Nifty likely to face resistance at 10,375; 3 stocks which could give up to 17% return

Aditya Agarwala
YES Securities

The Nifty Index Futures reversed in trade gaining for three days in a row after taking support at the 50 percent Fibonacci retracement level of the previous up-move i.e. 9695-10530, placed at 10110 levels.

However, on the way up, it is facing stiff resistance at the 61.8 percent Fibonacci retracement level placed at 10375. A sustained trade above this resistance can extend the up move to levels of 10485-10530.

However, failure to take out this resistance can trigger corrections dragging it lower to levels of 10220-10150. Moreover, a close below 10150 can accentuate the downfall to levels of 9972.

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Aditya Agarwala

Senior Technical Analyst - Institutional Equities|YES Securities Ltd

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Here is a list of top 3 stocks which could give up to 17 percent return in 3-4 weeks:

Mcleod Russel India Ltd: Buy | Target Rs 202| Stop loss: Rs 157

On the weekly chart, Mcleod Russel India Ltd. has broken out from a Wedge pattern triggering a bull trend reversal. The neckline of the pattern is at 173; a sustained trade above this resistance can take it to levels of 195-202.

On the daily chart, it has broken out from a downward sloping channel affirming the bullishness. RSI has also broken out of the upper end of the Bollinger Bands, suggesting a continuation of the uptrend.

The stock can be bought in the range of Rs171-173 for the target of Rs195-202. Investors should keep a stop loss below Rs157

Praj Industries Ltd: Buy | Target Rs 101| Stop loss: Rs 80

On the weekly chart, Praj Industries Ltd. (PRAJIND) has broken out from a Wedge pattern resistance line affirming strong bullishness dominant at the moment.

Further, the relative strength index or RSI on the weekly chart has taken support at the 50 level. It has also broken out from a Bollinger Band squeeze.

On the daily chart, it has broken out from a Pennant pattern on strong volumes affirming strength in the stock. The stock can be bought in the range of Rs86-88 for targets of Rs96-101, keeping a stop loss below Rs80.

Quess Corp Ltd: Buy | Target Rs 960| Stop loss: Rs 830

On the daily chart, Quess Corp Ltd is on the verge of a breakout from a trend line resistance placed at 882. Breakout on good volumes can trigger a bull trend reversal.

Further, it has turned higher after taking support on multiple occasions at the 790 level affirming bullishness building up in the stock.

RSI on the daily chart has turned upwards after forming a positive divergence portending to higher levels in the coming trading sessions. The stock can be bought in the range of 861-867 for targets of 915-960, keeping a stop loss below 830.

Disclaimer: The author is Technical Analyst, 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.