Aditya Agarwal
The Nifty50 continued its northward journey and registered a fresh all-time high of 11,760.20 during the Tuesday’s trading session.
Subsequently, the rise in crude oil prices along with the depreciation of Indian Rupee against US Dollar put pressure on the index which led to decent profit booking.
On daily charts, Nifty is forming a bearish divergence, therefore, the possibility of further profit booking can’t be ruled out even from current levels.
However, the daily higher top higher bottom formation is intact which indicate that the current trend is up.
At this juncture, Monday’s low of 11,595 will act as an immediate support and a break below 11595 will drag Nifty further lower towards 10530 – 11470 levels respectively.
On the higher side, the recent swing high of 11760 will act as an immediate hurdle above which index likely to rally towards 11835.
For September series, we expect overall markets to consolidate in the broad range of 11500-11850 where every pullback on the higher side can be utilized to book profit in trading long positions.
Call writing at 11800 and 12000 level strike option will prove as stiff resistance zone for nifty whereas put writing at 11600-11500 will provide strong support in the short term.
Here is a list of top three stocks which could give 9-26% return in next 1 month:
Sun Pharma: LTP: Rs 639.50| Buy around Rs 635 - 630| Target: Rs 690-725| Stop Loss: Rs 600| Return 13%
After confirming its breakout from the double bottom pattern on the weekly chart, Sun Pharma rallied to Rs 645.50.
Subsequently, it saw mild pullback but stock found support near Rs 617 and rebound sharply in Thursday’s trade.
The daily RSI (14) found support above 60 levels whereas the weekly RSI (14) had already signaled a range shift.
Considering the above evidence, we advocate traders to accumulate this stock in a range of Rs 635 to Rs 630 with a price target of Rs 690 and in case of further optimism, stock can even rally till Rs 725. A stop loss should be placed below Rs 600.
PTC India Financial Services (PFS): LTP: Rs 19| Buy at Rs 18.80-19.00| Target: Rs 24| Stop Loss: Rs 17| Return 26%
PFS has been in a strong down trend since the past several months and hit a fresh 52-weeks low of around Rs 14.50. Subsequently, it saw decent recovery and rallied towards Rs 19.20.
Once again, the stock resumed its downward trend but didn’t go below the swing low of Rs 14.50 and made a higher bottom. Looking at the overall structure, we are seeing a formation of inverse head & shoulder pattern.
During Thursday’s session, stock penetrated the neckline of said pattern. The daily RSI (14) signaled a bullish range shift. Hence, we recommend traders to buy this stock at the current level of Rs 18.80 with a price target of Rs 24. Stop loss should be placed below Rs 17.
Tata Elxsi Ltd: LTP: Rs 1407| Sell below Rs 1388| Target: Rs 1320 - 1275| Stop Loss: Rs 1440| Return 9%
The stock has been in a protracted uptrend since several months and hit a fresh all-time high of Rs 1491. Subsequently, stock corrected towards Rs 1375 and rebound sharply, however, stock failed to cross its previous swing high and made a lower bottom on a daily chart.
Looking at the overall structure, we are seeing a formation of head & shoulder pattern on daily chart. The said pattern will be activated if stock breaches the Rs 1388 levels.
In that case, we may see a sharp slide towards Rs 1320 and stock may even correct till Rs 1275. Stop loss should be placed at Rs 1440.
Disclaimer: The author Head of Technical Research, Way2Wealth Brokers Pvt. 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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