Kshitij Anand Moneycontrol News
The Nifty50 which opened with a slight gap on the upside on Tuesday is likely to face stiff resistance around 9,850-9,880 levels. A break above these levels could push the index towards 9950-10,000 levels.
The Nifty50 made a bearish engulfing pattern in the previous trading session as market participants preferred to book profits amid negative global cues which suggest that bears are here to stay.
A bearish engulfing pattern is formed when a bearish candle is engulfing (bigger than/covering) previous trading range and that indicates the overall sentiment is negative and bears have control in near-term since the entire range is engulfed.
“The Nifty now has strong support placed at 9710 - 9680 as it is seen as crucial support which has provided support previously as well. Stiff resistance is seen at 9800 – 9850. The broader range comes at 9,700 – 10,000,” Mustafa Nadeem, CEO, Epic Research told Moneycontrol.
“In case a new low is established below 9,700 we may see more bearishness in the market with a new trajectory of trading being formed with resistance coming at 9850 levels. Then the overall medium-term trend will be negative with sell on rise being strategy,” he said.
Here is a list of top five stocks to buy which can give investors over 13-24 percent return in the short-term:
Brokerage: SMC Global
Aptech: BUY| Target Rs260| Stop Loss Rs205| Time 1-2 months| Return 13 percent
The stock closed at Rs229.30 on 18th August 2017. It made a 52-week low at Rs105.40 on the 19th August 2016 and a 52-week high of Rs250.75 on 14th February 2017. The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently placed at Rs193.01
The stock was trading in lower highs and higher lows sort of “Continuation Triangle”, which is bullish in nature.
Moreover, the stock has given the breakout from the pattern by registered gains over 11 percent in last week and also closed above the breakout levels so, buying may continue for coming days.
Therefore, one can buy in the range of Rs220-224 levels for the upside target of Rs250-260 levels with a stop-loss below Rs205.
Speciality Restaurants: BUY| Target Rs135| Stop Loss Rs105| Time 1-2 months| Return 14 percent
The stock closed at Rs117.95 on 18th August 2017. It made a 52-week low at Rs59.50 on 15th March 2017 and a 52-week high of Rs128.45 on 09th August 2017. The 200 days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs94.31.
After making low of Rs72, the stock has rebounded sharply from lower levels and traded above Rs118, which was its 200DEMA. Then after, it is consolidating in the range of Rs108-122 levels and forming “Bull Flag” pattern on weekly charts, which is considered to be bullish.
Therefore, one can buy in the range of 114-116 levels for the upside target of 132-135 levels with a stop loss below 105.
Analyst: Aditya Agarwal, Head Technical Research, Way2Wealth Brokers Pvt. Ltd
ITC: Buy around 282 to 277| Target Rs320| Stop loss 265 (Timeframe 15 to 20 trading sessions)| Return 14 percent
ITC has been in an uptrend since late December 2016 and registered an all-time high of around 355 during early July 2017. Subsequently, we saw almost a vertical decline in stock which was followed by gradual correction towards 270.
The level 270 coincided with the multiple support zone first, the 61.8 percent retracement of its entire move from the bottom of 219 to 355 comes near 270, secondly, the previous multiple daily swing lows are placed near 270 and also 200-SMA is placed near 270.
Looking at the weekly chart, the RSI (14) momentum indicator has precisely tested the Rising Trend line drawn from the bottom of June 12, 2015, and started rallying northward.
Considering the above evidence, we expect this stock resume its uptrend hence we advocate traders to buy this stock in a range of 282 to 277 with a price target of 320 and stop loss placed below 265.
Concor: Buy around 1220|Target Rs1420/1520| Stop Loss Rs1110| Timeframe 1-2 months| Return 24 percent
Looking at the weekly chart, the stock has confirmed its breakout from a Descending Triangle pattern in early April 2017. This triggered an acceleration of bullish momentum. In that optimism, the stock rallied and hit a fresh 52-week high of 1250.
Subsequently, a bit of profit booking was seen which we term as a price wise as well as the time-wise correction. After several weeks of consolidation, stock resumed its uptrend during last week.
Weekly 9-45 EMA is still positive and is indicating that the current trend is still bullish. The daily RSI (14) entered inside the 60 level which is a bullish indication.
Hence, we are recommending traders to buy this stock in a range of 1200-1220 with a price target of 1420/1520 and Stop loss placed below 1110.
Piramal Enterprises: Sell around Rs2650| Target Rs2440| Stop Loss Rs2730| Timeframe 7 to 10 trading session| Return 6 percent
Last week, the stock broke the rising trend line and corrected towards the daily 89-EMA placed near 2665. Looking at the daily chart, the 9 periods EMA has signaled negative crossover and 45-EMA indicate the shift in a trend.
Also, the daily RSI (14) breached the 40 levels which is a bearish signal. Hence, we recommend traders to go short around 2650 with a price target of 2440. Stop loss should be placed above 2730.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their 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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