Wednesday, 3 January 2018

Nifty likely to head towards 10650-10700; 5 stocks which can give up to 19% return

On the technical grounds as far we are maintaining above 10200 spot levels current trend is likely to continue towards 10650-10700 moving forward.


Overall derivative data indicates long rollover to January series. Derivative data indicates bullish scenario to continue with Nifty having multiple strong supports at 10,400 and 10,300 spot levels.
We might witness short covering on every dip. In the January option contracts, we are seeing options open interest (OI) building up in 10300 and 10400 puts.
On the higher band, 11000 calls strike to hold the maximum open interest with more than 44 lakh shares. From the option data, we have been seeing a shifting of the range towards upper band which reflects that market undertone is likely to remain bullish with the support of consistent FII buying and short covering.
Overall market’s cost-of-carry is up on the back of fresh long additions. Among put options, 10300-strike put has the highest open interest of over 50 lakh shares.
On the technical grounds as far we are maintaining above 10200 spot levels current trend is likely to continue towards 10650-10700 moving forward.
Here is a list of top 5 stocks which can give up to 19% return in the short term:
Tata Power Company Limited: BUY| Target Rs111| Stop Loss Rs91| Return 13%
The stock has been trading in a rising channel on the daily and the weekly charts. However, from the last six weeks, the stock has been consolidating in the range of Rs88-96 amid which it has formed rectangle formation.
In Tuesday’s session, it witnessed fresh breakout in prices above the pattern formation along with heavy volumes which is a bullish sign.
The formation is generally traded as continuation pattern of the previous trend. Traders can accumulate the stock in a range of Rs98-99 for the target of Rs111 with a stop loss below Rs91.
Shivam Autotech Limited: BUY| Target Rs112| Stop Loss Rs91| Return 13%
The stock has given a breakout above Rs75 levels in the recent past and has also tested Rs105 levels in a short span of time.
However, since then due to profit booking, the stock has retraced back towards its 50-days exponential moving average (DEMA) and took support around Rs85 levels.
On the weekly interval, the stock has formed a bullish flag formation and has also given a break above the pattern formation this week.
Traders can accumulate the stock in a range of Rs99-101 for the upside target of Rs112 with a stop loss below Rs91.
Shree Pushkar Chemicals & Fertilisers Limited: BUY| Target Rs350| Stop Loss Rs265| Return 19%
The stock has been consolidating in the range of Rs250-280 from almost last two months and formed an ascending triangle formation on the weekly charts.
Additionally, it has formed an inverted head and shoulder formation on the daily charts. This week, prices have given a breakout above both the formation with marginally higher volumes.
Traders can accumulate the stock in a range of Rs294-298 for the target of Rs350 with a stop loss below Rs265.
Dish TV India Limited: BUY| Target Rs95| Stop Loss Rs78| Return 13%
On the daily charts, the stock has been consolidating in the range of Rs78-84 and holding well above its 50 and 100-days exponential moving average.
In Tuesday’s session, the stock witnessed a fresh breakout above the 200-days exponential moving average (DEMA) along with hefty volumes.
Moreover, on the weekly charts, the stock has formed the inverted head and shoulder formation and also given breakout above the neckline of the pattern formation.
Traders can accumulate the stock in a range of 84-86 for the target of 95 with a stop loss below 78.
Chambal Fertilizers & Chemicals Limited: BUY| Target Rs176| Stop Loss Rs143| Return 13%
The stock has been consolidating in a narrow range of Rs135-150 from the last three months and this week, the stock gave a breakout above the key resistance level of Rs150 with relatively larger volumes.
Additionally, the positive divergence on RSI and stochastic indicators on the daily charts also support the next up move in prices in the coming sessions.
Traders can accumulate the stock in a range of Rs155-157 for the target of Rs176 with a stop loss below Rs143.

MORE WILL UPDATE SOON!!

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