People worship Lakshmi, the Hindu goddess of wealth on this day. (Image: Reuters)
The Nifty50 which opened with a gap hit a fresh record high of 9,915.40 on Monday but pared gains as investors preferred to book some profits at higher levels.
The index showed a strong up move in the previous week as Nifty50 rose 2.26 percent. However, in Friday’s session, index witnessed some profit booking after hitting a record high.
Nevertheless, the long term trajectory of the market will remain towards an upward trend. On the technical front, Nifty formed a hanging man formation on Friday indicating a possibility of short term consolidation.
“The RSI of Nifty is at 75 indicating a buying sentiment, while the MACD at 69 indicating price trading above its Signal Line. On the basis of moving average, Nifty is currently trading above its EMA,” Dinesh Rohira, Founder & CEO, 5nance.com told Moneycontrol.
“The Nifty is expected to witness a major support at 9,650 level while the short term resistance will be tested at 9,910 level. Any decisive breakout from the upper brand is expected to build next set of the rally to reach 9,950 level in the short run,” he said.
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Analyst: Vidnyan Sawant, Senior Technical Analyst at GEPL Capital
Jubilant Foodworks: BUY| Target Rs 1350| Stop Loss Rs1048| Return 15%
The company has created a strong demand zone around the 900 mark, with multiple touch points from the last two months. Last week the stock has given an Inverted Head & Shoulder pattern breakout on the weekly charts and the upside projection of this pattern would be 1320 – 1350 in coming future.
The weekly RSI oscillator is placed at 63 level which indicates strong bullish momentum is intact. The stop for the stock would be at Rs1048 mark.
Aurobindo Pharma: BUY| Target Rs810| Stop Loss 714| Return 8%
The scrip has given a price breakout at Rs730 level with volume confirmation. The level assumes further significance as it corresponds to the calendar year high.
The stock is in a rational Bullish Trend with the formation of Higher Top Higher Bottom sequences in all the time frames viz Daily, Weekly as well as Monthly.
We have seen that the medium term 13 (694) & 34 (661) exponential moving averages have remained positively aligned since last 1 month on daily charts, which is add on the cause for current bullish momentum to sustain.
The indicator like RSI is showing a positive crossover and currently placed at 77, which indicates a positive move may possible in near future. One may peg the bets at Rs790 to Rs810 with a stop placed below the Rs714 mark.
ACC: BUY| Target Rs1922| Stop Loss Rs1700| Return 9%
The stock has formed a Big Bullish candle in the last week and close just shade short of its all- time high level. The upmove of the stock is confirmed by the volume breakout as well and also the Delivery percentage is high and above average which is around 40 percent.
The weekly momentum indicator ADX is moving towards the upside and placed at around 22 mark which indicates current up-move would sustain in coming future.
GEPL Capital expects, if price sustained above Rs1780 then it would further move up around 5% - 8%. The stop maybe placed at around the Rs1700 mark.
CESC: BUY| Target Rs950| Stop Loss Rs870| Return 5%
The stock has created a strong demand base at around Rs830 – 850 level from the last 3 weeks. In the last trading session, the stock has formed a Bullish Engulfing candlestick pattern on the daily chart with volume confirmation which is a strong positive signal for coming future.
The stock also gave a previous three-week consolidation breakout on weekly chart which is add on the cause for the current Bullish scenario. The daily RSI indicator is showing positive crossover and currently placed at 57 mark which indicates upside space is available in days to come.
We expect a move onto Rs950 (around 5%) from current levels, which if crossed further may move onto Rs980. A stop loss can be placed at Rs870.
IOC: SELL| Target Rs325| Stop Loss Rs405| Return 12%
The stock is continuously underperforming the Benchmark Index since last 2 months. We witnessed, Bearish Lower Top Lower Bottom formation has been maintained in all the time frames (like Daily, Weekly, Monthly).
We have seen that the medium term 13 (386) & 34 (398) exponential moving averages have remained negatively aligned since last 1 month on daily charts. The prices are on course for a correction further below the 3-month lows of around the Rs371 mark.
We feel this may lead to the Rs345-325 levels further down. The bearish view would stand negated only on a closing above the Rs405 mark which would be our stop-loss.
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
Aditya Birla Fashion & Retail: BUY| Target Rs207 | Stop-loss Rs170 |Return 14%
The stock came under pressure for a couple of trading period on the backdrop selling pressure forming a lower level on a closing basis.
However, the stock gained a momentum after a volume growth witnessed during the recent trading session to trade on a positive trajectory.
The reversal of its downward trend eased the sentiment in the market as the stock gained about 3 per cent on weekly basis and closed at a higher level.
On the technical chart, it formed a bullish candlestick pattern indicating a continued momentum in next session.
The RSI of stock stood at 55 indicating a sideways movement but on bullish trajectory. Further, the MACD at 0.42 indicates a strong sentiment as price stated to trade above Signal Line.
The stock will witness a breather support at 174 level while the upper barrier will be seen at 188. The possibility of a breakout from this level is expected to form new higher level at 205 level in short term.
We have a BUY recommendation for AB Fashion which is currently trading at 181.45.
Transport Corporation of India: BUY| Target Rs360| Stop-loss Rs309| Return 11%
TCI ended its downward spiral witnessed throughout the week on sell-off regime but regained the uptrend movement on Friday's trade forming a bullish reversal pattern in its daily chart.
Despite closing on a negative level it managed to form a positive trajectory in technical chart backed by volume growth. The RSI of stock at 60 supports the buying regime in current level which will be witnessed during next week’s trading session.
Further, the stock has a relative support at 320 level which managed to hold throughout the week. On the upper side, the stock is currently facing resistance at 349 level, which is expected to be the next week’s trading range.
A decisive breakout from this level will give a major rally to trade near a 52-week high. We have a BUY recommendation for TCI which is currently trading at Rs324.95.
Aurobindo Pharma: BUY| Target Rs795| Stop-loss Rs725 |Return 7%
Regardless of muted movement during the first 3 trading session on the backdrop of a technical glitch, Aurobindo witnessed a strong upward momentum on Friday's trading session to gain about 7 per cent on weekly basis and closed with positive trajectory.
The bullish reversal trend formed the after muted trend has ended the downward trend indicating a positive movement hereon. The RSI of stock suggests a strong buying sentiment which stood at 70 coupled with a crossover of MACD at 22.7 from Signal Line indicating an uptrend.
On the basis of moving average, the stock will witness a major support at 690 while the upper resistance will test at 760 level. We have a BUY recommendation for Aurobindo Pharma which is currently trading at Rs745.75.
ACC: BUY| Target Rs1835 | Stop-loss Rs1725 |Return 5%
The ACC Cement Ltd. went through series of consolidation phase during the past weeks trading session but gain the reversal momentum on positive trajectory after hovering around 1550 level.
The bullish reversal pushed forward the price towards 52-week highs and continued the upward momentum to date. On weekly basis stock gained 8 per cent on the positive cues.
The stock is technically trading at bullish trajectory with RSI at 68 still giving a buy sentiment. Further, the MACD of the stock indicates strong uptrend as price still trading above its Signal Line.
The major support in the upcoming session will hold at 1674 level while the upper breath will be poise at 1775. We have a BUY recommendation for ACC which is currently trading at 1752.60.
IIFL Holdings: BUY| Target Rs612 | Stop-loss Rs578 |Return 2%
IIFL remains in a consolidation phase throughout the week but it decisively closed on a positive trajectory on the backdrop of volume momentum.
The stock formed a bearish pattern on daily chart in the early trading period but managed to end the reverse trend. The RSI of stock stood on sideways cues at 56 but the buying sentiment at this level is on the higher side.
Similarly, the crossover of MACD at 12.7 of stock from its signal line is giving a strong technical outlook. On the basis moving average, the stock is currently trading above its 20-days SMA indicating a positive sentiment.
The stock will witness immediate support at 590 level while the upper circuit will test at 610 level. The breakout from this level will build next bull rally in next upcoming session to trade at 625 level.
We have a BUY recommendation for IIFL which is currently trading at 598.10
Analyst: Sameet Chavan, Chief Analyst- Technical and Derivatives, Angel Broking
Tata Chemicals: BUY| Target Rs675| Stop Loss Rs619| Return 6%
A massive rally in first four months of the calendar year was followed by some price-wise as well as time-wise correction in the stock.
Due to Friday’s up move, the stock prices have managed to penetrate the ‘Downward Sloping Trend Line’ resistance of 630 with decent volumes. In addition, the ‘RSI-Smoothened’ on the daily chart has started moving northwards after taking a resistance at the 30 mark.
All these evidence suggest the possibility of a good near term rally in the stock. Hence, traders are advised to buy this stock at current levels and on declines at Rs.634 for a target of Rs.675 over the next 14 – 21 sessions. The stop loss should be fixed at Rs.619.
Godrej Industries: SELL| Target Rs631| Stop Loss Rs684.25| Return 4%
We have witnessed a spectacular rally in this stock in last six months as the stock prices gave a massive appreciation of nearly 50% in such a short span. However, we can now observe some early signs of exhaustion on the daily chart.
We can see a cluster of ‘narrow range’ candles around the 680 mark. More importantly, the stock prices are now moving quite far from the ‘5 EMA’ on weekly as well as a monthly chart.
When such development happens, we see some profit taking to pull the prices towards the moving average. Thus, despite being in a strong up trend, we would expect some breather in the near term.
We recommend selling this stock at current levels for a target of Rs.631 over the next 6 – 8 sessions. The stop loss should be fixed at Rs.684.25.
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