Dyaneshwar Padwal of KIFS Trade Capital sees the Bank Nifty heading towards 28,800 levels if 28,400 is taken out decisively
KIFS Trade Capital
The structural strength in the benchmark index is still intact. The vertical wave has really surprised the market, which pushed the index into uncharted territory.
The first line of defence where the intermediate trend line is placed is near 11,400. Although the primary trend is up, the momentum is clearly towards the northern trajectory.
The uptick continues to remain on the positive side in the market. On the daily chart, the indices are oscillating in an escalating channel, where the overhead resistance is placed near 11,800 . We advise traders to book profit at higher levels on the Nifty.
The Bank Nifty has the tendency to show a similar view like the benchmark index, but financials have their own personality. Of late, the index is oscillating in a tight range of 27,700 on the downside and 28,400 on the upper end. It looks promising as some steam is left to the rise. If he bulls manage to take out 28,400 decisively, it could head towards 28,800 levels.
Here is a list of two stocks that could return 8-10% return in the next 1 month:
DLF Ltd: Buy| LTP: Rs 212| Target: Rs 230| Stop Loss: Rs 200| Return 8.4%
Realty sector has underperformed the benchmark index by marking negative alpha since a couple of months but the recent move of the underline stock towards uncharted territory gives trigger to the realty sector.
In that space, the recent chart structure of DLF has managed to come out of the falling channel and on the lower time frame mainly on hourly, it is moving in a clear uptrend.
The recent throwback should capitalized as a buying opportunity. One can buy the DLF at a current market price with a stop loss placed below Rs 200 for the initial leg of up move towards Rs 230.
Persistent Systems Ltd: Buy| LTP: Rs 862| Target: Rs 930| Stop Loss: Rs 840| Return 10%
Midcap IT has shown strength in 2018 by outperforming the key benchmark index. In that space Persistent system has not participated in the spectacular rally as it is unfolded in a corrective pattern.
Now we are observing a renewed strength in the stock. One can buy this stock at the CMP by keeping a stop loss below Rs 840 for an initial leg of up move towards 930.Disclaimer: The author is AVP Technical Analyst at KIFS Trade Capital. 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 decisionsThe Great Diwali Discount!
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