The coming week being the expiry one, first half would be very important for our market as we expect some volatility to pick up and hence, we may see some clear moves thereafter, says Sameet Chavan, Chief Analyst- Technical Derivatives, Angel Broking.
The Nifty50 rose by about 1 percent after consolidating in a narrow range for the at least 4 trading sessions before recording a breakout on Friday.
The index is likely to remain volatile ahead of November month’s expiry due on Thursday. High Call Open interest (OI) is placed at strike price 10,500 and highest Put OI is placed at strike 10,300. The expiry is likely to happen in this 200 point range.
What concerns technical analysts that on Friday Nifty failed to witness follow up buying which is ideally the case whenever index breakout. Hence, investors should be better off betting on individual stocks.
“We have been mentioning the trading range of 10250 – 10368 for the index. After four days of struggle, the Nifty finally managed to break the upper range. But, the kind of buying momentum ideally should have been witnessed after a breakout was clearly lacking. Hence, we need to relook the situation and will have to revise the upper range a bit,” Sameet Chavan, Chief Analyst- Technical Derivatives, Angel Broking Pvt Ltd told Moneycontrol.
“The bullish momentum can be witnessed only above this mentioned resistance of 10405. On the flipside, 10350 – 10307 would now be seen as a key support zone; because, violation of this may apply brakes on the recent optimism,” he said.
Chavan further added that the coming week being the expiry one, first half would be very important for our market as we expect some volatility to pick up and hence, we may see some clear moves thereafter.
Here is a list of top five stocks which investors can give up to 14% return in the short term:
Dish TV: BUY| Target Rs90| Stop Loss Rs75| Return 10%
A strong corrective move began during the early part of April and since then the stock has undergone a massive price-wise as well as time-wise corrective phase.
In the last couple of days, the stock prices managed to give a smart recovery after consolidating around the Rs75 mark for nearly three weeks.
In this course of action, we can now see a breakout from the bullish ‘Cap and Handle’ pattern on the daily chart along with sizable volumes. Hence, we recommend buying this stock on a minor decline for a target of Rs.90. The stop loss now should be fixed at Rs.75.
Brigade Enterprises: BUY| Target Rs330| Stop Loss Rs288| Return 11%
This south based midcap ‘Realty’ counter has been one of the steady performers since the early part of 2014. The recent multi-month consolidation came to an end last week after the stock prices broke out from the hurdle of Rs294 on a closing basis.
This price development was accompanied by reasonably higher volumes; providing credence to the breakout. Hence, the last couple of day’s breather can be construed as a good buying opportunity.
Traders can buy this stock for a target of Rs.330 by following a strict stop loss of Rs.288.
Hero MotoCorp: SELL| Target Rs3480| Stop Loss Rs3731| Time 5-10 sessions| Return 5%
A strong Bull run in this stock took a pause during the early part of September. Since then, the stock has been experiencing a corrective phase in a gradual manner.
Recently, we witnessed a breakdown from crucial ‘Neckline’ around Rs3700. In the last couple of weeks, the stock prices resisted around it and are facing strong selling pressure at intraday highs.
Thus, we expect some weakness to continue in this counter. One can sell this stock for a target of Rs.3480 over the next 5 – 10 sessions. The stop loss should be fixed at Rs.3731.
Brokerage Firm: SMC Capital
DCB Bank: BUY| Target Rs210| Stop loss Rs175| Time 1-2 months| Return 13%
The stock closed at Rs186.85 on 24th November 2017. It made a 52-week low at Rs102.55 on 23rd December 2016 and a 52-week high of Rs213 on the 16th June 2017.
The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs167.85. The stock is forming a “Symmetrical Triangle” pattern on the weekly chart, which is considered to be bullish.
It is a continuation pattern, which indicates the old trend is intact and new move is going to start. Moreover, the stock is closed on verge of breakout of pattern with high volume so buying can persist for the stock.
Therefore, traders can buy the stock in the range of 183-185 levels for the upside target of 205-210 levels with a stop loss below 175.
Tamilnadu Petroproducts: BUY| Target Rs88| Stop Loss Rs69| Time 1-2 months| Return 14%
The stock closed at Rs77.65 on 24th November 2017. It made a 52-week low at Rs22.15 on 27th December 2016 and a 52-week high of Rs79.85 on 24th October 2017.
The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs53.89. The stock is continuously trading at higher highs and higher lows on the weekly chart, which is bullish in nature.
Recently, the stock witnessed a massive up move from Rs55 to Rs75 levels and consolidated in a narrow range for three months with a positive bias.
Last week, the stock had given the breakout of “Bull Flag” pattern and also managed to close above the same with rising volume. So, buying momentum is expected to continue for the stock. Therefore, traders can buy in the range of Rs76-77 levels for the upside target of Rs86-88 levels with a stop loss below Rs69.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.
Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis