Wednesday, 7 March 2018

Selling pressure may drag Nifty to 10,100; 3 stocks which could give up to 17% return

The overall data is still running negative for the markets and we can see further selling pressure coming into the market which can drag Nifty towards 10100 levels in coming sessions.

  

The Nifty 50 index hammered down badly after breaching the crucial support of 10,400 levels this week. The fall was majorly supported by banks after investigation deepened in the PNB fraud case.
Since the beginning of the series, we have seen call writers actively selling calls of 10500-10600 and 10700 strikes which clearly indicates discomfort in the market.
The derivative data indicates that selling pressure on higher levels may remain intact with Nifty having major resistance now placed at 10,400 and 10,500 levels.
As far Bank Nifty is concerned the next support is placed at 24,200 spot while resistance is placed at 24,700 and 24,800 levels.
The overall data is still running negative for the markets and we can see further selling pressure coming into the market which can drag Nifty towards 10,100 levels in coming sessions.
Here is a list of top three stock ideas which can give up to 17% return:
Bharat Bijlee Limited: BUY| Target Rs 1870| Stop Loss Rs 1480| Return 14%
After taking a support at its 100-days exponential moving average (DEMA) on the daily charts, the stock has risen sharply in the recent past to reclaim the levels above its short-term moving averages.
On the daily interval, the stock has formed an inverted head and shoulder formation and has also given a pattern breakout above the neckline last week.
The breakout in prices happened with marginally higher volumes which suggest for more upside in prices moving forward. Traders can accumulate the stock in a range of 1630-1660 levels for the target of 1870 with a stop loss below 1480.
V-Mart Retail Limited: BUY| Target Rs 2110| Stop Loss Rs 1625| Return 17%
The stock has been consistently trading higher and has been forming higher highs and higher lows on the daily and weekly interval charts.
At the current juncture, the stock has formed an inverted head and shoulder formation on the daily charts and also given a pattern breakout above the neckline placed at 1700 levels.
Additionally, positive divergences in the secondary indicators like stochastic and RSI also support the next up move in prices. So, traders can accumulate the stock in the range of 1800-1835 for the upside target of 2110 with a stop loss below 1625.
Gujarat Ambuja Exports Limited: BUY| Target Rs 306| Stop Loss Rs 250| Return 13%
The stock has been trading higher on the daily charts since the beginning of 2018 and tested its 52-week high last week. Additionally, the stock has formed a bullish flag formation on the weekly interval and given breakout above the pattern last week.
This week prices have retraced toward 260 levels on the back of profit booking. However, any break above the 270 levels will once again support the next upside move in prices as suggested by momentum indicators.
Traders can buy the stock above 270 levels for the upside target of 306 with a stop loss below 250.
MORE WILL UPDATE SOON!!

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