Aditya Agarwal Way2Wealth Brokers Pvt. Ltd
The year 2018 started on a pessimistic note and Nifty50 broke its previous week low of 10460 which coincided with the Doji candle. Subsequently, the bulls made several attempts to cross 10500 level but failed to breach it on closing basis which indicates loss of momentum.
Broadly speaking, although the Nifty crossed its previous all-time high, Nifty Bank is still trading well below its previous all-time high of 25,954. Hence, the move of Nifty got failed to confirm by the Nifty Bank which is the basic tenets of Dow Theory.
In Thursday’s session, fresh buying interest was seen in heavyweight stocks that helped Nifty to breach 10500 and close above that. However, on the higher side, call writing seen at 10500 and 10600 strike option will continue to be a stiff supply zone for indices in the short-term.
At this juncture, 10400 will act as an immediate support for the index and any break below this level will trigger a fresh sell-off. In that case, Nifty may correct towards 10330-10270 levels respectively.
On the other side, 10570 will act a strong resistance whereas the near term resistance is placed around 10,520 on a closing basis.
Here is a list of top 4 stocks which can give up to 25% return in the next 15-21 sessions:
ICICI Prudential Life Insurance Company Ltd: BUY above Rs383| Target Rs410| Stop loss Rs370| Time Frame 8 to 10 sessions| Return 7.8%
Looking at the daily chart, the stock has been under pressure and has formed a Lower Top Lower Bottom formation; however, the RSI (14) momentum indicator failed to confirm its move and signaled bullish divergence pattern.
Recently, the stock found support near Rs370 which coincided with the 78.6% retracement of its recent daily swing move. The previous two days candle resembles a formation of Bullish harami. The said pattern will be activated if the stock starts sustaining above 383.
Hence, we recommend traders to buy this stock above Rs383 with a price target of Rs410 and a stop loss placed below Rs370.
RCF: BUY around 103.50 / 101.50| Target 115 / 120| Stop loss Rs94.90| Timeframe 15 to 21 trading sessions| Return 16%
The stock has been consolidating in a narrow range and has formed a Descending Triangle pattern on the weekly charts. During this week, the stock eventually confirmed its breakout from said pattern.
The weekly Bollinger Band has started expanding along with a rise in volume activity. Considering the above technical parameters, we recommend traders to buy this stock in a range of 103.50 – 101.50 with a price target of 115 first and second target of 120. Stop loss should be placed at 94.90.
Snowman Logistics: BUY at Rs61| Target Rs76| Stop loss Rs54.30| Time frame 15 to 21 trading session| Return 25%
The stock has been under tremendous pressure and corrected from its all-time high of around Rs134. Subsequently, it hit a fresh 52-week low of around Rs 46 and rebound gradually.
Recently, the stock has seen strong buying interest and as a result, it managed to break the downward sloping trend line drawn from its all-time high of Rs 134.
During the week, we saw decent volume activities which support our hypothesis. Hence, we advocate traders to buy this stock at Rs 61 with a price target of Rs 76 and stop loss placed at Rs 54.30.
Britannia Industries: SELL below Rs4595| Target Rs4270| Stop loss Rs4740| Timeframe 15 to 20 trading session| Return 7%
Looking at the daily chart, the stock witnessed a spectacular rally in past several months and in that optimism stock hit a fresh all-time high of Rs 4964. Subsequently, the bullish momentum turned and we saw decent profit booking.
Recently, the stock has approached towards its previous daily swing low placed near RS 4597 which also coincides with the upward sloping trend line joined from the bottom of Rs 3352.
Hence, any breaks below this level will trigger fresh sell-off, in that case, we may stock slide towards Rs 4270.
Thus, traders are advised to sell this stock below Rs4595 with a price target of Rs4270. A stop loss should be placed below Rs4740.
Disclaimer: The author is Head Technical Research, Way2Wealth Brokers Pvt. Ltd. The views and investment tips expressed by the 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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