Budget 2018: Union Budget to keep market volatile; 3 stocks which can give up to 24% return

Here is a list of stocks which can give up to 24% return in 15-21 sessions:

  

During the last week, the benchmark indices hit another milestone as Nifty & Sensex registered a fresh all-time high of 11,110.10 & 36,268.19 levels respectively in Wednesday’s trading session.

However, in Thursday's session, traders decided to take some money off the table on the back of F&O expiry and the crucial event i.e. Union Budget.

Looking at the overall chart structure, Nifty had confirmed its breakout from a Rising Channel formation and resultant indices saw a sharp rally in past few weeks.

Now, the weekly RSI (14) has signaled medium term bearish divergence. Also, the 161.8% price extension of its entire move from the bottom of 850 to the top of 6357 which added to the bottom of 2253 comes near 11163.

The Brent Crude Oil crossed 70 marks and the Bond yield has started inching higher. In such scenarios, we advise traders to stay light with the position as the volatility likely to increase ahead of Union Budget.

On the index front, 10900 will act as an immediate support and any move below this level will pull index further lower towards 10780 / 10665 levels respectively.

Here is a list of stocks which can give up to 24% return in 15-21 sessions:

LIC Housing Finance: Buy at CMP 559| Target Rs627| Stop loss Rs535| Timeframe 15 to 21 sessions| Return 12%

Looking at the daily chart, the stock has formed a strong base near 540 – 535 zone and due to recent consolidation stock formed inverse head & shoulder pattern on daily chart.

The daily RSI (14) has signaled a probable range shift. Hence, we recommend traders to buy this stock at current level off Rs565 with a price target of Rs627. A Stop loss should be placed at Rs535 on a daily closing basis.

Motherson Sumi Systems Ltd: Sell around Rs370 – 375| Target Rs340| Stop loss Rs389| Time frame 15 to 21 trading sessions| Return 8%

Looking at the daily chart, the stock has been in a long-protracted uptrend since past several months and in that optimism, the stock hit a fresh all-time high of around Rs396.

Subsequently, stock saw mild profit booking which was followed by consolidation. As a result, the stock is forming a triangle pattern. The daily RSI (14) is struggling to cross 60 levels which doesn’t bode well for bulls.

Also, we are observing three-point bearish divergences on the weekly chart. Hence, we advocate traders to go short in this stock around Rs370-375 with a price target of Rs340 and a stop loss placed above Rs389.

Suven Life Sciences: Buy above Rs223| Target Rs268| Stop loss Rs196| Time frame 15 to 21 trading session| Return 24%

Looking at the weekly chart, the stock has confirmed its breakout from downward sloping trend line during mid-October 2017 which triggered a fresh buying interest.

In that optimism, the stock rallied towards 230. Subsequently, stock witnessed profit booking which led to gradual correction followed by consolidation.

Now, the daily chart has formed a Bullish Cup & handle pattern and the formation of handle formation is in process. The said pattern will be confirmed once stock breaches the Rs223 levels.

In that case, we expect an acceleration of bullish momentum and stock likely to rally towards Rs 268. A stop loss should be placed below Rs 196.

MORE WILL UPDATE SOON!!