Abnish Kumar SudhanshuAmrapali Aadya Trading & Investments
The market started the week on a positive note and ended higher on Monday after closing in the red for two consecutive sessions earlier. The index managed to close near all-time highs supported by pharma, banks and metal sectors while telecom sector seen under pressure during the session.
The Nifty closed well above short-term indicator which is provided by 20-days moving average (DMA) where RSI and MACD are both looking positive which might attract some more buying into the system in the coming session.
The closing of the market seems attractive to the bulls, which are likely to continue in the coming session as well.
Here is a list of top five stocks to buy based on technical factors:
Central Bank of India: BUY | Target: Rs 122 | Stop Loss: Rs 110 | Return: 7%
The stock has taken a strong support near its 20-days moving average (DMA) during the session and reverted just after touching those lower levels near Rs 107-108.
The counter is expected to move further higher as it has given positive close with increased volumes after three consecutive sessions of declines and is likely to continue the momentum for the coming session as well.
The momentum indicator such as RSI is also firm after a sharp decline suggesting some immediate recovery from the present levels.
Tata Elxsi India: BUY | Target: Rs 1,580 | Stop Loss: Rs 1,542 | Return 2%
The counter closed with a positive hammer candle formation and was supported by 20-days moving averages hinting upside momentum will remain intact for the coming session as well.
The stock has shown a breakout of a sideways movement that lasts since many session within a range of Rs 1,525-1,555.
The momentum indicators are showing positive momentum to continue as MACD has generated a fresh breakout while RSI is moving upwards above 55 levels.
Edelweiss Financial Services: BUY | Target: Rs 194 | Stop Loss: Rs 184 | Return: 3%
The stock has gained momentum on the daily charts support by 20-days moving averages with increased volumes and a recent resistance breakout of Rs185.50-186 levels.
The counter is gradually moving towards its psychological level of 200 in the coming few sessions. The momentum indicators are about to enter into the overbought levels as RSI is heading towards 70 and MACD after its crossover heading northwards.
ABB: BUY | Target: Rs 1,620 | Stop Loss: Rs 1,535 | Return: 3%
ABB made a positive hammer candle formation on the daily charts on Monday, suggesting some more upside movement to continue in the coming few sessions which has been followed by a decline and a Doji.
The volumes are firm at present levels along with momentum indicators e.g. RSI and MACD both are hinting some more positive momentum to continue as RSI is entering into overbought levels, so the very short term movement should be treated as upwards.
DLF: BUY | Target: Rs 220 | Stop Loss: Rs 205 | Return: 4%
The stock has continued its upside momentum during the session and closed with a positive Doji candle above previous day’s high. The counter is likely to move further higher in the coming session as well and should touch upper levels near Rs220.
The stock is supported by a number of indicators e.g. it is trading way above its 20-days moving average while momentum indicators are inching upwards along with firm volumes.
Disclaimer: The author is Director & Research Head, Amrapali Aadya Trading & Investments. 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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