Nifty to remain weak below 10,490; top 5 stocks which can give up to 5% return

Nifty has formed 'Hanging Man' followed by 'Shooting Star' candlestick pattern around supply zone of 10450-10490 levels on daily scale. It opened with gap-down but recovered from day's low and closed with loss of 15.95 points.

The index has to cross 10490 levels decisively to move higher and if it fails to cross this level, weakness could be seen towards 10290 and 10150 levels. Furthermore, RSI (14) has given a positive crossover which is a bullish sign.

Nifty Bank

The index has outperformed benchmarks led by strong short covering rally in PSU & Private banks after-market anticipated that RBI might cut key policy rates by 25 bps in August, which will lead to lending rate cuts, and in turn support growth.

It has formed Bullish candle and closed marginally above its 200 SMA of 24807 levels signifying a rally to continue in near term. But strong hurdle seen around 25100. It has to cross this level decisively to move further higher.

Below are the 5 stocks which can give up to 5% return in the near term:

Tech Mahindra | Rating: Buy | Target: Rs 652, stop loss: Rs 628 | Return: 2%

Canara Bank | Rating: Buy | Target: Rs 272, stop loss: Rs 250 | Return: 5%

Sun TV Network | Rating: Buy | Target: Rs 955, stop loss: Rs 910 | Return: 1%

TVS Motor Company | Rating: Buy | Target: Rs 657, stop loss: Rs 631 | Return: 2%

Britannia Industries | Rating: Sell | Target: Rs 4735, stop loss: Rs 4900 | Return: 2%

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