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Top 10 moneymaking ideas which could give 4-11% return in 1 month based on technicals

On the lower side, 11484 followed by 11436 would now be seen as immediate and crucial supports. At this juncture, a strategy would be to focus on individual pockets that are providing better trading opportunities, says Sameet Chavan of Angel Broking.

September 10, 2018 / 01:04 PM IST
Mumbai: New logo of National Stock Exchange (NSE) displayed outside the headquarter, in Mumbai on Thursday, August 16, 2018. (PTI Photo/Shashank Parade)(PTI8_16_2018_000101B)

Mumbai: New logo of National Stock Exchange (NSE) displayed outside the headquarter, in Mumbai on Thursday, August 16, 2018. (PTI Photo/Shashank Parade)(PTI8_16_2018_000101B)

 
 
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Indian markets consolidated in a range of 300 points last week. It hit a low of 11,393 on September 5, but managed to recoup losses and closed 0.78 percent lower at 11,589.10 for the week ended September 7.

Rising crude oil prices, fall in rupee, escalating concerns over trade wars as well as rising India bond yields weighed on sentiment. The rupee touched a fresh record low of Rs 72.​10​/USD in the week gone by.

It looked like most traders made peace with the rupee at 71, but the moment this level was crossed and the currency touched Rs 72/USD, it caused some panic in the traders’ fraternity. Weakness in the rupee and global cues will lead to some bit of volatility in the coming week as well.

“For coming weeks, we expect markets to be volatile and remain sideways with Sensex moving in range of 37,700-38,950 and with respect to Nifty, the range could be 11,300-11,750,” Prateek Jain, Director, Hem Securities told Moneycontrol.

“In terms of currency, we expect the rupee to weaken further with USD/INR touching the level of Rs 72.75/USD in the coming days,” he said.

Close

Technically speaking, Nifty made a ‘Bullish Hammer’ pattern in the midst of the last week and it has shown some significance because we saw a similar pattern getting formed for two more sessions.

But, the first half of the forthcoming week would be quite crucial in order to draw the immediate route map for the market. The index will have to convincingly traverse the strong resistance zone of 11640 – 11700, if it has to gain some real strength in the near term, suggest experts.

“The index has to cross and hold above 11640 – 11700 levels if it has to gain some real strength in the near term. It looks possible considering the broader market participation; but as a trader, one needs to be closely tracking how index behaves around those important levels,” Sameet Chavan, Chief Analyst, Technicals, and Derivatives at Angel Broking told Moneycontrol.

“On the lower side, 11484 followed by 11436 would now be seen as immediate and crucial supports. At this juncture, a strategy would be to focus on individual pockets that are providing better trading opportunities,” he said.

Here is a list of top 10 money making ideas from different experts which could give 4-11% return in the next one month:

Analyst: Sameet Chavan, Chief Analyst, Technicals, and Derivatives at Angel Broking

RBL Bank Ltd: Buy| LTP: Rs 609.30| Target: Rs 642| Stop Loss: Rs 587| Return 5%

This has been clearly one of the top outperforming stocks within the midcap private banking space. Recently, this stock managed to clock new highs despite some of its peers lying around their 52-week low.

The higher degree time frame charts are extremely strong and hence, recent correction in the stock can be interpreted as a profit booking move.

In the course of action, the stock prices managed to find support around its previous breakout points and eventually attracted a strong buying interest which hints towards a possibility of resuming its larger degree uptrend.

Hence, traders can look to go long on the stock for a target of Rs.642 in coming days while a stop loss can be fixed at Rs.587.

Tata Motors Ltd: Buy| LTP: Rs 277.50| Target: Rs 394| Stop Loss: Rs 269| Return 42%

The stock has been a laggard since the last couple of years and despite benchmark seeing massive appreciation in this period, the stock is trading around its five-year low which is certainly a disaster for so many investors.

Recently, the stock consolidated in a narrow range and has formed some near-term base. On Friday, we witnessed a breakout from this congestion zone along with considerably higher volumes.

We expect the stock to give some relief rally in days to come. One can look to go long for a positional target of Rs.394 in coming weeks. The stop loss can be placed at Rs.269.

Analyst: Rajesh Palviya, Head – Technical & Derivatives Analyst, Axis Securities Ltd.

KPR Mill Ltd: Buy| LTP: Rs 700.25| Target: Rs 728| Stop Loss: Rs 663| Return 4%

On the weekly chart, the stock has formed a "Double Bottom" - a short-term reversal pattern which signals a shift of short-term trend reversal to the upside.

This breakout is accompanied with a huge spurt in volumes which supports the bullish sentiments ahead. The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in a positive terrain which supports upside momentum to continue in the near-term. The stock is well placed above its 20, 50 and 100-day SMA which supports bullish sentiments ahead.

Lupin Ltd: Buy| LTP: Rs 956.65| Target: Rs 1022| Stop Loss: Rs 915| Return 7%

On the weekly chart, the stock has formed an "Inverse Head & Shoulder" - a short-term reversal pattern which signals a shift of short-term trend reversal to the upside.

This breakout is accompanied by an increase in volumes which supports bullish sentiments ahead.

The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in a positive terrain which supports upside momentum to continue in the near-term. The stock is well placed above its 20, 50 and 100-day SMA which supports bullish sentiments ahead.

Torrent Power Ltd: Buy| LTP: Rs 269.20| Target: Rs 290| Stop Loss: Rs 258| Return 7%

On the weekly chart, the stock has formed a "Double Bottom" - a short-term reversal pattern which signals a shift of short-term trend reversal to the upside.

This breakout is accompanied with a huge spurt in volumes which supports the bullish sentiments ahead.

The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in a positive terrain which supports upside momentum to continue in the near term. The stock is well placed above its 20, 50 and 1000-day SMA which supports bullish sentiments ahead.

Cadila Healthcare Ltd: Buy| LTP: Rs 425.85| Target: Rs 449| Stop Loss: Rs 398| Return 5%

With current week's strong gains the stock has decisively broken out from its down sloping channel breakout at 402 levels on the closing basis. This breakout is accompanied with rising volumes which supports bullish sentiments ahead.

The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in a positive terrain which supports upside momentum to continue in the near term. The stock is well placed above its 20, 50 and 100-day SMA which supports bullish sentiments ahead.

Brokerage: SMC Global Securities

Granules India Ltd: Buy| LTP: 121.10| Target: Rs 135| Stop Loss: Rs 109| Return 11%

The stock closed at Rs 121.10 on 07th September 2018. It made a 52-week low at Rs 71.55 on 05th June 2018 and a 52-week high of Rs. 150 on 15th January 2018.

The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently placed at Rs 107.28. The stock has been forming an “Inverted Head and Shoulder” pattern on the weekly charts, which is bullish in nature.

Last week, the stock gained momentum which led to a breakout from the pattern and has also managed to close above the same. Apart from this, it is comfortably trading above its 200-WEMA, which also gives a positive outlook for the coming days.

Therefore, traders can buy in the range of 117-118 levels for the upside target of 132-135 levels with a stop loss below 109.

KPIT Technologies Ltd: Buy| LTP: Rs 308.25| Target: Rs 330| Stop Loss: Rs 285| Return 7%

The stock closed at Rs 308.25 on 07th September 2018. It made a 52-week low at Rs 112.05 on 8th September 2017 and a 52-week high of Rs. 314.50 on 07th September 2018.

The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 244.78. The stock is continuously trading in higher highs and higher lows on the weekly charts, which is considered to be bullish.

Apart from this, it was consolidating in a narrow range of 290-305 levels for few weeks and has come out from the range and trading higher, so follow up buying may continue for coming days.

Moreover, technical indicators such as RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of Rs 302-305 levels for the upside target of Rs 325-330 levels with a stop loss below Rs 285.

Brokerage: Karvy Stock Broking

M&M: Buy| LTP: Rs 973.45| Target: Rs 1,014| Stop Loss: Rs 946| Return 4%

M&M closed the week on a positive note, gaining over 0.87 percent, while the broader index, i.e., Nifty Auto closed with positive gains of around 0.25 percent. The stock outperformed the broader index during the last week and it is likely to continue to do so in the coming trading sessions as well.

The stock is trading above its 21/200-DEMA on the daily charts, indicating a positive momentum in the counter in the short-term. The 14-day RSI line has already given a positive crossover with the 9-day signal line and is pointing northwards, reaffirming our bullish stance in the stock in the near-term.

Hence, we recommend Smart Traders to initiate a Long position around the current levels with a stop loss placed below 946 for the target of 1014 levels.

Tata Steel Ltd: LTP (Sep FUT): Rs 622| Target: Rs 660| Stop Loss: Rs 594| Return 6%

Tata Steel gained nearly 2.50 percent, while Nifty Metal index gained nearly 1.7 percent on a weekly closing basis, exhibiting outperformance of the stock as compared to the benchmark.

After forming a swing low near 493 levels in the mid of July’18, the stock price witnessed a subtle recovery in the last couple of weeks. In the last few sessions,’ the stock managed to move and sustain above its major 200-DEMA which is currently placed near 587 levels.

It also holds above its 21 & 50-DEMA placed near 587 and 576 levels, respectively. In the last session, the stock gave a breakout from consolidation with a spurt in volumes.

On the momentum set up, the 14-period RSI found support above equilibrium levels during consolidation mode and recently surging towards overbought territory, indicating renewed buying interest in the counter.

At the current juncture, the stock provides an opportunity to enter, as the stock may potentially rise. Hence, we recommend Smart Traders to initiate Long position near Rs 622 levels for the target of Rs 660, keeping a stop loss below Rs 594 levels.

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.
Kshitij Anand is the Editor Markets at Moneycontrol.

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