The Nifty hit a fresh record high on Monday and rallied climbed 11,400 for the first time in history and experts feel that the momentum is likely to continue this week as well. The index closed with gains of nearly a percent for the week ended August 3.
The index witnessed value buying on Friday after consolidating for two days last week. Last week, the index was able to reclaim 11,350 on a closing basis. Also, the action was spread across small and midcaps.
After a strong rally seen in July, some would say that markets are looking overbought at current levels but analysts feel the momentum is likely to continue.
The structure is still strong. Some of the previous laggards have started to participate like ICICI Bank, Axis Bank and public sector banks. The midcap index is probably showing signs of forming a base.
The anticipation has now turned into a confirmation. We believe there is still a lot more to offer in days to come. Friday’s strong rally is the perfect example why one should refrain shorting this market at this juncture and rather capitalise such declines to buy into.
Nifty is likely to move towards 11,430-11,500. "Since it’s an uncharted territory, further legs will keep unfolding as we move forward. For the forthcoming week, 11,290 followed by 11,234 would be seen as immediate support.
Here is a list of top 10 moneymaking ideas from different experts that could return 6-12% in the next 1 month:
Arvind Ltd: Buy| LTP: Rs 419| Target: Rs 469| Stop Loss: Rs 401.70| Return 12%
During the penultimate week, the stock price finally came out of its congestion zone which in technical terms can be interpreted as a breakout from the ‘Triangle’ pattern.
The breakout was accompanied by higher than average daily volumes, providing credence to the breakout. However, due to lack of follow up buying, the stock corrected a bit towards the trend line support placed around Rs 412.
As expected, the strong buying emerged at lower levels, which validates this corrective move as a pullback move and the stock would now possibly start a fresh leg of the rally. We recommend investors to buy the stock for an upside target of Rs.469 and a stop loss placed at Rs.401.70.
Bombay Burmah Trading Ltd: Buy| LTP: Rs 1614.70| Target: Rs 1810| Stop Loss: Rs 1509| Return 12%
This stock has undergone some decent time correction over the past three months. Recently, there were a couple of attempts made to break through this congestion zone in the upward direction; but all turned unsuccessful.
However, the bulls did not lose their hope; in fact, they came back strongly on Friday and provided enough force to confirm a decisive breakout above the sturdy wall of Rs 1,582.
With this, the weekly charts are now looking extremely promising. Thus, looking at the rising slope of ‘RSI-Smoothened’, we expect the stock to do well in days to come.
One can look to go long for a positional target of Rs.1810 in coming weeks. The stop loss needs to be fixed at Rs.1,509.
Bata India: Buy| LTP: Rs 938| Target: Rs 1020| Stop Loss: Rs 900| Return 8.7%
After hitting lifetime highs this counter appears to be on the verge of a fresh breakout above its two-month-old ascending channel. Such a breakout will throw up a new target placed around Rs 1,020 levels.
Hence, positional traders should buy now and can add further on declines around 920 and look for a target of Rs 1,020. A stop loss could be placed near Rs 900.
Havells India : Buy| LTP: Rs 641| Target: Rs 697| Stop Loss: Rs 620| Target: Rs 8.7%
This counter registered a breakout above its three-month-old ascending channel with a new lifetime high which is throwing up a bigger target placed around Rs 730.
Interestingly, this kind of breakout on this counter occurred after a multi-month struggle inside the broader range of 590 – 480 kind of levels.
Hence, such a bigger target can’t be ruled out going forward. Positional traders are advised to buy now and on declines up to Rs 625 and look for a target of 697 by placing a stop below 620 on a closing basis.
Yes Bank: Buy| LTP: Rs 372| Target: Rs 390| Stop Loss: Rs 360| Return 4.8%
After the recent correction from the lifetime highs of Rs 394, this counter appears to have bottomed out at the recent low of Rs 356 and resumed its up move.
As the long-term trend is buoyant in this counter it can be expected to retest its lifetime highs. Hence, positional traders should buy into this counter for a target of 390 with a stop of 360.
JK Paper Ltd: Buy | Target: Rs. 167| Stop-loss: Rs. 135 | Return: 10%
JK Paper remained under a consolidation phase in last six-month from a price band of Rs 149-128, taking a strong support at Rs 99 levels, and made a robust rebound from this level recently.
It also made a crucial breakout from the moving average of 200-days EMA placed at Rs 131, thus indicating a reversal trend. The scrip also witnessed a significant volume growth managing to gain about 25 percent on weekly basis.
On the weekly price chart, the scrip registered a solid bullish candlestick pattern indicating a reversal in trend favoring upward momentum.
Further, the weekly RSI at 60 signaled a buying regime at a current level along with positive cues from MACD suggesting an upward shift.
The scrip is currently holding a resistance at Rs 169 and the immediate support level is placed at Rs 126. We have a buy recommendation for JK Paper which is currently trading at Rs. 151.25
Sical Logistics Ltd: Buy | Target: Rs. 203| Stop-loss: Rs. 174| Return: 8%
Sical Logistics formed a reversal trend favoring upward momentum after consolidating on multiple price level from Rs 232-194 towards Rs 163 levels in the last six months.
Although it remained flat during an early trade of the week, it gained strong momentum towards the weekend to close above 200-days EMA placed at Rs 182 levels.
It also witnessed a substantial support from volume buildup as compared to average level. The positive breakout on the weekly basis aided the scrip to form a strong bullish candlestick pattern indicating a sustained trend at the current level.
The weekly RSI trend registered an upward momentum at 64 suggesting a buying regime along with MACD trading on a bullish momentum.
The scrip has a support at Rs 164 levels and medium-term resistance level at Rs 216. We have a buy recommendation for Sical Logistics which is currently trading at Rs. 188.25
Redington (India) Ltd: Sell | Target: Rs. 98 | Stop-loss: Rs. 115 | Return: 6%
Redington India Ltd continued to consolidate on its long-term price chart, slipping below a price band of 158 levels to form multiple low levels over sustain selling pressure.
Last week the scrip slipped below a long-term moving average level to touch 52-weeks low and thus indicating a sustained pressure on selling regime. Further, the volume support continued to remain subdued over a negative trajectory.
The price chart continued to indicate consolidation phase with a formation of bearish candlestick pattern on its weekly price chart post-breach below important average level.
Further, the secondary momentum trend continued to indicate negative signal with RSI slipping below at 34 coupled with bearish outlook from MACD trend.
The scrip is facing a resistance at 128 levels and crucial support at 95 levels. We have a sell recommendation for Redington India which is currently trading at Rs. 104.20.
APL Apollo Tubes Ltd: Buy| CMP: Rs 1,699.25| Target: Rs. 1,900| Stop Loss: Rs. 1,597| Return: 12%
The stock, which was consolidating for the last several days, has come out with a closing above its recent range high indicating a growing optimism in the stock. Price has closed significantly above 21 EMA for the first time since last May.
Moreover, positive divergence in the daily RSI (14) may induce bullishness in the stock. Overall, the technical set is suggesting a decent recovery on the stock.
ZEE Ltd: CMP: Rs 520.60| Buy| Target: Rs. 573| Stop Loss: Rs. 498| Return: 10%
After a steep correction, the stock has been consolidating around the support of a rising trendline on the daily chart. In addition to that, on the weekly chart, a Bullish Harami candlestick pattern is formed which may propel a rally in the stock.
The stock is in a long-term uptrend and is currently trading around the lower band of the rising channel; we expect demand in stock may return over the short-term.
MORE WILL UPDATE SOON!!
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