The strong reversal trend in the Nifty index from the last two trading sessions translates to a possible breakout from its short-term hurdles placed at 10,350 level and likely to trade near 10,400 level if its holds above 10,350 level.
The Nifty index witnessed a strong comeback after trading near its crucial support level placed at 10,040 zone and managed to close above its critical 20 & 50-days EMA level.
On the daily price chart, it made a strong bullish candlestick pattern coupled with index closing above its 20 & 50-day EMA indicating a shift in sentiment.
Further, the secondary momentum indicator suggests an uptick in trend with relative strength index (RSI) entering buy zone coupled with continued uptrend momentum depicted in the trend line.
Based on the Fibonacci retracement, a major support is seen at 10,183 level followed by 10,089 level and immediate resistance will be seen at 10,350 level.
The strong reversal trend in the Nifty index from the last two trading sessions translates to a possible breakout from its short-term hurdles placed at 10,350 level and likely to trade near 10,400 level if its holds above 10,350 level.
However, it may also witness a weak support for the uptrend if it fails to close above this trend line.
Here is a list of top 4 stocks which could give up to 10% return in the short term:
Kesoram Industries: BUY| Target Rs 163| Stop-loss Rs 137 | Return 10%
Kesoram Industries witnessed a major breakout during the last week’s trade after facing consolidations near Rs119-123 level. But, the price action gave a positive outlook on the weekly chart despite closing lower from the previous level.
The strong sentiment prevailed as it witnessed a major volume breakout which enabled the stock to rally. On charts, Kesoram formed a “cup & handle” kind of a candlestick pattern along with its bullish trend pattern in its daily price chart.
Further, the secondary momentum indicator suggested a similar support for the scrip with price trading above all the level at current regime.
The MACD at 4.69 also suggests strong support for the rally with bullish crossover. Based on Fibonacci Retracement, the stock is facing a resistance at the Rs174 level and support level at Rs136.
We have a BUY recommendation for Kesoram Industries which is currently trading at Rs. 148.35
Graphite India: BUY| Target Rs 684 | Stop-loss Rs 634 | Return 4%
Graphite India witnessed a strong bullish reversal trend after consolidating at a crucial support level placed at the Rs540-555 level and continued with uptrend trajectory.
Despite witnessing a negative outlook last week, it witnessed a major breakout from higher circuit towards the weekend session. The breakout was coupled with volume support along the trend-line. The stock gained about 12 percent on the weekly basis.
On the daily price chart, the stock formed a bullish trend as it ended the weekend session on positive cues. Following a momentum indicator, which supports bullish uptrend with an increase in RSI at 67 level coupled with MACD at 19.8 showing signs of crossover from its signal-line.
Further, the stock managed to close above its 20 & 50-days EMA, and thus strengthening the positive sentiment in forward-looking session.
The stock is currently facing upper-resistance at 808-level and immediate support at 598-level. We have a BUY recommendation for Graphite India which is currently trading at Rs. 659.70
West Coast Paper Mills: BUY| Target Rs299 | Stop-loss: - Rs. 268 | Return 4%
West Coast Paper witnessed a strong uptrend momentum forming peaks on its long-term chart despite a flat movement during the initial trading session. It was further aided by growth in volumes along with its upward movement and gained about 15 percent on an intraday basis.
The scrip formed a strong bullish candlestick-pattern on its weekly price chart and continued to trade laterally on 60-degree trend line touching an upper band which indicates a positive signal.
The secondary momentum indicator further suggested a strong support for an uptrend regime with incremental in its RSI level from the previous zone along with MACD still continuing above Signal Line.
The stock is currently facing a resistance at 310 level and support level at 256. We have a BUY recommendation for West Coast Paper Mills which is currently trading at Rs. 287.20
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