Skip to main content

Profit Booking likely from 10,300-10,350; 4 stocks which are likely to give up to 17% return

In a coming week, Nifty has an immediate resistance near 10285 above which the next resistance comes near 10400.

Last week, Indian markets saw lethargic movements during the initial part of the week. However, bulls came into action during the second half of the week and drove the Nifty sharply higher to register a fresh all-time high of 10,191.90 and finally closed with weekly gains of 1.88 percent.

Due to a sharp surge in last week, the weekly bearish engulfing pattern formed on September 22, 2017, got void. Looking at the weekly chart, Nifty broke the upper band of its trading range and trade BSE Sensex went tad above its previous all-time high of 32,686.

However, the breakout of Nifty will be confirmed once the BSE Sensex too decisively crosses and sustains above its previous all-time high.

On a daily chart, the RSI (14) has confirmed its breakout from bearish divergence trend line.

In a coming week, Nifty has an immediate resistance near 10,285 above which the next resistance comes near 10,400.

On the flip side, 10,050 / 9,930 are the immediate support. Options data also indicate towards immediate resistance of 10,300-10,400 levels.

In last 2 trading session, fresh call writing was seen in both these strikes whereas on the lower side put writing at 10,200-10,100 strike option will act as strong support for indices in short term.

Here are the lists of 4 stocks which could return up to 17% in short-term:

ICICI Bank: BUY Around 271 – 268| Target 300| Stop Loss Rs255| Time frame 15 to 21 sessions| Return 10%

Looking at the weekly chart, stock corrected sharply after posting a high of 315. In that pessimism, stock registered a low of 264 during last week.

The level of 264 coincides with the previous resistance zone and last week stock rebound sharply from those levels. Also, the 61.8% retracement of its entire move from the bottom of 239 to 315 comes at 264 and last week stock precisely hit those levels.

The short-term momentum indicator on the weekly chart has entered inside the oversold territory. The Higher Top Higher Bottom formation on the weekly chart is still intact.

Thus, we recommend traders to buy this stock in a range of 271 to 268 with a price target of 300 and stop loss placed at 255.

Torrent Power: Buy Above 237| Target Rs285| Stop Loss Rs206.50| Time frame 15 to 21 trading sessions| Return 17%

Looking at the weekly chart, the stock has consolidated since past few months and formed a Symmetrical Triangle pattern.

During last week, the stock has seen the sharp rally and penetrated the upper band of the triangle pattern. The volume activity has also picked up which is a bullish indication.

The weekly RSI (14) once again entered inside the 60 levels. The daily 9-45 EMA is positive indicating that the current trend is up. Hence, we advocate traders to buy this stock above 237 with a price target of 285. A strict stop loss should be placed at 206.50.

Federal Bank: Buy Around 122.50 - 121, Target 140, Stop loss 115, Time frame 15 to 21 trading session| Return 12%

Looking at the daily chart, stock broadly consolidated in a range and formed an Inverse Head & Shoulder pattern on daily chart.

Yesterday, stock confirmed its breakout from said pattern and hit a fresh all-time high of 125.20. The said move was also supported by a rise in volume activity.

The weekly Bollinger Band which contracted sharply in past has started expanding indicates a shift in volatility.

Considering the above evidence, we recommend traders to buy this stock in a range of 122.50 to 121 with a price target of 140 and stop loss placed below 115.

Tata Motors DVR: Buy Around 243.50 – 242.50, Target 266, Stop loss 230, Time frame 15 to 20 trading session| Return 8%

Tata Motors DVR has formed an Ascending Triangle pattern and yesterday it confirmed its breakout by breaching the horizontal trend line resistance of 243.The daily RSI (14) has eventually entered inside the 60 levels.

On a monthly chart, the stock has surpassed its previous month candle which is a Doji pattern occurred near the lower band of its range. Short term traders can initiate long positions on dips with targets of Rs266 and stop loss of Rs230.

Disclaimer: The author is Head Technical Research, Way2Wealth Brokers Pvt. Ltd. The views and investment tips expressed by the investment expert on are his own and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.


Popular posts from this blog

Nifty could slip towards 9,900; 3 stocks which could give up to 11% return

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.

A sustained trade below 10,050 can accelerate the fall to levels of 9,930-9,700. However, 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.

Moreover, the relative strength index or the RSI has turned down from the neutral levels of 50 on two occasions in recent pullbacks suggesting further weakness in the coming trading sessions.

Here is the list of stocks which can give up to 11 percent return:

Arvind Ltd: SELL| Target Rs345| Stop Loss Rs410| Return 11%

On the weekly chart, Arv…

Market Update: PSU bank index outperforms as PNB, Syndicate Bank jump 2-5%; JP Associates zooms 11%

The market breadth was in favour of the advances with 957 stocks advancing while 668 declined and 383 remained unchanged. On the other hand, in the BSE, 1176 stocks advanced and 888 declined and 108 remained unchanged.

The Indian markets on Friday morning were trading flat with the Nifty shedding 51 points or 0.49 percent  while the Sensex was down 178 points.

The Nifty PSU banking index was up 0.6 percent led by stocks like Syndicate Bank which jumped 5 percent followed by Allahabad Bank which gained over 3 percent. IDBI Bank and OBC were the other gainers. PNB gained 2.38 percent.

The top Nifty gainers included Mahindra & Mahindra and Aurobindo Pharma which were up 1.7 percent each followed by UPL, Yes Bank and Zee Entertainment.

The top Nifty losers included IOC and BPCL which fell 2 percent each followed by HPCL, Tata Motors and NTPC.

The most active Nifty stocks included IDBI bank which jumped over 3 percent while JP Associates zoomed over 10 percent after Rakesh Jhunjhunwala…

HDFC Sec retains sell on Bharti Infratel, reduces target to Rs 310 despite 22% fall in last 2 months

The share price has declined from a peak of Rs 480 to Rs 373 (22 percent) in last two months.

Bharti Infratel shares declined 1.5 percent to close at Rs 368 on Tuesday after HDFC Securities has reiterated its Sell rating on the stock with revised target price at Rs 310 (from Rs 387 per share) despite sharp fall in last two months. INDIAN STOCK TIPS

The share price has declined from a peak of Rs 480 to Rs 373 (22 percent) in last two months.

"Target price is based on 20x Dec-19E EPS (Rs 356) for business as usual (versus 24x earlier) less impact of Rs 60 per share from Vodafone-Idea merger (versus Rs 39 per share earlier) and likely acquisition of Vodafone-Idea stake in Indus at enterprise value of Rs 50 lakh per tower (+Rs 15 per share)," the research house said.

It further said the key reason for the de-rating is instant loss of tenancies on merger of Vodafone-Idea and impact of Reliance Communications and Aircel businesses’ scaling down.

This would push back Bharti Infrat…