SMC Global
The Nifty is moving up and has been making new highs on regular basis with a decent addition in open interest (OI) which indicates the strength in the current trend.
The Option writers were active last week as we have seen Put writing in 9900, 9800, 9700 strikes and unwinding in calls. The foreign institutional investors (FII’s) options data also indicates fresh buying in index calls (9900, 10000 strikes).
Moreover, from derivative data, it is quite possible that Nifty may expire above 10,000 levels in the current series. As in the recent past, we have seen aggressive put writing in near strikes with 9900 strike holds the maximum put open interest indicating strong support zone.
On Tuesday, Call writers were unwinding call short position which once again indicates the possibility of upside before expiry. On the technical front, 9920-9930 spot levels are strong support zone and the current trend is likely to continue towards 10,050-10,100.
Top five stocks which can give up to 14% return in the short term:
Bharat Wire Ropes: BUY| Target Rs120| Stop Loss Rs97| Upside 14%
The stock has been consolidating in the broader range of Rs110-90 from the last 4-5 months. However, in the recent sessions buying interest has been once again seen in the stock with marginally higher volumes.
Alongside, it is trading well above its short and long term moving averages. Moreover, on the daily charts, it has made a bullish flag formation and is on verge of upside breakout.
Traders can accumulate the stock in a range of Rs108-105 for the target of Rs120 with a stop loss below Rs97.
Raymond: BUY| Target Rs890| Stop Loss Rs750| Upside 11%
After giving sharp rise from Rs700 to Rs820 levels, the stock went into consolidation phase and traded in a narrow range of Rs775-820.
On daily charts, it has formed bullish flag formation and is on verge of giving a breakout. In addition, the positive divergence in RSI indicator supports the prices for next up move going forward.
Traders can accumulate the stock in a range of Rs810-800 for the target of Rs890 with a stop loss below Rs750.
Strides Shasun: BUY| Target Rs1,215| Stop Loss Rs1,000| Upside 13%
Smart recovery has been seen in the stock from lower levels after testing 900 levels on the downside. Currently, the scrip is trading well above its 200-days EMA and has given symmetrical triangle breakout above Rs1050 levels.
The consistent volumes along with the rise in price suggest that the recovery should remain sustainable going forward. So, traders can accumulate the stock in a range of 1085-1075 for the target of 1215 with a stop loss below 1000.
Federal Bank: BUY| Target Rs130| Stop Loss Rs110| Upside 11%
The stock has been consolidating in the range of Rs110-120 from last one month. In past few sessions once again rise in price has been seen along with hefty volumes.
On the weekly charts, it has formed ascending triangle formation in an uptrend which is considered as a bullish signal for the scrip going forward.
Traders can accumulate the stock in a range of Rs120-117 for the target of 130 with a stop loss below 110.
Pidilite Industries: BUY| Target Rs905| Stop Loss Rs780| Upside 10%
After taking support at its 200-days EMA on the weekly charts, the stock has been consistently maintaining its uptrend and making higher highs and higher lows.
In the recent week, once again, the stock has given a sharp upside and is on the verge of giving breakout above its five-week consolidation range.
Moreover, on the daily charts, it has formed a diamond pattern and giving upside breakout. Traders can accumulate the stock in a range of Rs830-820 for the target of Rs905 with a stop loss below Rs780.
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