Aditya Agarwala
The Nifty Index Fut. continues to oscillate in a trading range indicating consolidation phase. Currently, it is approaching the lower end of the range placed at 10270 and a breakdown from the lower end of the range can extend the corrections to levels of 10200-10150.
However, a sustained trade above 10270 can take it back to levels of 10600-10650 i.e. upper end of the trading range. Moreover, the breakout from the upper end of the range can trigger a short covering rally to levels of 10720-10820 being 50% and 61.8% Fibonacci retracement levels respectively.
The relative strength index or the RSI has turned lower from the neutral level of 50 confirming weakness persistent at the moment.
Here is a list of top three stocks which could give up to 20% return in the next 3-4 weeks:
Cox & Kings Ltd: BUY| Target Rs300| Stop Loss Rs225| Return 20%
On the weekly chart, Cox & Kings Ltd. (COX&KINGS) is on the verge of a breakout from a channel resistance line placed at 270 (as indicated on chart).
A sustained trade beyond the neckline of the pattern with healthy volumes can take the stock higher in the coming trading sessions.
On the daily chart, the stock has taken support at the 61.8% and turned upwards after forming a hammer candlestick pattern suggesting a temporary bottom formation is in place.
Moreover, RSI is forming higher lows indicating a shift in a range in favour of the bulls. The stock may be bought in the range of 246-252 for targets of 280-300, keeping a stop loss below 225.
Caplin Point Laboratories Ltd: BUY| Target Rs720| Stop Loss Rs575| Return 16%
On the weekly chart, Caplin Point Laboratories Ltd. (CAPLPOINT) has turned upwards after testing the lower end of the channel suggesting bullishness.
Further, it is on the verge of a breakout from the upper end of the channel placed at 652. A sustained trade above the neckline with healthy volumes can extend the up move.
On the daily chart, the stock is approaching neckline of an Inverse H&S pattern placed at 660 after taking support at the 61.8% Fibonacci retracement level.
RSI has turned upwards breaking out of the upper band of the Bollinger Bands suggesting higher levels in the coming trading sessions. The stock may be bought in the range of 615-625 for targets of 685-720, keeping a stop loss below 575.
Avanti Feeds Ltd: BUY| Target Rs2800| Stop Loss Rs2250| Return 15%
On the weekly chart, Avanti Feeds Ltd. (AVANTIFEED) is on the verge of a breakout from a bullish wedge pattern suggesting the start of a bull trend on cards. Further, a sustained trade above 2520 i.e. neckline of the pattern can extend the uptrend in the coming trading sessions.
On the daily chart, the stock continues to form higher highs and higher lows affirming the strength. Further, RSI has also broken out from the upper Bollinger band suggesting higher levels.
The stock may be bought in the range of 2400-2450 for targets of 2700-2800, keeping a stop loss below 2250.
Disclaimer: The author is Technical Analyst at YES Securities. 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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