock managed to close above its 20-days EMA in last trading session, suggesting a major pullback from the current level.
The stock is currently facing upper-resistance at 579-level and support at 512-level. We have a BUY recommendation for Future Retail, which is currently trading at Rs 526.50
GRUH Finance: SELL| Target Rs 471 | Stop-loss: - Rs 507 |Return 4%
GRUH Finance continued with downward spiral throughout the trading session losing about 10 percent on weekly basis. The stock made a lower bottom on a closing basis and continued to trade below its crucial support level placed at 502.
On the weekly price chart, the stock formed a bearish candlestick pattern which is expected to keep the stock under consolidation phase without easy breakout in short-term.
Further, the price is currently below its 50-days EMA, indicating a negative outlook going forward. Further, the bearish crossover coupled with negative market sentiment is more likely to keep the stock under pressure.
The stock is facing its resistance at 523-level while the support level is seen at 463. We have a SELL recommendation for GRUH Finance which is currently trading at Rs 491.65
Brokerage Firm: SMC Global
Coal India: BUY| Target Rs 300| Stop Loss Rs 250| Time 1-2 months| Return 11%
The stock closed at Rs 267.80 on 28th September 2017. It made a 52-week low at Rs 233.70 on 11th August 2017 and a 52-week high of 337.30 on 10th November 2017.
The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 273.17.
As we can see on charts that stock was consolidating in the range of Rs 230-265 levels for three months and formed an “Inverted Head and Shoulder” pattern on daily charts, which is bullish in nature.
Last week, the stock gained over 5 percent and gave the neckline breakout of pattern and also manages to close above the same, so follow-up buying may continue for coming days.
Therefore, one can buy in the range of Rs 262-265 levels for the upside target of Rs 295-300 levels with a stop loss below Rs 250.
ONGC: BUY| Target Rs 195| Stop Loss Rs 158| Time 1-2 Months | Return 14%
The stock closed at Rs 171.55 on 28th September 2017. It made a 52-week low at Rs 155.20 on 27th June 2017 and a 52-week high of Rs 211.80 on 31st January 2017.
The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 171.81. The stock witnessed decent correction from 205 to 155 levels in the single downswing with a short span of time.
Thereafter, it was consolidating in a narrow range of Rs 155-170 levels for four months and gave the breakout of same during last traded week by gaining over 4 percent.
Moreover, the stock is likely to form the “W” pattern on weekly charts, which indicates the positive outlook for the stock. Therefore, one can buy in the range of Rs 168-170 levels for the upside target of Rs 190-195 levels with a stop loss below Rs 158.
Analyst: Sameet Chavan, Chief Analyst- Technical and Derivatives, Angel Broking
FDC: BUY| Target Rs 200| Stop Loss Rs 179| Time 14-21 sessions| Return 7%
After a long consolidation, the stock managed to show some strength after breaking above the daily ’89 EMA’ level of 180 convincingly.
The volume activity indicates massive buying interest among market participants, which is an encouraging sign for the stock.
Importantly, during the recent corrective move in the index, the stock stood firm and maintained its positive territory.
Hence, we recommend buying this stock at current levels for a target of Rs 200 over the next 14-21 sessions. The stop loss now should be fixed at Rs 179.
Bata India: SELL| Target Rs 642| Stop Loss Rs 706| Time 5-10 sessions| Return 6%
This stock has given a massive price appreciation from June month low and now since last 5 – 6 days has been experiencing some profit booking, which we believe was quite evident.
The daily chart looks negatively poised as the key short-term moving averages confirmed a bearish crossover last week and going ahead would be seen as a sturdy wall for the stock.
One can sell this stock for a target of Rs 642 over the next 5-10 sessions. The stop loss should be fixed at Rs 706.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
