Fresh breakout may take Nifty to 10,900; 2 stocks which could give up to 15% return

The projections indicate that Nifty is all set to fire up towards the 10,850-10,900 zone. While any decline towards the 10,575 mark should be a healthy opportunity to re-enter which is the crucial near-term support for the Nifty.

The New Year cheer extended to the second consecutive week in a row in the year 2018 as the benchmark indices once again closed at fresh lifetime highs. We may call it a pre-Budget rally or positive global wave but what is evident is that the momentum continues to persist.

For the past few days, the Nifty50 has been trying to digest the rally from 10,400 to 10,600 in the previous week. These are healthy signs as even when the index is consolidating it is managing to hit fresh highs.

What’s more intriguing is that the weekly chart is pointing out at another fresh breakout. The projections indicate that Nifty is all set to fire up towards the 10,850-10,900 zone.

While any decline towards the 10,575 mark should be a healthy opportunity to re-enter which is the crucial near-term support for the Nifty.

Bank Nifty, on the other hand, is the pain point at the current juncture. The index did manage to break out a fresh from a Symmetrical Triangle pattern.

Now, the current price behaviour shows that the breakout may turn out to be a false one. However, as long as Bank Nifty holds above the rising trendline support zone of 25,400 long positions can be held on to.

Here is a list of top two stocks which could give up to 10-15% return in short term:

Tata Chemicals: Target Rs845| Stop Loss Rs737| Returns 10%

Tata Chemicals has been consolidating for the past ten weeks and has finally broken out from a classic continuation pattern on the weekly chart.

The price breakout has also been accompanied with a smart uptick in traded volumes. With the previous trend being a solid uptrend, we expect the stock to resume and extend the momentum further.

Other momentum oscillators along with relative strength also indicate that the current up move is here to stay. We expect Tata Chemicals to rally higher towards its potential target of Rs 845.

Delta Corp: Target Rs 363| Stop Loss Rs 298| Returns 14%

Delta Corp has been consolidating for the past twelve trading sessions and has finally broken out from a sideways phase. The stock has formed a bullish engulfing pattern on the daily chart with a large uptick in traded volumes.

Our weekly chart analysis indicates that Delta Corp is on the verge of a Flag pattern breakout. Projections indicate that stock can rally towards its potential medium-term target of Rs 363. Stop loss should be kept at Rs 298.

MORE WILL UPDATE SOON!!