Wednesday, 21 February 2018

March series seeing short rollovers; 3 stocks which could give up to 17% return

Short rollover to March series could lead to further selling pressure and long unwinding in coming trading sessions.


Since the inception of February series continuously we have seen selling by foreign institutional investors (FIIs) at higher levels which clearly indicates short buildup and discomfort in the market.
The initial rollover data towards March series also indicates a short rollover. In the expiry week, we have seen aggressive call writing in 10400 and 10500 call strike which indicates that current expiry is likely to close below 10400 levels.
Moreover, short rollover to March series could lead to further selling pressure and long unwinding in coming trading sessions.
The overall data has turned negative and more weakness can be seen moving forward. On technical front, next support is placed around 10200- 10220 levels for the Nifty
Here is a list of top three stocks which could give up to 17% return:
IZMO: BUY| Target Rs 127| Stop Loss Rs 98| Return 17%
The stock is consistently moving up in a rising channel on daily and weekly interval along with supportive volumes on every dip. This week profit booking has been seen in the stock as prices have retraced back towards its short-term moving averages once again.
On a shorter time frame stock has formed double bottom around 99 levels and bounce thereon. Now any move above 108 levels will confirm the next upside in prices moving forward. So, traders can buy the stock above 108 levels for the target of 127 with a stop loss below 98.
HCL Infosystem Limited: BUY| Target Rs 71.50| Stop Loss Rs 55| Return 17%
The stock has formed a cup and handle formation on daily charts and given breakout above the pattern formation last week to test 69 levels. This week once again prices have retraced back towards its breakout levels near 61 and took support at its short-term moving average.
At the current juncture, the positive divergence on secondary indicators like stochastic and Rsi suggest for next up move in prices. So, traders can accumulate the stock in a range of 60-62 for the upside target of 71.50 with a stop loss below 55.
TVS Srichakra Limited: BUY| Target Rs 4200| Stop Loss Rs 3350| Return 15%
If we look at broader picture stock has been continuously trading down from 4300 levels and tested its 100 days exponential moving average on a weekly interval.
Thereon stock has formed a cup and handle formation on weekly charts and given fresh breakout above the pattern formation to once again hold above its short-term moving averages.
Traders can accumulate the stock in a range of 3750-3650 for the upside target of 4200 with a stop loss below 3350.
MORE WILL UPDATE SOON!!

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