By Dinesh Rohira
The Nifty50 index witnessed a major free fall towards the weekend session, thereby erasing the earlier peak on the backdrop of selling pressure at a higher level. The index lost about 2 percent in just two trading session.
Despite opening with gap-up during the Friday’s opening session, it failed to sustain at that level as bears decisively managed to drag the index below its crucial support level placed at 10,200 zone and slipped below 50-days EMA indicating a negative trajectory in the upcoming session.
The breach from its 50-days EMA formed a long bearish candlestick pattern on its daily price chart after forming a bearish belt hold pattern in the previous session, indicating a further consolidation in short-term.
The Bollinger bandwidth suggests weak support with the end of squeeze coupled with a breakout below the lower band, indicating a further decline in price. According to Fibonacci retracement, a major support level is seen at 10089 and immediate resistance level at 10183.
Here is a list of top 4 stocks which could give up to 11% return in the short term:
Coffee Day Enterprises: BUY| Target Rs295 | Stop-loss Rs250 | Return 11%
Coffee Day witnessed a healthy consolidation at a lower level of Rs206-190 range prior to its uptrend momentum in the current period.
The previous lower level at 206 remains a crucial support for the scrip where it witnessed a bullish reversal trend to lift the scrip at higher peak and touched an intraday high of a Rs283 level.
After closing the session with 8 percent gain, the stock formed a strong bullish candlestick pattern, indicating a continued momentum at the upper level.
The momentum indicator further suggests a strong support for bullish sentiment at current price level coupled with its crucial breakout from 20-days, 50-days, and 200-days EMA.
The immediate support level for scrip is currently placed at 237 followed by 216 and resistance level is seen at Rs283. We have a BUY recommendation for Coffee Day which is currently trading at Rs266.50
Jubilant Industries Ltd: BUY| Target Rs. 249 | Stop-loss Rs220 |Return 8%
Jubilant Industries traded on uptrend trajectory for most of the session despite witnessing a marginal consolidation during past month.
Despite trading at flat note during the weekday session, it witnessed a major breakout from its 50-days EMA towards the weekend session and registered a fresh 52-week high at 249 level. However, it failed to sustain and closed marginally below its high at 231 level.
On the weekly price chart, the stock formed a strong bullish candlestick pattern after sluggish movement and indicated a further uptrend momentum from the current level.
Further, the secondary momentum indicator suggests a strong support for uptrend with an increase in RSI level from past week coupled with a bullish crossover of MACD taking place at current trend. The current breakout from 50-days EMA, signals positive cues in next session.
Currently, it is facing an upper resistance at 261- level and support level at 216. We have a BUY recommendation for Jubilant Industries which is currently trading at Rs. 231.05
ADF Foods: BUY| Target Rs343 | Stop-loss Rs315 | Return 5%
ADF Food witnessed a strong bullish reversal trend after consolidating at the higher support level and continued to trade on uptrend trajectory.
Despite trading on muted movement during early session, the price-trend bounced on bullish front coupled with volume support towards the weekend and gained about 14% on weekly basis.
On the daily price chart, the stock formed a bullish trend as it ended the weekend session on positive cues. Following a momentum indicator, which supports bullish uptrend with RSI at 71 coupled with MACD at 17.67 showing crossover from its signal-line.
Further, the stock managed to close above its 20&50-days EMA and strengthening the positive sentiment in forward-looking session.
The stock is currently facing upper-resistance at 347-level and immediate support at 295-level. We have a BUY recommendation for ADF Food which is currently trading at Rs. 327.40
Tata Motors: SELL| Target Rs. 384 | Stop-loss Rs415 | Return 4%
Tata Motors continued to face headwinds in its daily price movement after clocking its 52-week high and witnessed a continued free fall to trade at a lower level.
The stock remained under pressure and traded at negative trajectory on the backdrop of lower volume support and lost about 6 percent on weekly basis.
On the weekly price chart, it formed a strong bearish hold pattern which is expected to keep the stock under pressure without any major breakout in short-term.
Further, the price is currently below its all level coupled with bearish crossover on its momentum indicator, thus indicating a continued negative outlook going forward.
The stock is facing its resistance at 422-level while the support level at 375 will remain crucial for scrip. We have a SELL recommendation for Tata Motors which is currently trading at Rs. 398.90
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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