“The recent hurdle placed around 10640 has been crossed on a closing basis and thus we may see an extension of this move towards 10,750 – 10,800 in coming days. On the lower side, the immediate base seems to have shifted higher towards 10,640 – 10,600 (earlier hurdle becomes support) from 10,495,” said Sameet Chavan of Angel Broking.
The Nifty ended April 27 expiry week closer to 10,700 levels, up 1.2 percent week-on-week. Given the current momentum on D-Street, the index is on track to hit 10,800-10,900 levels, experts said. “There was lot ambiguity among market participants after approaching the Nifty approached its strong resistance zone of 10,600-10,640. But, it managed to breakout post the April expiry.
Sameet Chavan, Chief Analyst - Technicals and Derivatives at Angel Broking, sees the Nifty heading towards 10,750-10,800 levels in the short-term. “Despite some terrible days in the global market, our benchmarks managed to shrug off all these developments and displayed their independence. The recent hurdle placed around 10,640 has been crossed on a closing basis and thus we may see an extension of this move towards 10,750-10,800 in days ahead. On the lower side, the immediate base seems to have shifted higher towards 10,640-10,600 (earlier hurdle becomes support) from 10,495 levels.”
Chavan advises traders to trade with a stock specific positive bias and look to lighten positions around 10,750- 10,800 levels. “One needs to keep booking timely profits and should rather shift stop losses higher at 10,640-10,600 levels.”
We have collated a list of top 10 stocks which could give up to 14% return:
Analyst: Sameet Chavan- Chief Analyst, Technicals and Derivatives at Angel Broking
Wockhardt: BUY | Target: Rs 863 | Stop loss: Rs 793 | Return: 8.8%
We remain upbeat on this stock with a near-term view. Post the January month correction, this stock slipped into a consolidation mode. Now, after three months, the stock prices burst through this congestion zone and thereby confirms a neckline breakout from the ‘Inverse Head and shoulder’ pattern.
The volumes during this price action were almost thrice of its average daily volumes, indicating strong buying interest after the base building process.
Thus, we expect the stock to extend this rally and eventually climb towards our near-term target of Rs 863. Traders can shift their stop losses to Rs 793.
Bata India: BUY | Target: Rs 857 | Stop loss: Rs 763 | Return 8%
Since the last couple of weeks, this stock has been consolidating in a small range. Last Friday, we witnessed a complete gush in the last couple of hours of the trade. The stock prices surged quite abruptly to confirm a breakout from the near term hurdle of Rs 791 on a closing basis.
This was accompanied by humongous volumes, providing credence to this move. However, due to lack of follow up buying, the stock once again slipped into a consolidation mode.
But, the overall structure still remains bullish. Hence, one can look to go long for a target of Rs 857 by following a strict stop loss below Rs 763.
MCX India: BUY | Target: Rs 857 | Stop loss: Rs 763 | Return 8%
Recently, this stock managed to give spectacular recovery after forming a strong base around the Rs 700 mark. If we combine, daily and weekly time frame charts, the stock seems to be on the verge of a breakout.
The volume activity during Friday’s surge picked up substantially, indicating some sort of buying interest around its recent hurdle. Hence, with anticipation, one can look to go long for a target of Rs 857 by following a strict stop loss below Rs 763.
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
Gravita India: BUY | Target: Rs 220 | Stop loss: Rs 187 | Return 10%
Gravita India witnessed a strong rebound in the last month after consolidating from earlier peak to take a crucial support at Rs 146 levels. Thereafter, it maintained to trade on uptrend trajectory.
Last week it made a fresh peak on its daily price chart although it couldn’t to hold the level but signaled a positive breakout from its upper band. The scrip made a 12 percent gain on a weekly basis.
The scrip formed a strong bullish candlestick pattern on its weekly price chart after forming a reversal pattern in past session.
Further, a secondary momentum indicator witnessed a revival with weekly RSI level shifting upward at 68 coupled with positive cue intact on MACD.
The support level for scrip is currently placed at Rs 177 and resistance level from the upper band at Rs 134. We have a buy recommendation for Gravita India which is currently trading at Rs 199.75
Prakash Industries: BUY | Target: Rs 237 | Stop loss: Rs 205 | Return 8%
The scrip witnessed a health consolidation from Rs 256 levels towards Rs 168 levels on its daily price chart during past session before creating a reversal trend.
The scrip took a strong support at lower band and continued to rebound on uptrend trajectory coupled with strong volume support. Further, it managed to break out from its crucial short-term EMA levels in the last session indicating a positive trend.
On the daily price chart, after closing with about 4 percent intraday gain the scrip made a decent bullish candlestick pattern. The weekly RSI level at 62 coupled with positive divergence on MACD indicates a momentum for the scrip in coming session.
The scrip has a support at 186 levels and resistance level at Rs 262. We have a buy recommendation for Prakash Industries which is currently trading at Rs 218.85.
Rallis India: SELL | Target: Rs 206 | Stop loss: Rs 228 | Return 6%
Rallis India continued to consolidate on its daily price chart despite making a decent attempt to recoup the loss but the selling pressure at higher level aided the price to breach below its crucial level placed at Rs 238. Further, during a closing session, the price got below its 20 and 50-days EMA levels indicating a negative signal.
The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below 20-days EMA level indicating a sustained pressure.
Further, the secondary momentum indicator continued to indicate negative signal with RSI at 38 levels coupled with bearish crossover just happening on MACD line.
The scrip is facing a resistance at Rs 235 levels and support at Rs 198 levels. We have a sell recommendation for Rallis India which is currently trading at Rs 219
Analyst: Rohit Srivastava, fund manager – PMS Sharekhan by BNP Paribas
PTC India: BUY | CMP: Rs 89.70 | Stop loss: Rs 86.70 | Target: Rs 102 | Return: 14%
The daily chart of PTC India shows a ‘Three Wave’ correction after a Five Wave rise. The correction retraced nearly 78.6 percent of the rise, which proved to be a crucial support. The daily lower Bollinger Band also offered support.
As per Elliott Wave Theory, PTC India is expected to form another set of a Five Wave rise from the current level. There is a high probability that the stocks will head higher from current levels and investors can initiate fresh positions on the long side.
Piramal Enterprises: BUY | CMP: Rs 2635.80| Stop loss: Rs 2550 | Target Rs 2900 | Return: 10%
Piramal Enterprise witnessed a multi-month correction from the highs of Rs 3070 registered in June last year. The correction looks over in the last month at the low of Rs 2275. Thereon the stock seems to have embarked on a fresh rally, which can last for several months.
Thus the stock looks positive from short-term as well as medium-term perspective. It is moving up along with a rising trendline which is a positive sign for the bulls.
The recent structure shows that the stock has consolidated above the trendline and has also broken out from the narrow range in which it was consolidating on the upside.
Ceat: BUY | CMP: Rs 1559.85 | Stop loss: Rs 1508 | Target: Rs 1787
In terms of price patterns, Ceat is forming an ‘Inverted Head & Shoulders’ pattern, which is a bullish pattern. The pattern is spanning over several weeks so the implication of the pattern breakout is likely to be significant.
Currently, the stock is forming right shoulder of the pattern. Hereon, it is expected to head towards the neckline and can eventually breakout on the upside. The risk-reward ratio at this level is very attractive to take a fresh long position.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
ICICI Bank: BUY | Target: Rs 315| Stop loss: Rs 271 | Return 9.3%
This counter appears to have resumed its up move after posting a short-term bottom at recent lows of Rs 275 levels. As momentum in broader markets is picking up with Bank Nifty also on the verge of a fresh breakout, this counter shall able to clear its immediate hurdle of Rs 295 with ease.
Once that happens it can head towards its initial targets of Rs 315. In anticipation of such a breakout positional traders are advised to buy into this counter for a target of Rs 315 with a stop of Rs 271.Disclaimer: The views and investment tips expressed by investment expert 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.The Great Diwali Discount!
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