Shitij Gandhi
Even after giving a break above the psychological level of 11,000 last week, Nifty could not manage to hold onto its gains and once again fell sharply towards 10,800-mark on the back of continuous selling pressure in absence of any major domestic or global triggers.
The bears took charge once again and hammered down stocks badly. From the derivatives front, call writing was observed at 10,900 and 11,000 strikes along with put unwinding at immediate strikes from 11,000 to 10,600 strikes.
This clearly signifies that any upside in the index may remain capped. On the technical front, 10,750-10,700 zone will provide support to market moving forward and the trend is likely to remain choppy with some volatility on cards.
Here is a list of three stocks that could give 5-11% return in next 1 month:
NMDC: Buy| LTP: Rs 93.40| Target: Rs 102| Stop Loss: Rs 90| Upside 9%
From the last two months, the stock has been consolidating in a broader range of Rs 88-98 along with persistent buying at lower levels. On the daily time frame, the stock has formed a double bottom pattern and has given a sharp pullback along with positive divergence on secondary indicators.
Additionally, the stock has also given a breakout above the falling Wedge pattern along with marginally higher volumes. Traders can accumulate the stock in a range of Rs 94-96 for the upside target of Rs 102 levels and a stop loss below Rs 90.
Jubilant Foodworks: Buy| LTP: Rs 1276| Target: Rs 1415| Stop Loss: Rs 1220| Upside 11%
The stock witnessed a sharp rally last week from Rs 1,200 levels and tested Rs 1,400 levels in a short span of time. However, since then, due to profit booking at higher levels, stock once again retraced back towards 1,280 levels and is consolidating in a range of 1,280-1,350.
At the current juncture, the stock has formed a rectangle pattern on the technical charts which is generally traded as a continuation pattern.
In the coming sessions, we expect the stock may once again take a rally towards north supported by hefty volumes and positive divergence on the secondary oscillators.
Traders can accumulate the stock in the range of 1295-1298 for the upside target of 1415 levels and a stop loss below 1220.
HDFC Bank: Buy| LTP: Rs 2140| Target: Rs 2260| Stop Loss: Rs 2080| Upside 5%
After taking support at its 200-days exponential moving average and forming a ‘Double Bottom’ pattern around Rs 2,030 levels on a daily interval, the stock took a V-shape recovery to reclaim Rs 2,100 levels.
On the broader charts as well, the stock has been consolidating in a range of Rs 2,050-2,150 levels from last two months. We believe the breakout after the prolonged consolidation can trigger fresh buying into the stock which could move price higher towards new highs.
Traders can buy the stock above a breakout level of 2150 for the upside target of 2260 levels and a stop loss below 2080.
(The author is a Senior Research Analyst, SMC Global Securities)
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