Podcast | Stock picks of the day: Volatility is likely to grip market within the range of 11,500-11,200

From the derivative front, the tug of war was seen among the bulls and bears during the week. But, bears managed to take control over the markets as call writers’ added hefty open interest in 11,500 and 11,600 strikes.

From the technical front, the Nifty is still holding above its long-term moving averages and as far as prices are holding above 11,200 mark, we expect that the volatility is likely to grip the market within the broader range of 11,500-11,200.

However, any decisive move beyond this range will further decide the next momentum into the index.

Here is a list of top three stocks which could give 10-12 percent returns in the next three to four weeks:

Coromandel International: Buy | Target: Rs 452 | Stop Loss: Rs 385 | Upside 10 percent

After testing lows of Rs 337 in the month of August, the stock made a good recovery and has once again managed to reclaim Rs 400 levels. It closed above its long-term moving averages on the daily charts.

On the daily interval, the stock has also formed an inverted head and shoulder pattern along with a breakout above the neckline of the pattern formation.

The breakout has occurred with marginally higher volumes which suggest for more upside into the prices. So, traders can accumulate the stock in the range of Rs 410-415 for the upside target of Rs 452 levels, and a stop loss below Rs 385.

Kansai Nerolac Paints: Buy| Target: Rs 551 | Stop Loss: Rs 470 | Upside 10 percent

From the last six months, the stock was consolidating in a broader range of Rs 390-490. But, in the last week, we have observed a fresh breakout into the prices after a prolonged consolidation.

The positive divergences on the secondary oscillators also suggest for the next up move into the prices in the coming sessions.

Traders can accumulate the stock in the range of Rs 500-510 for the upside target of Rs 551 levels, with stop loss below Rs 470.

Fine Organic Industries: Buy | Target: Rs 1,910 | Stop Loss: Rs 1,580 | Upside 12 percent

The stock has consistently maintained its bull run and is trading in a rising channel pattern on the broader charts with the formation of higher highs and higher bottom patterns.

In the recent past, we observed a fresh breakout above the key resistance levels of Rs 1,600 with marginally higher volumes. The structure on the technical setup suggests more upside into the prices after a recent breakout.

Traders can accumulate the stock on dips and in the range of Rs 1,700-1,720 levels for the upside target of Rs 1,910 levels, and a stop loss below Rs 1,580.

The author is a Senior Research Analyst, SMC Global Securities

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