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The Nifty rallied on Monday but witnessed selling pressure around its crucial resistance level of 10,400. It witnessed some profit booking on Tuesday but analysts’ feel that the upside remain intact although the index could face some resistance above 10400.
The Nifty50 continued moving in an upward momentum on the back of positive global and domestic cues on Monday. Buying was noticed across sectors except IT, Metal and Realty which observed some profit booking.
A shooting star like pattern was observed on the daily charts yesterday which signaled exhaustion, as well as loss of breadth in the market. Now, a follow-up buying is needed to nullify, else we may see some profit booking in the near-term since it is a reversal pattern, suggest experts.
"A Shooting star is formed in an uptrend with upper shadow at least twice as big as the real body while the colour of the body, bullish or bearish, is less important," Mustafa Nadeem, CEO, Epic Research told Moneycontrol.
"The immediate resistance on Nifty is now placed at 10,400 odd levels which are needed to be taken out in the follow-up buying. The support levels have now shifted to 10300 - 10320 levels. On an immediate basis, support is seen at 10,300," he said.
The structure of the overall higher top and the higher bottom formation is in place and in the short-term, the trend is intact since we are above short-term moving averages like 20, 50 and so on.
Here is a list of top 9 stocks which could give up to 28% return in the month of November:
Analyst: Aditya Agarwal, Way2Wealth Brokers Pvt. Ltd
Titagarh Wagons Ltd: Buy Around 137 - 134, Target 164, Stop loss 123. Time frame 15 to 21 sessions| Return 18%
The stock consolidated in a narrow range and formed a Triangle pattern on weekly chart. During last week, stock confirmed its breakout from said pattern.
The weekly RSI (14) entered above 60 levels and with this weekly Bollinger Band has also started expanding. Hence, we recommend traders to accumulate this stock in a range of 137 to 134 with a price target of 164 and stop loss placed below 123.
Hero MotoCorp: Buy Around 3840 – 3820, Target 4123, Stop loss 3700, Timeframe 15 to 21 trading sessions| Return 7.5%
After posting an all-time high of 4092; stock corrected gradually in past few weeks. However, the fall got arrested near 3660 which coincided with its previous weekly swing lows.
Recently, stock consolidated in a narrow range and formed a triangle pattern. On a weekly chart, stock post the bearish divergence, the RSI (14) momentum indicator signals an oversold condition.
Considering the above evidence, we advocate traders to buy this stock in a range of 3840 – 3820 with an upside price target of 4123 and Stop loss placed at 3700.
DLF: Buy Above 190, Target 240, Stop loss 172, Timeframe 15 to 21 trading session| Return 28%
Looking at the weekly chart, the stock has seen sharp run-up from the bottom of 100 and rallied till 214. Subsequently, stock corrected and traded in a narrow range.
In the process, the weekly chart formed an Inverse Head & Shoulder pattern and recently tested the neckline of said pattern which is pegged near 190. The weekly 9-45 EMA on price is still positive indicating the current trend is up.
The daily RSI (14) started entering inside the 60 levels. Hence, we advise traders to buy this stock above 190 with a price target of 240. Stop loss should be placed at 172.
Glenmark Pharma: Buy At 617, Target 685, Stop loss 590, Timeframe 15 to 20 trading session| Return 12%
The stock has been under tremendous pressure for several months and in that pessimism, the stock hit a fresh 52-week low of 566. Subsequently, a pullback was seen towards 641 but stock failed to hold its gains and resumed its downtrend.
Glenmark found support near 61.8% retracement of its entire daily swing move and consolidated further. In that consolidation, the daily Bollinger band index squeezed significantly.
Recently, stock confirmed its breakout from said consolidation. The daily RSI (14) found support near 40 levels. Hence, we expect this stock to rally in coming weeks thus once can enter a long position at 617 with a price target of 685. Stop loss should be placed at 590.
Analyst: Mustafa Nadeem, CEO, Epic Research
Delta Corp: Target Rs285| Stop Loss Rs248| Return 10.4%
The stock is looking strong on the daily chart as it closed near its 52-week high level. A higher top and higher bottom formations are in place with the stock going through some minor consolidation.
The consolidation which is observed on the chart is forming almost a flag pattern which is a bullish continuation pattern.
As per the indicator based study, the RSI (74) and CCI (150) is also looking extremely bullish on the daily chart and may continue to be in the same direction with the stock reaching new highs.
We recommend buying for next 2-3 session with a target of 285 with the stop loss of 248.
Mastek: BUY| Target Rs405| Stop Loss Rs338| Return 10%
The stock was up around 9 percent on Monday with heavy volumes. It has also breached its previous 3-months high level.
On higher timeframe, it is coming out of a strong bullish pattern formation, W, and signals the upward move to be in continuation with prices shifting its trading range.
We see more potential in the stock to break its previous 52-weeks high resistances in the coming days. We recommend buying from current level for the target of Rs405 with a stop loss placed at Rs338.
Titan Company: Target Rs640| Stop Loss Rs600| Return 3.5%
The stock has given a breakout on the daily charts as it has come out of long consolidation. The stock has taken support near its 100-days MA signaling a short-term upmove.
A retest of 100-days MA along with a breakout from the consolidation pattern with higher volume indicates that it may see further buying interest.
The overall trading pattern of the stock indicates a channel formation which may be breached given a divergence in price and indicator.
We expect Titan to perform well with an upside to 640 zones while stop-loss can be placed at 600
Bata India: BUY| Target Rs860| Stop Loss Rs800| Return 4.7%
The stock is in a secular bull run with higher top and higher bottom formations. After a recent consolidation and correction, it has given a new breakout on all time frames.
A retest of short-term moving averages along with closing above it indicates that the undertone is very bullish. It has also seen a fresh crossover of 10 and 20-days MA indicating a short-term base formation to be in place.
We expect Bata India to perform well and continue the upmove with the possible target placed at Rs860 and stop-loss placed at Rs800.
UFO Moviez: BUY| Target Rs470| Stop Loss Rs380| Return 11.6%
It has recently breached its downward sloping resistance trendline drawn from peaks of Q1-2016. A lower top-lower bottom formation has been reversed to higher bottom and higher bottom signaling the reversal of intermediate trend to positive as against negative previously.
It has seen a crossover, positive, on daily as well as closed above crucial resistances on the weekly chart. We expect this reversal to be in place and sustain the move. Traders can buy for the target of Rs470 and a stop loss of Rs380.
Disclaimer: The views and investment tips expressed by the 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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