With volatility regime ahead of F&O expiry and earnings season coupled with Budget session due next week, it will be prudent to approach cautiously on long position and maintain a strict stop-loss below 10,600 levels.
The Indian equity market continued to post record high levels in its price chart despite turning volatile on a certain session. Although the small and midcap indices remained sluggish during the last week’s trade, Nifty decisively managed to breach its crucial psychological level of 10,900. It failed to sustain and closed marginal below at 10,894 on a closing basis.
On its price chart, the index formed a strong bullish candlestick pattern after breaking above the upper band in trend channel, indicating a positive signal in the upcoming session.
Further, the secondary momentum indicator suggested a strong support with RSI at 72 coupled in MACD at 121 above Signal Line.
Based on Fibonacci Retracement, the index is trading above all the levels with index getting immediate support at 10,650 level and immediate resistance level at 10,906 followed by 10,930 levels.
With volatility regime ahead of F&O expiry and earnings season coupled with Budget session due next week, it will be prudent to approach cautiously on long position and maintain a strict stop-loss below 10,600 levels.
Further, the market may witness a profit booking from a higher level to keep index under pressure and any short-term consolidation to be used as buying opportunity with upside price band at 10,980.
Here is a list of top 4 stocks which could give up to 10% return:
Prakash Industries Ltd: BUY| Target Rs 267 | Stop-loss Rs 230 | Return 10%
Prakash industries witnessed a healthy consolidation at 140 levels during the past month and since then it rebounded back to higher level in its daily price chart and continued to trade on a positive trajectory.
Despite witnessing a marginal consolidation from its 52-weeks high level placed at 276, the scrip recouped higher on the backdrop of volume support.
After closing the last session with 3% gain, the stock has formed a bullish candlestick pattern in its daily price chart coupled with strong support from secondary momentum indicator inclined towards uptrend trajectory.
Currently, the scrip is facing an immediate resistance from its 52-weeks high at 276 levels followed by 193 and major support will be seen at 213 levels. We have a BUY recommendation for Prakash Industries which is currently trading at Rs. 242.30
Balrampur Chini Mills Ltd: SELL | Target Rs 113 | Stop-loss Rs 135 | Return 9%
Balrampur Chini continued to face headwinds in its daily price movement after clocking to 52-weeks high at 182 level in past month and traded on a negative trajectory to close at 122 level, which is just one point above its 52-weeks low.
Further, it witnessed considerable short position on volume which further aided the negative outlook. On the weekly price chart, it continued to form a strong bearish candlestick pattern which is expected to keep the stock under pressure.
Further, the price is currently heading below its crucial level coupled with bearish crossover on its momentum indicator just happening last Thursday.
The stock is facing its resistance at 138 level while the support level at 105 will remain crucial for scrip. We have a SELL recommendation for Balrampur Chini which is currently trading at Rs. 122.70
GRUH Finance Ltd: BUY| Target R s725 | Stop-loss Rs 669 | Return 6%
Despite a flat trading during the initial session, GRUH Finance managed to breakout from upper band price channel and the end the session on positive momentum with over 15 percent gain on an intraday basis.
It also witnessed a similar support from volume context during the same period and end the session on a higher level at 687 on a closing basis.
On the daily price chart, the scrip formed a strong bullish candlestick pattern suggesting a possible uptrend following the last week’s momentum. Further, the RSI at 70 levels indicates a buying action at level coupled with positive MACD at 13.1 still intact above its Signal Line.
With current price trading above all moving average levels, a major support for the scrip is seen at 604 and resistance level at 783 upper band. We have a BUY recommendation for GRUH Finance which is currently trading at Rs. 687.80
Biocon Ltd: BUY| Target Rs. 596 | Stop-loss Rs 552 | Return 5 %
Biocon traded on uptrend trajectory after rebounding back from its lower level at 318 and continued to trade upward in its long-term price chart registering peak.
In the last trading session, the scrip witnessed a crucial breakout from its resistance level which was placed at 566 level, and thus indicated a positive momentum build up in its price chart.
With considerable growth in volume parallel to price movement during last week, the scrip formed a solid bullish candlestick pattern on its weekly price chart.
Further, a secondary momentum indicator continued to trade a positive level coupled with bullish crossover happening soon at the current level.
With price trading above all the levels in the last session, a major support for the scrip is placed at 539 levels and resistance level at 575 followed by 602 level. We have a BUY recommendation for Biocon which is currently trading at Rs. 569.3
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