By SMC Global
Despite a short term bounce after three-day consecutive fall, we are not seeing any improvement in derivative data. The overall data remains on bearish side for upcoming sessions.
However, technical bounce from lower levels is quite possible due to the oversold condition of the market which should be used as selling opportunity for short term traders.
The Nifty50 has strong resistance in the range of 9,850 to 9,880 and support is placed in the range of 9,700- 9,680.
The foreign institutional investors (FIIs) has been continuously selling calls and buying puts as well they are net- net sellers in both derivative and cash segment in the currents series.
Generally August series remains volatile with negative returns if we analyse historical records and the data indicates short buildup by the stronger hand in current series. Going forwards, we advise traders to remain cautious in current series
Here is a list of top five stocks which can give up to 16% return in short term:
Manpasand Beverages: BUY| Target Rs880| Stop Loss Rs755| Return 10%
The stock has been trading in the upward channel with higher high and higher lows on the weekly charts and maintaining its bull run with multiple supports on the downside.
On the daily charts, it has been seen consolidating in range of Rs820 and Rs750 from last three months. However, in the previous session, it has managed to give a breakout above its consolidation zone.
Traders can accumulate the stock in a range of Rs800-820 for the target of Rs880 with a stop loss below Rs755.
MRPL: BUY| Target Rs135| Stop Loss Rs112| Return 12%
On weekly charts, the stock has been trading higher since last one year and has given some handsome returns in past. On technical charts, it is maintaining its uptrend and trading in rising channel.
This week it has once again given fresh breakout above 125 levels after forming rectangle formation on daily charts. Traders can accumulate the stock in a range of Rs120-125 for the upside target of Rs135 with a stop loss below Rs112.
Gruh Finance: BUY| Target Rs575| Stop Loss Rs460| Return 15%
From the last one month, the stock has been consolidating in a range of Rs450-505. However, this week it has given a consolidation breakout above the key resistance area of Rs505 with decent volumes.
Moreover, it is trading well above its short and long term moving averages. The breakout in price along with positive divergence in oscillators like RSI and stochastic supports more upside in prices going forward.
Traders can accumulate the stock in a range of Rs500-510 for the target of Rs575 with a stop loss below Rs460.
VIP Industries: BUY| Target Rs236| Stop Loss Rs188| Return 15%
The stock has formed bullish flag formatio0n on weekly charts and has given upside breakout in prices this week. On the daily charts as well the stock can be seen rising with increasing volumes which suggest a rally to remain to sustain in coming sessions as well.
Traders can accumulate the stock in a range of 205-210 for the target of 236 with a stop loss below 188.
JMC Projects India: BUY| Target Rs420| Stop Loss Rs325| Return 16%
The stock has been consolidating in range of Rs320-360 from last five weeks. The stock has formed ascending triangle formation during this consolidation and now has given upside breakout in prices with rising volumes.
Traders can accumulate the stock in a range of Rs360-370 for the target of Rs420 with a stop loss below Rs325.
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