Going forward, the bias is expected to remain sideward to negative. On the lower end, 10,600 may act as crucial support for the index. However, a sustained trade below 10,600 may induce correction towards 10,525-10,472 levels, says Achin Goel of Bonanza Portfolio.
On the hourly chart, the Nifty gave a breakdown of a ‘Head and Shoulder’ pattern, which led to a steep fall on Wednesday. On the lower end, the index slipped towards the 50% retracement of the previous rise from 10,417 to 1,893.
On further observation, Nifty is seen to have slipped below a range-bound pattern on the daily chart. The momentum oscillator, RSI has been hovering within the bands of 63 and 45, which suggests ongoing consolidation nature. A penetration below 45 will would mean negative range shift in the index momentum.
Going forward, the bias is expected to remain sideward to negative. On the lower end, 10,600 may act as crucial support for the index. However, a sustained trade below 10,600 may induce correction towards 10,525-10,472 levels.
At the higher end, the Nifty has resistance placed at 10,750, and if the index closed above this level then the pullback target is placed around 10,850/10,910 over the short term.
Here is a list of top three stocks which could give 8-14% return in about a month:
Aurobindo Pharma: Buy| CMP: Rs 616.40| Target: Rs 700| Stop loss: Rs 584 | Return: 14%
The stock has been in a consolidation phase after a trend line breakout on the daily chart. In addition, the price has formed a green candle with the backing of decent volumes.
The momentum oscillator, RSI (14) has been in a bullish crossover and currently hovering strongly around 59.75. Moreover, MACD is in Buy mode.
Traders can accumulate the stock in the range of Rs 610-617 for the target of Rs 700 with a stop loss below Rs 584.
Bharti Infratel: Buy | CMP: Rs 299.55 | Target: Rs 330 | Stop loss: Rs 284 | Return: 10%
The stock is showing signs of a reversal from its long downwards pattern on the daily chart. On the weekly chart, a Hammer candlestick pattern is formed which suggests growing optimism in the stock.
The momentum oscillator, RSI (14) saw a bullish crossover and is currently hovering strongly above 50 for the first time in several days. Moreover, MACD is in a buy mode.
Traders can accumulate the stock in the range of Rs 297-300 for the target of Rs 330 with a stop loss placed below Rs 284.
Dabur India: Buy | CMP: Rs 393.50 | Target: Rs 424 | Stop loss: Rs 379 | Return: 8%
On the daily chart, the stock has moved above the falling trendline which indicates the demand has surpassed the supply in the stock which in turn may take the stock price upward over the very short term.
In addition, price breakout was backed by a spurt in volumes. The momentum oscillator RSI (14) has entered in a bullish crossover and currently hovering above 65.
Traders can accumulate the stock in the range of Rs 390-394 for the target of Rs 424 with a stop loss placed below Rs 379.Disclaimer: The author is Head of Wealth Management and Financial Planning, Bonanza Portfolio Ltd. The views and investment tips expressed by investment experts 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.The Great Diwali Discount!
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