By SMC Global
Since the beginning of the October series, we have been continuously seeing buying interest by FIIs in the derivative segment which clearly indicates a long buildup.
Additionally, the rollover data to October series also indicates long rollover. As far as Nifty futures is concerned, it is trading well above 10,000 levels which have the highest open concentration in call strike, which signals further short covering.
The range of 9,900-10,100 levels will remain crucial for this week as indicated by option open interest concentration.
Overall data has turned positive and we can witness more up move in the index towards 10,200 moving forward.
Here is a list of top five stocks which can give up to 18% return in the short term:
Vinati Organics Ltd: BUY| Target Rs1110| Stop Loss Rs900| Return 13%
The stock has been maintaining its uptrend but in recent past due to profit booking, prices have fallen towards Rs900 levels after testing highs of Rs1,125.
The stock has taken support at its 100-days exponential moving average (DMA) and recovered sharply thereon. In Tuesday’s session, once again we saw price volume expansion.
Moreover, the stock is once again holding above its short and long-term moving averages with multiple supports downside. Traders can accumulate the stock in a range of Rs975-985 for the target of Rs1110 and a stop loss below Rs900.
Syngene International Ltd: BUY| Target Rs550| Stop Loss Rs450| Return 13%
The stock has been consolidating in range of Rs440-500 since May 2017 and also maintaining above the 100-days exponential moving average (DEMA) on the weekly charts.
In the recent sessions, the stock has formed an ascending triangle formation on the daily charts and is on the verge of a breakout. Traders can accumulate the stock in a range of Rs485-490 for the upside target of Rs550 and a stop loss below Rs450.
Coromandel International Ltd: BUY| Target Rs540| Stop Loss Rs430| Return 14%
The stock has given a consolidation breakout above Rs460 levels after trading in the thin range of Rs400-460 for more than fifteen weeks.
Moreover, positive divergence in the secondary indicators such as relative strength index (RSI) and Stochastic along with consistent volumes are also supporting the next up move in prices.
Traders can accumulate the stock in a range of Rs470-475 for the target of Rs540 with a stop loss below Rs430.
Mastek Ltd: BUY| Target Rs380| Stop Loss Rs285| Return 18%
The stock has been consolidating in the range of Rs250-350 for more than twenty-one weeks and is now on the verge of a fresh breakout.
Moreover, the stock has also formed a diamond formation on the weekly charts. It rose above the falling trend line pattern. Traders can accumulate the stock in a range of Rs320-325 for the target of Rs380 and a stop loss below Rs285.
Suven Life Sciences: BUY| Target Rs220| Stop Loss Rs165| Return 18%
The stock has risen sharply after taking support at its 200-days exponential moving average (DEMA) and forming double bottom formation on weekly charts around Rs160 levels.
Moreover, in Tuesday’s session, the price volume breakout has also been witnessed on daily charts above 190 levels. The sudden rise in volume along with rising price suggests more upside for the stock in coming sessions.
Traders can accumulate the stock in a range of Rs185-192 for the target of Rs220 and a stop loss below Rs165.
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