Rupak DeBonanza Portfolio
Nifty, on March 6, started the day above its previous day high and remained in the green throughout the session which suggests the absence of large unwinding of long trades.
On the other hand, a small candle on the daily frame suggests lower follow-up buying at higher levels. The overall bias is positive, however, a sign of cautiousness is seen in the market as the headline index approaches the previous resistance zone.
In addition, the index has seen to have found resistance around 90 percent retracement (currently pegged at 11,058) of the previous fall from 11,118 to 10,585.
On the options front, maximum open interest (March 28) position is visible in 11,500 CE (20.86 lakh shares) and 11,000 PE (32.64 lakh shares); followed by 11,000 CE (18.74 lakh shares) and 10,500 PE (23.41 lakh shares).
Going forward, Nifty may find resistance at the previous swing high which is currently pegged at 11,120, and sustained trades above 11,120 may induce a rally towards 11,200.
Again, a decisive breakout above 11,200 may induce a strong rally in the market. On the other hand, a breakdown below 10,800 may trigger short-term bearishness in the market.
Here is a list of top three stock which could give 7-9% return in the next 1 month:
Kaveri Seed Company: Buy| CMP: Rs.426.55 | Target: Rs 465| Stop Loss: Rs 412| Return 9%
The stock has given a breakout above its consolidation on the daily chart which signifies rising bullishness in the stock.
On the weekly chart, a bullish pattern is visible which suggests a recovery in the price in the coming days. The daily price momentum indicator RSI (14) is in bullish crossover and rising.
Traders can accumulate the stock in the range of 422-429 for the target of 465 with a stop loss below 412.
Tata Elxsi: Buy| CMP: Rs 950.10 | Target: Rs 1026| Stop Loss: Rs.912 | Return 8%
The stock has moved above a downwards consolidation pattern on the daily chart. In addition, an inverted head and shoulder pattern breakout is visible on the daily chart.
Daily RSI (14) is in bullish divergence which suggests the momentum is likely to remain positive over the short term.
Traders can accumulate the stock in the range of 940-952 for the target of 1026 with a stop loss below 912.
Sun Pharma: Buy| CMP: Rs.460.55 | Target: Rs 495| Stop Loss Rs 444| Return 7.50%
On the daily chart, the stock has given a rectangle pattern breakout which suggests increased bullishness in the counter.
The stock is seen to have moved above previous swing high. In addition, daily RSI has given an inverted head and shoulder breakout.
Traders can accumulate the stock in the range of 455-465 for the target of 495 with a stop loss below 444.
(The author is a Technical Research Analyst at Bonanza Portfolio Ltd.)
Disclaimer: 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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