The Nifty50 slipped by about 2 percent for the week ended March 23 with the index closing below its crucial support level placed at 10,000. The week started on a positive note but the momentum fizzled out soon after US President Donald Trump ignited Trade War woes.
First four day’s price action of Nifty50 was almost neutral with two positive pull back candles and two bearish candles. But, Friday’s huge gap-down move accompanied by the global uncertainty created havoc on Indian markets.
This has technically tilted the balance in favour of bears who are already on a rampage since February 2018. However, as the market already corrected in the last two months with a price damage of around 10 percent the incentives for bears after Friday’s gap down opening appears to be little.
Hence, around current level which is close to critical 38.2 percent, retracement level of entire rally from December 2016 lows of 7893 to 11171, some sort of stability can’t be ruled out.
However, if the market in its own wisdom decides to breach 9900 level then major support appears to be in the zone of 9736 – 9685 levels.
Interestingly, on the price chart, around August 2017 Nifty50 spent considerable time as it consolidated between the levels of 10135 to 9685 levels for 8-weeks before breaking out. Hence, 9700 level assumes a lot of significance and can be considered as a sacrosanct support on the downside.
Here is a list of top buy or sell ideas by experts for the coming week which could give up to 13% return:
SMC Global Securities:
Marico Ltd: BUY | Target: Rs 370| Stop loss: Rs 300| Return 13%
The stock closed at Rs 325.55 on March 23, 2018. It made a 52-week low at Rs 284.15 on February 6, 2018 and a 52-week high of Rs 348.70 on September 13, 2017.
The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 308.86. As we can see on the chart that stock was consolidating in the range of 290-330 levels for three months and formed a “Symmetrical Triangle” on the weekly charts and has given the breakout of the pattern.
Last week, the stock has registered gains over 8 percent and managed to close above the breakout level with high volume.
Moreover, it has also formed a long bullish candle on weekly charts which also suggest buying for the stock. Therefore, one can buy in the range of Rs 318-322 levels for the upside target of Rs 360-370 levels with a stop loss below Rs 300.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
JK Lakshmi Cement: BUY | Target: Rs 503| Stop loss: Rs 405| Return 11%
For the last couple of weeks, this counter was in consolidation mode in the range of 440 – 410 levels and appears to have broken out of this range in Friday’s session. Hence, traders can look for a target of 503 and consider buying now and on declines up to 425 with a stop of Rs405.
Pidilite Industries Ltd: BUY | Target: Rs 970| Stop loss: Rs 885| Return 7%
This counter appears to be in a pause mode after a vertical rise from the lows of Rs 858 to Rs 924 levels. As long-term trends are looking quite attractive and the fact this scrip is consolidating near to its lifetime highs there is more upside once it breaks out of the range. Hence, this corrective phase should be utilised by traders to go long in this counter for an initial target of Rs 970 with a stop of Rs 885.
Power Grid: BUY | Target: Rs 211| Stop loss: Rs 187| Return 8%
With seven months of correction from the highs of Rs 226, this counter appears to have hit a bottom after retracing 62 percent of its last leg of the rally from the November 2016 lows of Rs 166.
Correction at recent lows of Rs 190 appears to have ended in this counter as it started building a base in a narrow range of Rs 190 – 199 levels.
Once it breaks out above 199 then a fresh leg of uptrend shall start with an initial target of Rs 211. Positional traders should buy into this in anticipation of such a breakout, and a Stop advised for the trade will be Rs 187.
Analyst: Rajesh Palviya, Head – Technical & Derivatives Analyst, Axis Securities
Marico: CMP: Rs327 | BUY | Target: Rs 355| Stop loss: Rs 310| Return 8%
For the week, Marico has witnessed bounce back from Rs 300 level which is a multi-week support for the stock. Another prominent observation on the price chart of Marico is that the entire consolidation underway since January 2018 till date has formed a down-sloping trend line.
The breakout of this trend line is witnessed at Rs 311 level on the weekly chart. The stock is sustaining above its 20-days moving average which supports bullish sentiments ahead.
On the volumes front, the stock has witnessed significant rise around breakout level indicating increased participation on the rally.
Both weekly and monthly strength indicator RSI along with the momentum indicator Stochastic are in bullish territory and sustaining above their reference lines which signals strength and upward momentum in price. Thus, taking into consideration the above factors, the maximum upside can be expected to Rs 350-355.
Titan Company Ltd: BUY | CMP: Rs 895 | Target: Rs 960| Stop loss: Rs 850 | Return 7%
Titan Company is in an uptrend across all the time frames forming higher top - higher bottom formation. Since Jan 2018, the stock was in major consolidation mode within Rs 890-790 band on the weekly chart.
It gave a breakout at Rs 890 levels and is sustaining above the same. The stock is also sustaining above its 20, 50 and 100 SMA which supports bullish sentiments ahead.
Both daily & weekly strength indicator RSI along with the momentum indicator Stochastic are in bullish territory and sustaining above their reference lines which signals strength and upward momentum in price. Thus, taking into consideration the above factors, the maximum upside can be expected to Rs 960-975.
GE Power India Ltd: BUY | CMP: Rs 860| Target: Rs 945| Stop loss: Rs 825 | Return 10%
Since February 2018, the stock was in major consolidation mode within Rs 860-800 band on the daily chart. It has also formed Hammer like candlestick formation on the weekly chart indicating buying support at lower levels.
The stock is sustaining above its 20-days moving average which supports bullish sentiments ahead. On the volumes front, the stock has witnessed significant rise around breakout level indicating increased participation on the rally.
The daily strength indicator RSI along with the momentum indicator Stochastic are in bullish territory and sustaining above their reference lines which signals strength and upward momentum in price. Thus, taking into consideration the above factors, the maximum upside can be expected to Rs 930-945.
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
Manappuram Finance Ltd: BUY | Target: Rs 116 | Stop loss: Rs 98 | Return 10%
Despite trading in a sideways direction, Manappuram made a strong rebound in the last trading session to form an uptrend channel on its price chart.
The scrip continued to take a strong support from Rs 101-98 level, and decisively managed to break out from its 200-days EMA level coupled with strong volume growth.
The scrip formed a bullish candlestick pattern on its daily price chart coupled with positive cues from its MACD and Signal Line.
Further, the relative strength index or the RSI level signaled upwards bias. The support level for scrip is currently placed at Rs 96 and resistance level from the upper band at Rs 123. We have a BUY recommendation for Manappuram Finance which is currently trading at Rs 105.80
ADF Food Ltd: SELL| Target: Rs 182 | Stop loss: Rs 208 | Return 7%
ADF Food continued to consolidate on its daily price movement despite gaining a momentum on an intraday basis at Rs 208 level but failed to vindicate the momentum, and slipped below its second support band.
The scrip continued to decline with about 12 percent on weekly basis, and weak support on volume front indicating a negative trajectory.
The scrip formed a strong bearish candlestick pattern on its weekly price chart as price continued to trade below all the moving average level which indicates a strong downtrend.
Further, the secondary momentum indicator continued to indicate negative signal with RSI -20.6 at oversold level coupled with weak support from MACD trend.
The scrip is facing a resistance at Rs 213 levels and support at Rs 176 levels which will remain crucial for scrip. We have a SELL recommendation for ADF Food which is currently trading at Rs 195.50
Oil India Ltd: BUY | Target: Rs 370 | Stop loss: Rs 335 | Return 6%
After consolidating across Rs 319 levels, Oil India continued to trade on uptrend trajectory for a two consecutive session as it managed to breakout from its 50-days EMA levels indicating a positive signal.
The scrip also witnessed a volume breakout from its average level and managed to close on positive cues with about 3 percent gain on intraday basis during the last closing session.
On the daily price chart, the scrip made a solid bullish candlestick pattern coupled with RSI indicating a price just trading above its crucial resistance level.
The RSI at 55 levels indicates a favorable buying regime together with a strong cue from MACD and Signal Line. The scrip is now facing a resistance at Rs 388 levels and support level at Rs 328. We have a BUY recommendation for Oil India which is currently trading at Rs 349.95Disclaimer:
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