Aditya Agarwala
The Nifty50 index bounced back sharply after consolidating in a narrow range. It bounced back from its crucial support placed at the psychological levels of 10,000.
A sustained trade above this resistance i.e. 10,320 can trigger short-covering rallies which could take the index towards levels of 10,450-10,600.
However, a breakdown from the 10,000-support level can drag it lower to retest levels of 9,950-9,800. Furthermore, RSI must move beyond the 40-zone for any significant short-covering rally to materialize.
Here is a list of top three stocks which could give 11-17% return in the next one month:
Aurobindo Pharma: Buy| LTP: Rs 790.30| Target: Rs 925| Stop Loss: Rs 750| Return 17%
On the weekly chart, Aurobindo Pharma Ltd has turned upwards after breaking out of a ‘Pennant’ pattern. Further, a sustained trade above Rs 790 will extend the up move towards levels of Rs 830-925.
On the daily chart, it has broken out from the channel pattern suggesting bullishness. Moreover, the RSI has turned upwards after taking support at the 55-level suggesting higher levels in the coming trading sessions.
The stock may be bought in the range of Rs 784-786 for targets of Rs 860-925, and keep a stop loss below Rs 750.
PI Industries: Buy| LTP: Rs 773.70| Target: Rs 880| Stop Loss: Rs 740| Return 14%
On the weekly chart, PI Industries Ltd is on the verge of a breakout from the channel pattern neckline placed at Rs 790 levels.
A sustained trade beyond the neckline with healthy volumes can extend the rise to levels of 865-900. Further, on the daily chart, the stock has taken support at the 78.6% retracement level and turned upwards suggesting bullishness.
The RSI has turned upwards after taking support at 40-level suggesting extended bullishness in the coming trading sessions. The stock may be bought in the range of Rs 768-773 for targets of Rs 815-880, and keep a stop loss below Rs 740.
Kotak Mahindra Bank: Sell| LTP: Rs 1,118| Target: Rs 990| Stop Loss: Rs 1,160| Return 11%
On the weekly chart, Kotak Mahindra Bank has broken down from the bearish ‘Flag’ pattern indicating weakening uptrend in the stock.
Further, the stock has formed a lower high along with a negative reversal on the RSI suggesting bearishness at the moment. The stock may be sold in the range of Rs 1,118-1,112 for targets of Rs 1,050-990, and keep a stop loss above Rs 1,160.
Disclaimer: The author is Technical Analyst at YES Securities (I) Ltd. 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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