By Mustafa Nadeem
The Nifty50 had a flat session post a rally of 160 points in the last three days. On the charts, Nifty Future has formed a Doji indicating the indecision at the upper resistance levels.
The Nifty had a gap-up opening and attempted to pass through a major resistance level of 10,450 but could not sustain at higher levels. It made of a low of 10,392 and managed to close near the day's open at 10,242.50.
The upthrust may sustain only if we can see closing above the resistance levels of 10,450 levels. Thereafter, we may have gates opened for higher targets of 10,550-10,650.
On the upside, 10,650 is a very strong resistance. The Nifty had taken support at 10,390 levels on Wednesday which indicates mild bullishness in the current case.
The volatility has gone down in the last 4 days. We have seen some major value picking at lower levels in midcaps and the largecaps.
The Nifty has bigger targets once we successfully close 10,450 levels. Thereon, 10,620/10,640 are levels to watch out for in near term. This is where the stiff resistance would come.
Broadly, if we cannot sustain at these levels then the downside is open to 9,950 Levels from where Nifty reversed. The current short-term resistance comes at 10,450-10,460 levels whereas on the downside 10,350-10,150 are the major support levels.
Here is a list of top 3 stocks which could give up to 5% return in the short term:
Manappuram Finance: BUY | Target: Rs 128| Stop loss: Rs 120| Return: 4%
The stock has outperformed well with good volumes and has given a closing near Wednesday’s high which is a bullish sign. The RSI and CCI are bullish on the daily chart and a golden crossover has also been seen on the hourly chart. We recommend buying from current level for the target of Rs 128 with the stop loss of Rs 120.
Srei Infrastructure Finance Ltd: BUY | Target: Rs 90| Stop loss: Rs 82 | Return: 5.8%
The stock is rangebound on the daily chart with average volumes and trading at trend line resistance level on the daily chart. The RSI and CCI are also bullish on the hourly & daily chart. We recommend to buy from current level for the target of Rs 90 with the stop loss of Rs 82.
PC Jeweller Ltd: BUY | Target: Rs320 | Stop loss: Rs 295| Return: 4%
The stock was is in a downtrend but rose on Wednesday with good volumes. We can make long position with good risk-reward ratio with the target of Rs 320 with the stop loss of Rs 295.
Disclaimer: The author is CEO, Epic Research. 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.
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