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Nifty likely to move towards 10,130; 4 stocks which can give up to 15% return

It still expects the rally to extend further up to 10,350 which is an upper band of the channel. On the other hand, markets are trading in overbought zone, so we may see some correction in the near term.

The Nifty hit a record high at 10,025.95 for the first time in history and closed above its psychological level of 10,000 on Wednesday session. INTRADAY FREE TRAILS TIPS

If we look at monthly chart index, it is trading in a rising channel pattern and we have got the first breakout above 9,120 in March 2017 from there we have seen a straight rally up to 10,000.

We still expects the rally to extend further up to 10,350 which is an upper band of the channel. On the other hand, markets are trading in overbought zone, so we may see some correction in the near term.

On derivative hands, highest open interest (OI) seen in 10,000 CE followed by 10100 CE and 9900 PE even Nifty rollover data suggest strong rollover in the next month.

Currently, it seems at 44.93 percent this F&O setup indicates index to expire July contract on the higher side between 9950-10070 mark.

We believe holding 9,900 level, the index has the potential to trade on a positive note and we may see next move up to 10,0070-10,130.

For traders, we recommend every dip can be used to make fresh long in the index by keeping a stop out level below 9,900 on a closing basis.

Here is a list of four stocks which can give up to 15 percent return in the short term:

Ramco System: BUY | Target Rs 510 | Stop Loss Rs 400 | Upside 15%

The stock cached the momentum recently and we have seen a quick up move in the stock from Rs350 to Rs440 levels. Technically, the stock has given a double bottom breakout on short to long term charts with decent volume.

On the daily charts, the stock has already surpassed above all the strong DMA’s like 200-100 etc., suggesting current momentum in the stock will take it further towards Rs480 levels on an immediate basis.

On the weekly charts, we have witnessed very good volume activity suggesting a bottom is formed and the stock is all set to fly high.

Bonanza recommends a buy on stock at current levels to any dip near Rs425 for the targets of Rs480 and then further towards Rs510 with keeping a stop loss below Rs400 on a closing basis.

Equitas Holding: BUY Above 172 | Target Rs 190 | Stop Loss Rs 161| Upside 10%

The stock has not performed in the past but the current stock structure looks very attractive. Recently, the stock has given decisive double bottom breakout above 163 levels with huge volume.

If we look at current chart setup it seems after giving strong breakout, the stock is forming bullish flag which will get active above 172 levels.

We expect a breakout to happen in the coming sessions as the stock is already active in price moment and the next hurdle for the stock is around Rs190 which acted as strong resistance historically.

One needs to wait till the time price break above Rs172 level, then we may expect Rs190 as an immediate target and keep a stop loss below Rs161 on a closing basis.

V-Guard: BUY| Target Rs 205| Stop Loss Rs 177 | Upside 9%

The stock rose one way from Rs120 to Rs220 and from there it has given time wise correction and took pause at 38.20% retracement support from December low.

Currently, stock trading in sideways trend and on Wednesday session stock has given small price breakout with good volume hinting stock likely to go higher from current levels.

The momentum indicator RSI currently reading at 59.50 which is again bullish zone & Stock also managing itself above all strong DMA’s like 200-100 suggesting strength.

Bonanza recommends a buy on the counter for the target of Rs205 with keeping stop out level below Rs177 on a closing basis.

Century Plyboards : BUY | Target Rs 360| Stop Loss Rs 280| Upside 10%

The stock has given strong consolidation breakout on weekly chart in early June and reacted technically, again stock is ready to break its bullish flag pattern as we have witnessed some good buying activity in counter.

The stock is trading in a strong uptrend and we have seen that stock rose after giving consolidation breakout every time.

Century has given one more small consolidation breakout on Wednesday session with strong volume hinting stock ready to follow its overall trend again. The immediate resistance in counter stands at 314 above same we may see a quick move up to 330 levels.

One can initiate a buy on the counter for the targets of Rs330 in the near term with keeping a stop loss below Rs280 on a closing basis.

Disclaimer: The author is Senior Research Analyst, Bonanza Portfolio Ltd. The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
www.shristocktips.com

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A close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

The Nifty index Futures continued to slide lower for the second month in a row making it 10 percent decline from the record highs. Further, it has broken down from a broadening wedge pattern along with a close below the 200-DMA, affirming weakness dominant in the markets at the moment.

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