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Last Updated : Jan 09, 2018 02:15 PM IST | Source: Moneycontrol.com

What to buy or sell @ record highs? Here are 8 money making ideas based on technicals

Sustaining above 10,550 levels on tradable basis Nifty can rally initially towards 10,720 and then 10,840 levels. On the downside, the index has support at 10,400 which was last week low and a break below the said level may trigger a decline towards 10,320 and then 10,230 levels, says Ashish Chaturmohta, Head of Technicals and Derivatives, Sanctum Wealth Management.

 
 
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The Nifty50 rose to a fresh record high of 10,659.15 but witnessed profit booking at higher levels which pushed the index in the red in afternoon trade. But, there are plenty of stock specific opportunities which traders can track for a return of up to 22 percent in short term.

If we look at the broader price movement seen in the last couple of months, the price had largely traded in a range of 10,500-10,000 odd levels and formed W shaped pattern.

The immediate resistance on the way up is placed around 10,650, and a failure to cross this resistance may trigger minor profit booking to levels of 10,400-10,260. On the higher side, next target is placed around 10,720-10,840 levels.

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“For the last couple weeks, the price had been trading in a range and consolidating its gains after the rally index witnessed in the month of December last year. Now index has given breakout from this range indicating the market is going to move higher after forming a base,” Ashish Chaturmohta, Head of Technicals and Derivatives, Sanctum Wealth Management told Moneycontrol.

“Sustaining above 10,550 levels on tradable basis index can rally initially towards 10,720 and then 10,840 levels. On the downside, the index has support at 10,400 which was last week low and a break below the said level may trigger a decline towards 10,320 and then 10,230 levels,” he said.

India VIX, post the events in December month slide down to 11.59 levels and since then inched up to 13.74 levels. A further rise in volatility could be the cause of concern for bulls.

Here is a list of top 8 trading ideas by experts which can give up to 22 percent return in the short term:

Analyst: Ashish Chaturmohta, Head of Technicals and Derivatives, Sanctum Wealth Management

PVR Limited: Buy | CMP Rs 1460| Stop loss: Rs 1390| Target: Rs 1650 | Return 13%

The stock touched high of Rs 1655 in April 2017 and then corrected down to Rs 1142 levels in September 2017. The stock has been consolidating for last six months and formed bullish inverted head and shoulders pattern on daily chart.

The stock has formed a bullish pennant pattern over the last two weeks and witnessed a breakout in the last session. The price has moved above the long-term 200-days moving average (DMA).

The volumes activity is also above average indicating buying participation in the stock. The MACD has moved above the neutral level of zero on the weekly charts suggesting that the correction is over in the stock and ready to move higher.

Price is currently trading at neckline level and is likely to see a breakout on the upside considering the bullish price structure. The stock is a buy at current levels and on dips to Rs 1440 with a stop loss below Rs 1390 for a target of Rs 1650 levels.

Future Lifestyle Fashions Ltd: CMP: Rs 396| Stop loss: Rs 375| Target: Rs 460 | Return: 16%

The stock had seen a strong rally from Rs 120 to Rs 380 levels in the first half of the last year, and since then the stock has been trading sideways largely between Rs 300 and Rs 400 odd levels for the last seven months.

It has been consolidating its gains after the run-up and formed a base for the next leg of the uptrend. The lows during the consolidation have been progressively higher indicating buying coming at higher levels.

In the last five sessions, the price has rallied on high volumes to the top end of the range and is now trading at breakout level. The ADX line, an indicator of trend strength, is currently at 26.5 level on the daily chart and moving up above neutral level of 20.

The stock is likely to see a breakout on the upside and investors can look to buy the stock at current level and on dips to Rs 388 with a stop loss below Rs 375 and a target of Rs 460 levels.

Ujjivan Financial Services Ltd: Buy | CMP: Rs 421| Stop loss: Rs 395| Target: Rs460-480| Return: 14%

Since the August 2017 low of Rs 285, the stock has been forming a higher top higher bottom formation. Volumes have been above average on the up move indicating buying participation.

The stock price has now crossed the swing high of Rs 417 and closed above it. It has seen a Bollinger band breakout with the expansion of bands indicating price to see continuation trend in the direction of the breakout.

Thus, the stock is a buy at current level and on dips to Rs 410 with a stop loss of Rs 395 for a target of Rs 460-480 levels.

ICICI Prudential Life Insurance Ltd: Buy | CMP: Rs 412| Stop loss: Rs 390 | Target: Rs 454-475 | Return: 15%

The stock has been declining since it touched a high of Rs 509 on July 2017 and made a low of Rs 362 last month. In the process, the price has retraced 61.8 percent Fibonacci retracement level of the upswing (271-509).

The rally in the last couple of days has crossed downward sloping resistance trend line of last three months with strong price momentum and high volumes, indicating breakout is likely to sustain.

The stock has seen Bollinger band breakout with the expansion of bands indicating price to see continuation trend in the direction of the breakout. Thus, the stock is a buy at current levels and on dips to Rs 403 with a stop loss below Rs 390 and a target of Rs 454-475 levels.

CG Power and Industrial: Buy | CMP: Rs 96| Stop loss: Rs 90| Target: Rs 110

The stock has formed rounding base pattern formation over last seven-month period. On closing basis stock has witnessed from this pattern with strong price momentum and high volumes.

The stock has seen a Bollinger band breakout with the expansion of bands indicating price is going to see continuation trend in the direction of the breakout.

The momentum indicators have given positive crossover with their respective averages on daily chart indicating a change in trend. Thus, the stock is a buy at current levels and on dips to Rs 94 with a stop loss of Rs 96 for a target of Rs 110 levels.

Analyst: Aditya Agarwala, Technical Analyst, YES Securities (I) Ltd

IRB Infrastructure Developers Ltd: Buy | Target: Rs 285| Stop loss: Rs 228 | Return: 17%

On the weekly chart, IRB Infrastructure Developers Ltd. is on the verge of a breakout from a channel pattern suggesting resumption of the bull trend on cards.

A sustained trade above Rs 251 which is neckline of the pattern on higher volumes may trigger a bullish breakout. On the daily chart, the stock has broken out of an inverse head & shoulders pattern affirming bullishness portending to higher levels.

The relative strength index (RSI) is also favoring the bulls as it has taken support at the Rs 40 level and turned higher. The stock may be bought in the range of Rs 242-246 for targets of Rs 271-285, keeping a stop loss below Rs 228.

Great Eastern Shipping Company Ltd: Buy | Target: Rs 500 | Stop Loss: Rs 360 | Return: 18%

On the weekly chart, The Great Eastern Shipping Company Ltd is on the verge of a breakout from an ascending triangle pattern triggering a bull trend reversal.

The neckline of the pattern is at Rs 426; sustained trade above the neckline with healthy volumes can extend the up move. On the daily chart, the stock has broken out from a rounding bottom pattern affirming strong the bullishness.

The RSI has turned upwards breaking out of the upper band of the Bollinger Bands suggesting higher levels in the coming trading sessions. The stock may be bought in the range of Rs 420-425 for targets of Rs 470-500, keeping a stop loss below Rs 360.

Indiabulls Real Estate Ltd: Buy | Target: Rs 285| Stop loss: Rs 210| Return 22%

On the weekly chart, Indiabulls Real Estate Ltd. has broken out of a bullish flag pattern triggering a resumption of the bull trend. A sustained trade above Rs 227 can extend the uptrend in the coming trading sessions.

Further, RSI has turned higher breaking out of the Bollinger Bands after taking support at the Rs 50 level suggesting higher levels. The stock may be bought in the range of Rs 230-235 for targets of Rs 260-285, keeping a stop loss below Rs 210.

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.
First Published on Jan 9, 2018 02:10 pm
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