Aditya Agarwala
YES Securities (I) Ltd.
The Nifty index extended its 3rd impulse wave forming new all-time highs. Further, it is also approaching near the upper end of the channel resistance placed in the zone of 11,000-11,100.
However, the immediate resistance on the way up is placed at 10,780, and a failure to cross this resistance may trigger the start of 4th corrective wave dragging it to levels of 10,560-10,415.
Moreover, the relative strength index or RSI continues to form higher highs in line with price making higher highs affirming the strong bullishness dominant at the moment.
Bank Nifty has broken out of a long consolidation phase with healthy volumes suggesting an extended uptrend which can fuel a rally in the Nifty Index as well.
MidCap and SmallCap Indices, on the other hand, have reached an overbought territory portending to minor profit booking on the cards before it resumes its uptrend.
Here is a list of top 3 stocks which could give up to 20% return in the next 3-4 weeks:
PTC India Financial Services Ltd: BUY| Target Rs46| Stop Loss Rs35.50| Return 20%
On the weekly chart, PTC India Financial Services Ltd. (PFS) has taken support at the lower end of the bullish wedge pattern and is now approaching upper end of the wedge placed at 41 suggesting uptrend on cards (as indicated on chart).
A sustained trade above 41 i.e. neckline of the pattern on higher volumes may trigger a bullish breakout. On the daily chart, the stock has started forming higher highs and the higher low affirming start of a bull trend.
RSI has formed a positive divergence with respect to price after taking support at the 40 level. The stock may be bought in the range of 38-39 for targets of 43-46, keeping a stop loss below 35.50.
UltraTech Cement Ltd: BUY| Target Rs5150| Stop Loss Rs4240| Return 14%
On the weekly chart, Ultra Tech Cement Ltd. (ULTRACEMCO) has broken out from an ascending triangle pattern triggering a bull trend reversal. The neckline of the pattern is at 4500; sustained trade above the neckline with healthy volumes can extend the up move.
On the daily chart, the stock has broken out from a flag pattern on good volumes affirming strong bullishness. RSI has turned upwards breaking out of the upper band of the Bollinger Bands suggesting higher levels in the coming trading sessions.
The stock may be bought in the range of Rs4500-4530 for targets of Rs5000-5150, and keeping a stop loss below Rs4240.
Bajaj Finserv Ltd: SELL| Target Rs4450| Stop Loss Rs5220| Return 11%
On the weekly chart, Bajaj Finserv Ltd. (BAJAJFINSV) has broken down from a rising channel pattern triggering the start of a bear trend. Further, a sustained trade below 4910 can extend the downtrend in the coming trading sessions.
On the daily chart, it is on the verge of a breakdown from a bearish flag pattern suggesting weakening uptrend. Further, RSI has also broken down from the lower Bollinger band suggesting lower levels.
The stock may be sold in the range of 5030-5000 for targets of 4650-4450, keeping a stop loss below 5220.
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
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