Overall, we expect Nifty to trade in a broad range of 10,000-10,400 levels where any pullback towards 10,350-10,400 can be used to exit from trading longs and initiating fresh shorts.
The Nifty has formed a downward sloping channel formation on a daily chart and recently it saw sharp reversal from the upper band of the channel formation. Looking at the daily chart, we are seeing lower highs & lower lows on Nifty as well as on the daily RSI (14) momentum indicator.
At this juncture, the index is finding support near the 61.8 percent retracement of its entire move from the bottom of 10,033 to the top of 10,329 which is likely to be taken out in a coming trading session as we are expecting a range shift on a daily chart.
Going forward, we maintained our sideways to bearish view on the index and expect Nifty to correct towards 10,050-10,000 level; hence, positional traders are advised to use any meaningful bounce if any,
On the higher side, 10,330 / 10,407 zone has a cluster of resistance and as long as the index is trading below this zone our view will remain cautious in the near term.
If we analyse option data than that also indicates the same broad range for Nifty. On lower side maximum put writing at 10,000 strike option will act as strong support zone whereas call writing at 10,400-10,500 strike options continued to be a supply zone for this series.
Overall, we expect Nifty to trade in a broad range of 10,000-10,400 levels where any pullback towards 10,350-10,400 can be used to exit from trading longs and initiating fresh shorts.
Here is a list of top 4 stocks which can give up to 18% return in 15-21 sessions:
Sun Pharma: BUY around Rs514| Target Rs610| Stop loss Rs460| Time frame 15 to 21 sessions| Return 18%
Looking at the daily chart, we are seeing a formation of a Bullish divergence and the impact of said pattern was seen last week when the stock rebounded sharply towards Rs572.
Subsequently, the bears tried to pull the stock lower but it bounced back from the support near 50% retracement of its entire swing move. The daily RSI (14) also found support near 40 levels.
Hence, we expect this stock to see a decent up move in the coming week and therefore we recommend traders to buy this stock at the current level of Rs514 with a price target of Rs610. A Stop loss should be placed below Rs460.
ONGC: BUY around Rs185 – 182| Target Rs205| Stop loss Rs175| Time frame 15 to 21 trading sessions| Return 10%
After taking a support near the daily 89-EMA, the stock witnessed a decent buying interest. On a daily chart, the RSI (14) took support near 40 and started heading northward.
On the daily chart, 9-45 EMA is still positive indicating the current trend is still up. Also, the rising crude oil price is a favorable for upstream companies.
Thus, we advocate traders to buy this stock in a range of Rs185 – 182 with a price target of Rs205. A stop loss should be placed near 175.
Can Fin Homes: SELL around Rs460 to 465| Target Rs410| Stop loss Rs481| Time frame 15 to 21 trading session| Return 10.8%
The stock has formed Lower Highs & Lower Lows on the daily charts. Recently, the stock saw a pullback from the low of Rs431 but saw strong resistance near the daily 45-EMA and formed a triangle pattern.
In Thursday’s trading session, stock confirmed its breakdown from triangle pattern. The 9-45 EMA on price is negative indicating the current trend is down.
Hence, we suggest traders to build a short position in Canfinhome around 460 /465 with a price target of 410 and stop loss placed above 481.
Indiabulls Housing Finance: SELL around Rs1190 – 1200| Target Rs1100| Stop loss Rs1230| Time frame 15 to 20 trading session| Return 7.5%
After witnessing a sharp rally, the stock breached the Higher Top Higher Bottom sequence on the daily chart and thereafter it is consolidating in a narrow range since past several days.
The 9-45 EMA has signaled negative crossover and with this stock also broke the rising trend line on daily chart. Looking at the placement of candlestick pattern on the daily chart, we expect further weakness in this counter hence one can take a short position in a range of 1190 – 1200 with a price target of 1100. Stop loss should be placed at 1230.
MORE WILL UPDATE SOON!!
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