On shorter time frame, the levels 10,550 levels may act as near term hurdle i.e. 50 percent Retracement level, says Rajesh Agarwal, Head of Research at AUM Capital Markets.
Nifty rose for three consecutive weeks, surging 1.48 percent to close at 10,480.60. On a weekly time frame, the index has formed 'Three White Soldiers' which predicts reversal of a downtrend. It is likely to retest 10,650-10,670 levels on the upside: the Inner Trendline which might work as the immediate hurdle zone. On a shorter timeframe, 10,550 levels may act as a near term hurdle, which is its 50 percent retracement level.
RSI (14) has given a positive crossover on a weekly time scale. Moreover, indicators like the average directional index (14) is falling, which indicates a near-term consolidation for the index within a broader range.
The Nifty Bank has formed 'Three White Soldiers' candlestick pattern on a weekly timeframe, suggesting a possible change in trend. On the shorter timeframe, it has formed 'Doji' candlestick pattern around the hurdle zone indicating indecision among bulls and bears. It is currently trading within its two major moving averages of 50 SMA and 100 SMA.
A strong hurdle is seen around 25,420 levels. Now, the Nifty Bank has to cross this mark decisively for a further upmove. If the index fails to cross this level, it may correct till 24,700 zones. RSI (14) has given a Bullish Cross on a weekly scale which is a bullish sign.
Below are the top 5 stocks which can offer up to 16% return in the near-term:TVS Motor Company | Rating: Accumulate around Rs 652-655 | Target: Rs 720 | Stop loss: Rs 620 | Return: 10%
The stock has given a breakout from the 'Falling' trendline on the weekly chart indicating resumption of the previous uptrend. Strong March auto sales numbers is likely to boost investor sentiment in the near-term. Moreover, RSI (14) has given positive crossover which is a bullish set-up. Investors can accumulate TVS Motor around Rs 652-655 levels with a stop loss below Rs 620 for a target price of Rs 720 per share.Crisil| Rating: Accumulate around Rs 1,900-1,920 | Target: Rs 2,200 | Stop loss: Rs 1,750 | Return: 16%
The stock has formed a probable 'Cup & Handle' pattern around its strong support zone of Rs 1,760 levels. Sustenance trade above Rs 1,940 may add momentum on the upside. Moreover, MACD is trading around 'zero' level.
We expect the stock to retest its all-time high in the near-term till it sustains above Rs 1,750. Accumulate Crisil around Rs 1,900-1,920 levels with a stop loss at Rs 1,750 on a closing basis for a target of Rs 2,200 per share.Bajaj Auto | Rating: Buy around Rs 2,785-2,790 | Target: Rs 3,010 | Stop loss: Rs 2,700 | Return: 8%
Bajaj Auto has formed two consecutive 'Inverted Hammer' patterns followed by a ‘Doji’ candlestick around its inflection point, which is its upward sloping trendline and 78.60 percent retracement level on a weekly chart signifying possible change in trend. Moreover, RSI (14) has turned up from 35 levels which is a bullish sign. Indicators like directional movement indicator is indicating a halt in the current downfall as (-) DI is falling and (+) DI is turning flat. Buy Bajaj Auto around Rs 2,785-2,790 levels with a stop loss at Rs 2,700 on a closing basis for a target of Rs 3,010 per share.Jindal Steel & Power | Rating: Buy around Rs 248-251 | Target: Rs 279 | Stop loss: Rs 235 | Return: 12%
Jindal Steel & Power has given a breakout from the 'Descending Channel' on a daily time frame and closed above all its major moving averages. MACD has crossed the 'zero' mark which is a bullish set-up. Buy Jindal Steel around Rs 248-251 levels with stop loss of Rs 235 on a closing basis with a target of Rs 279 per share.Gujarat State Fertilizers & Chemicals | Rating: Accumulate around Rs 125-128 | Target: Rs 143 | Stop loss: Rs 120 | Return: 14%
Gujarat State Fertilizers & Chemicals has given a breakout from the small 'Inverted Head & Shoulder' pattern on a daily timeframe. It is a bullish reversal pattern signifying that prices will move higher from current levels. Oscillators like RSI and MACD are trading around positive territory. Accumulate GSFC around Rs 125-128 levels with a stop loss at Rs 120 on a closing basis for a target of Rs 143 per share.Disclaimer: The author is the Head of Research at AUM Capital Markets. The views and investment tips expressed by investment experts 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.