Aditya Agarwala
The Nifty started the week on a positive note following three days of correction. It has broken out of a falling channel, closing above its Friday’s high, confirming the bullish trend.
A sustained trade above 10,750 can extend the upmove to 10,900-11,000 levels. On the downside, 10,600 is a crucial support, which also happens to be the gap zone that the index filled in Friday’s trade.
A trade below 10,600 can halt this bullish trend, dragging the index lower to 10,530-10,460 levels.
Here is a list of top three stocks that could offer up to 13% returns in the next 30 days:
Axis Bank: Buy | Target: Rs 600 | Stop loss: Rs 510 | Return: 12%
On the weekly chart, Axis Bank has turned upwards after taking support at the lower end of an Ascending Triangle pattern indicating bullishness building up in the stock.
A trade above Rs 558 with healthy volumes can take the stock to the upper end of the pattern placed at Rs 625. On the daily chart, the stock is on the verge of a breakout from a wedge pattern after taking support at the 50 percent Fibonacci retracement level affirming bullishness.
Moreover, RSI has witnessed a range shift after taking support at the 50-level entering the bull zone affirming bullishness. The stock may be bought in the range of Rs 534-538 for the target of Rs 575-600, keeping a stop loss below Rs 410.
Bharat Electronics: Buy | Target: Rs 148 | Stop loss: Rs 124 | Return: 13%
On the weekly chart, Bharat Electronics (BEL) has turned upwards after taking support at the lower end of the bullish wedge pattern suggesting weakening downtrend.
On the daily chart, the stock has turned upwards after taking 189 percent Fibonacci extension level placed at Rs 128. Further, a sustained trade above Rs 135 can extend the uptrend.
RSI has turned upwards breaking out of the upper Bollinger Bands suggesting extended bullishness in the coming trading sessions. The stock may be bought in the range of Rs 171-175 for targets of Rs 186-195, keeping a stop loss below Rs 162.
Newgen Software Technologies: Buy | Target: Rs 283 | Stop loss: Rs 245 | Return: 11%
On the daily chart, Newgen Software Technologies (NEWGEN) has turned upwards after testing the neckline of the triangle pattern post bullish breakout.
Further, a sustained trade above Rs 254 which is 61.8 percent Fibonacci retracement level can extend the up move. RSI has entered in the bull zone after bearing out of broken out from upper Bollinger Band.
The stock may be bought in the range of Rs 253-256 for targets of Rs 271-283, and keep a stop loss below Rs 245.
Disclaimer: The author Technical Analyst at YES Securities (I) Ltd. 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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