Kshitij Anand Moneycontrol News
The Nifty50 which gave some early indication of reversal recouped much of losses and closed 0.51 percent higher for the week ended 4 August. With no major triggers lined up for the month of August, it will be difficult for the market to gain similar momentum which it saw last month.
Expectation of some bit of consolidation cannot be ruled out in the coming week and investors will be better off taking bets on individual stocks.
“The much awaited trigger of the policy is gone and index has already hit record highs with a massive velocity. Going ahead, if market has to extend this rally, it would look for some other cues may be on domestic or global front,” Sameet Chavan, Chief Analyst- Technical and Derivatives, Angel Broking told Moneycontrol.
“But, we continue to mention that the index now needs some kind of a breather to maintain the sturdy structure of its multi-year bull run. For the forthcoming week, we expect this consolidation to continue in a trading range of 200 – 300 points,” he said.
Commenting on the level, Chavan is of the view that 10,055 – 10,150 would be seen as immediate resistances; whereas, 9980 – 9944 would be the levels to watch out for on the downside.
The Nifty50 went through a corrective phase in the first week of August as traders continued to book profit at higher level.
After forming a bearish reversal trend on the daily chart for two trading session, Nifty saw a marginal uptrend on Friday to close above its psychological mark of 10,000 indicating a positive trajectory going forward.
On weekly chart, Nifty made a slightest bullish reversal trend. Further, the relative strength index (RSI) at 64 indicates a favourable buy price coupled with uptrend momentum depicted by MACD at 108 trading above its Signal Line.
“Regardless of trading on negative bias during past week, the Fridays uptrend suggest a positive trajectory if it manages to close above psychological level on daily basis before witnessing a next rally,” Dinesh Rohira, Founder & CEO, 5nance.com told Moneycontrol.
Here is a list of top 10 money making ideas which can give up to 14% upside in the next 5-20 trading sessions:
Analyst: Sameet Chavan, Chief Analyst- Technical and Derivatives, Angel Broking
Radico Khaitan: BUY| Target Rs159| Stop Loss Rs139| Return 9%| Time 6-8 sessions
Recently, this stock underwent a strong consolidation phase during which every attempt towards Rs138 – 140 was getting sold into. However, on Monday, we saw strong follow up buying interest post previous Friday’s sturdy closing; leading to a confirmation of ‘Inverse Head and Shoulder’ pattern on daily chart.
This price activity was accompanied by higher than average daily volumes, which certainly is an encouraging sign. In addition, some of the key moving averages along with the technical indicators are still maintaining their upward trajectory.
Hence, we advise traders to buy this stock at current levels and on declines at Rs.143 for a target of Rs.159 over the next 6- 8 sessions. The stop loss now should be fixed at Rs.139.
Havells India: BUY| Target Rs520| Stop Loss Rs465| Return 5%| Time 14-21 sessions
Since last couple of months, the stock has been consolidating in a range and has formed a ‘Symmetrical Triangle’ pattern on the daily chart. On Thursday, the stock prices finally managed to give a breakout from the pattern with decent volumes.
The ‘RSI’ oscillator too, after a consolidation phase, has resumed the positive momentum. The price breakout, supported by the volumes and positive momentum oscillator is indicating that the stock has resumed its larger degree uptrend.
Hence, we are expecting the stock to move higher in near term. Thus, we recommend buying this stock at current levels and on a correction up to Rs.486 for a target of Rs.520 over the next 14 – 21 sessions. The stop loss should be fixed at Rs.465.
Tata Motors DVR: SELL| Target Rs237| Stop Loss 267.55| Return 7%| Time 5-10 sessions
This stock has been a clear underperformer since September 2016 highs. During this period, our benchmark index rallied more than 20 percent and is trading around all-time highs; whereas, this stock kept descending towards its 52-week low.
This is a clear sign of weakness. On Thursday, we saw breakdown from a major near term support level of 258 on a closing basis. In addition, the ‘RSI-Smoothened’ has slipped below its recent lows, which we believe would provide an impetus for further correction.
Thus, we recommend selling this stock at current levels and on a bounce up to Rs.258 for a target of Rs.237 over the next 5 – 10 sessions. The stop loss should be fixed at Rs.267.55.
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
HPCL: BUY| Target Price Rs475| Stop-loss Rs425| Return 10%
Regardless of trading on sideways direction, HPCL has traded on positive bias over period of time. The recent volume breakout witnessed on backdrop of buying regime formed a strong bullish uptrend in its daily chart which reflected with uptrend movement in both price and volume.
On technical front, the stock is currently trading at favourable price-range with RSI at 66 supporting the buying sentiment. As price started to trade above its 12-EMA coupled with MACD just crossing over its Signal Line indicating an uptrend momentum to continue.
The stock will witness support level at 388 while the upper circuit will be seen at 480 level.
We have a BUY recommendation for HPCL which is currently trading at Rs432.6
Balrampur Chini: BUY| Target Rs191 | Stop-loss Rs155 | Return 10%
Balrampur Chini witnessed an uptrend regime after making a lower bottom at Rs147 during the past trading session. The stock also reported strong volume support which favoured the price moment as it made a 52-week high at 176 to trade on bullish trajectory.
The stock continued to form bullish chart pattern despite marginal dip towards the weekend session but remained on positive bias.
The technical outlook suggests a support for uptrend movement as current price makes a good buy coupled with weekly chart forming a bullish belt hold pattern.
Further the stock is currently trading above 20-EMA which is suggest an uptrend regime going forward.
The stock is facing a resistance level at Rs196 and support level is seen at Rs159. We have a BUY recommendation for Balrampur Chini which is currently trading at Rs173.7
Indian Oil Corp Ltd: BUY| Target Rs438 | Stop-loss Rs395 | Return 5%
The stock rebounded with pace after consolidating at lower level and continued to close at higher level on daily basis on positive bias. Further the movement was strongly supported by volume breakout witnessed during this week’s trading session.
On weekly price chart, the stock formed a strong bullish candlestick pattern as it managed to decisively close above its previous closing and opening price, indicating a continued uptrend movement.
On technical basis, the stock continued to trade with favourable buying price regime still prevailing in market. Further the price of stock is currently trading above 50-days SMA and EMA indicating a stock to maintain uptrend momentum going forward.
The stock is currently facing a resistance level at Rs443, while the support level will be seen at Rs398. We have a BUY recommendation for Indian Oil Corp Ltd. which is currently trading at Rs418.95
UltraTech Cement: BUY| Target Rs4185 | Stop-loss Rs3905 | Return 3%
UltraTech Cement continued to face sideways movement for several trading sessions losing as much as 400 points so far after making a peak.
However, the stock formed reversal trend inclined towards bullish trajectory during this week’s trading. Despite closing on the negative bias on Friday, the stock formed a bullish shooting star pattern in its daily price chart and gained 2 per cent on weekly basis.
Technically UltraTech Cement is currently at favourable buying price regime coupled with volume support. The stock correspondingly witnessed a bullish crossover based on momentum indicator.
Further the moving average analysis suggests a strong support for upward movement as price still trading above 200-days EMA.
The stock will witness major support level at 3913 while it will face resistance level at 4207. We have a BUY recommendation for UltraTech Cement which is currently trading at Rs4,081.35
Siemens Ltd: SELL | Target Rs1320 | Stop-loss Rs 1379 | Return 3%
Siemens Ltd continued with downward spiral throughout the trading session losing about 6 per cent on weekly basis. The stock made a lower bottom on closing basis and continued to trade near its 52-week-low mark.
On daily price chart, the stock continued to form bearish trend indicating a further downtrend in upcoming session coupled with lower volume support.
Further on technical front, it is currently trading on negative price trajectory followed by bearish crossover just started as indicated by MACD, thus indicating a negative outlook.
Further the price is currently trading below its 20-days EMA and it is facing its resistance from 20-days EMA at 1376. The stock is expected to remain under pressure as it retrenches to hold above its support level at 1334
We have a SELL recommendation for Siemens Ltd. which is currently trading at Rs. 1364.5
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Escorts: BUY| Target Rs767| Stop Loss Rs630| Return 14%
The rally from the recent low of Rs635 on high volumes on the back of decent result and double bottom kind of technical formation is signalling the end of the corrective swing which is in place from the highs of Rs767.
Hence, traders should make use of the current dips to create long positions for a target of Rs767 and a stop loss of Rs630.
Divis Laboratories: BUY| Target Rs760| Stop Loss Rs647| Return 11%
Surprisingly, this counter remained indifferent to the carnage witnessed in the largecap pharma space suggesting that it has decoupled itself with the negativity surrounding in the sector.
Besides, it is not only moving flat but it is closing around Rs670 levels for the last 5 trading sessions with extremely narrow range move.
Hence there is a higher probability of it resuming its uptrend and target Rs760 kind of levels. Traders are advised to maintain a stop loss below Rs647.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their 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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