By Dinesh Rohira
The Nifty50 continued to trade on the sluggish outlook on the backdrop of escalating geopolitical issue coupled with weak domestic triggers, which prolonged the neutral stance towards the weekend session and closed with a marginal gain at 9,934 level.
However, the index managed to hold above its psychological level which kept the bull sentiment perpetual, which is expected to build a favourable range bound trade if it doesn’t break out from crucial support.
The marginal uptrend momentum witnessed during the end session formed a hanging man pattern on its weekly price chart, which is expected to keep blur trajectory in coming sessions.
The index further witnessed a bounce back from earlier downtrend to trade at near its 20-days EMA. The Nifty is expected to continue with similar price-fence unless market witness a major trigger to break out at either side with trading range at the 9835-9995 level.
Here is a list of top four stocks which can give up to 10% return in the short term:
Rain Industries Ltd: BUY| Target Rs. 156 | Stop-loss Rs 132 |Return 10%
The stock witnessed a strong rebound after consolidating at a lower level in the past month and continued to trade at a favourable outlook. With new momentum indicated in the current trading session coupled with new volume setup, it is expected to build major breakout from its current level.
The weekly price chart further aided a bullish sentiment as it continued to form strong uptrend candlestick pattern coupled with momentum indicator favouring the buying price regime.
Further, with current price trading above its 20-days, EMA indicates a strong support for an uptrend. Based on EMA the stock will witness a major support at Rs 132-125 level, while the resistance level will be seen at Rs 163.
We have a BUY recommendation for Rain Industries which is currently trading at Rs 141.95
V-Guard Industries Ltd: BUY| Target Rs 215 | Stop-loss Rs 185 | Return 7%
Despite trading on a negative trajectory towards the weekend session, V-guard Industries has been trading in an uptrend regime throughout the week with about 7 percent weekly gain.
The momentum was further aided by volume support as the stock continued to trade at the new price range. Further, on the weekly price chart, it continued to trade with uptrend momentum and managed to close above previous level parallel to volume growth.
The RSI at 61 aided the momentum with favourable buying regime coupled with a bullish crossover of MACD from its Signal-Line indicating sustained uptrend. The stock will face a major resistance level at 220, while the support level will be seen at 182.
We have a BUY recommendation for V-Guard which is currently trading at Rs 200.35
Sun Pharmaceutical: SELL| Target Rs 449 | Stop-loss Rs 483 | Return 5%
The stock came under pressure amid weak cue in a trend that dragged Sun Pharma to trade at negative trajectory throughout the week on the backdrop of mounting selling pressure.
Despite gaining a momentum during the early trading period which took stock to Rs 503-level, it failed to cohere within this range bound and took to lower level at Rs 471.
Further on the weekly price chart, it formed a strong bearish candlestick pattern followed by weak volume support, which is expected to keep under pressure unless it witnesses a favourable trigger.
The RSI of stock suggests a weak upper movement, which may extend if it fails to triggers any positive regime. Similarly, the stock has failed to breakout above its 50-days EMA over a period, indicating a muted momentum. The stock is facing upper resistance at Rs 503-level, while the support level will be seen at Rs 465.
We have a SELL recommendation for Sun Pharma which is currently trading at Rs 471.35
Pidilite Industries Ltd: BUY| Target Rs 867 | Stop-loss Rs 832 | Return 3%
Pidilite Industries registered all-time-high at the Rs 855 level during the previous trading session. Despite gaining an early momentum, the stock failed to cohere at that level dragged by selling pressure towards the closing hours.
However, a fresh lag set after muted moment coupled with volume support, it is expected to continue with uptrend momentum in next session.
On the weekly price chart, the stock formed a bullish candlestick pattern with marginal deviation at higher tops.
The stock further managed to breakout above its 20-days EMA indicating a buying regime coupled with momentum indicator favouring the uptrend movement in a shorter timeline. The stock will face a resistance level at Rs 875 and major support level at Rs 830.
We have a BUY recommendation for Pidilite which is currently trading at Rs 843.65
Disclaimer: The author is Founder & CEO, 5nance.com. 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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