Nifty will have to sustain above 10,450 levels to continue the uptrend rally. We advise investors to book profits at a higher level ahead of new series.
The Indian equity market witnessed a strong uptrend rally despite a negative momentum during the early weekday session on the backdrop of the election result.
The Nifty index managed to close above a crucial hurdle placed at 10,400 levels last week which enabled the index to breakout with a record high level at 10,501 but it failed to sustain above that level. However, the index closed on the positive trajectory at 10,493.
On the daily price chart, the index formed a strong bull candlestick pattern after consolidating for the past two sessions, indicating a possibility of a rally in the upcoming session.
Further, the momentum indicator turned positive with the relative strength index (RSI) at 63 levels up from earlier zone coupled with MACD still above its Signal Line.
Given a volatile week ahead of F&O expiry, the index is expected to trade with the rangebound level at 10,550 on upside and 10,410 levels on the downside.
However, it will have to sustain above 10,450 levels to continue the uptrend rally. We advise investors to book profits at a higher level ahead of new series.
Here is a list of top 4 stocks which could give up to 11% return in the short term:
Puravankara Projects Ltd: BUY| Target Rs195 | Stop-loss Rs160 | Return 11%
Puravankara Projects traded on uptrend trajectory for most of the session despite a marginal consolidation on certain levels.
Although trading on flat momentum during the early weekday’s session, the stock witnessed a strong volume growth towards the last trading session to register 52-week high at 182 levels but fail to sustain.
However, it managed to close the session with 5.07 percent gain on an intraday basis. On the weekly price chart, the stock formed a strong bullish candlestick pattern coupled with its secondary momentum indicating a strong support for the uptrend.
The scrip also witnessed a crucial bullish crossover indicated by MACD which signals a positive trend. With price trading above all the levels in the current session, a major support for the scrip is placed at 151 levels and resistance level at 182.
We have a BUY recommendation for Puravankara which is currently trading at Rs. 176.20
JK Paper Ltd: BUY | Target Rs155 | Stop-loss Rs135 |Return 8%
JK Paper witnessed a strong bullish reversal trend after consolidating at higher support level placed near 117 and continued to trade on uptrend trajectory.
Despite trading on muted movement during early session, the price-trend bounced on bullish front coupled with volume support towards the weekend and gained about 10 percent on weekly basis.
On the daily price chart, the scrip formed a bullish engulfing kind of candlestick pattern suggesting a possible up move in the upcoming session. Further, the RSI at 60s levels indicates a favorable buying price zone for bulls coupled with positive MACD at 5.42 still intact above its Signal Line.
With the current price trading above all moving average levels, a major support for the scrip is seen at Rs133 and resistance level is placed at Rs159. We have a BUY recommendation for JK Paper which is currently trading at Rs143.85
Bombay Rayon Fashions: SELL| Target Rs145 | Stop-loss Rs160 | Return 5%
Bombay Rayon continued to face headwinds on its daily price movement after registering 52-week high and witnessed a continued free fall to trade at lower level thereafter.
Despite witnessing the up move it failed to sustain and remained under pressure with negative outlook coupled with lower volume support.
On the weekly price chart, it formed a strong bearish candlestick pattern which is expected to keep the stock under pressure without any major breakout in short-term.
Further, the price is currently below all the moving average level coupled with bearish crossover on its momentum indicator, thus indicating a continued negative outlook going forward.
The stock is facing resistance at 168 levels while the support level is seen at 140. We have a SELL recommendation for Bombay Rayon which is currently trading at Rs. 152
Dilip Buildcon Ltd: BUY| Target Rs1044 | Stop-loss Rs. 978 | Return 5%
Dilip Buildcon witnessed a healthy consolidation at 880-911 levels during the start of the month giving a bearish outlook after rallying at a higher level. However, during the current session, the stock retraced from its crucial support level placed near 973 and gave a bullish reversal trend with 9.56 percent gain on weekly basis.
After closing the last session with 7% gain, the stock formed a bullish candlestick pattern, indicating a bullish reversal trend in its daily price chart.
The momentum indicator with RSI level at 69 further suggests a strong support for bullish uptrend coupled with MACD indicating a bullish crossover just happening at current regime.
Currently, the scrip is facing an immediate resistance from its 52-weeks high at 1008 levels followed by 1210 and major support will be seen at 933 levels. We have a BUY recommendation for Dilip Buildcon which is currently trading at Rs. 993.85.
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