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Failure to cross 11,100 could trigger profit booking; 3 stocks which could give up to 26% return

Failure to cross 11,100 can trigger profit booking dragging the Index lower to levels of 10,500-10,250. The Bank Nifty is also showing strength making new highs which can take the headline Index Nifty to 11,100 to 11,400 levels.

The Nifty index gained further momentum extending its 3rd impulse wave to make new all-time highs. Further, following this sharp up-move it is approaching its upper end of the rising channel resistance placed in the zone of 11,000-11,100.

Moreover, 161.8% extension of the wave 1 (i.e. 6833-8994) is placed at 11,400. Partial profit booking is advised as the Index approaches 11,400.

Further, the relative strength index (RSI) continues to form higher highs in line with price making higher highs affirming the strong bullishness dominant at the moment.

Failure to cross 11,100 can trigger profit booking dragging the Index lower to levels of 10,500-10,250. The Bank Nifty is also showing strength making new highs which can take the headline Index Nifty to 11,100 to 11,400 levels.

Here is a list of top 3 stocks which could give up to 26% return in the next 3-4 weeks:

Laurus Labs: BUY| Target Rs620| Stop Loss Rs520| Return 13%

On the weekly chart, Laurus Labs Ltd has broken out of a Triangle pattern (as indicated on chart). A sustained trade above Rs554 i.e. recent highs on higher volumes may trigger a bullish breakout.

On the daily chart, the stock is oscillating in a Pennant pattern after taking support at 61.8% Fibonacci retracement level affirming start of a bull trend on cards.

RSI has formed a positive divergence with respect to price after taking support at the 40 level. The stock may be bought in the range of 545-550 for targets of 595-620, keeping a stop loss below 520.

Prism Cement Ltd: BUY| Target Rs180| Stop Loss Rs124| Return 26%

On the weekly chart, Prism Cement Ltd has broken out from an ascending triangle pattern triggering a bull trend reversal. The neckline of the pattern is placed at Rs130, and a sustained trade above the neckline with healthy volumes can extend the up move.

On the daily chart, the stock is on the verge of a breakout from a flag pattern suggesting bullishness building up.

The RSI has turned upwards breaking out of the upper band of the Bollinger Bands suggesting higher levels in the coming trading sessions. The stock may be bought in the range of 140-144 for targets of 170-180, keeping a stop loss below 124.

Wonderla Holidays Ltd: BUY| Target Rs477| Stop Loss Rs380| Return 15%

On the weekly chart, Wonderla Holidays Ltd has broken out from a channel pattern triggering the start of a bull trend. Further, it has broken out of the channel after 2 years of consolidation strong upside momentum.

On the daily chart, is continues to form higher highs and higher lows affirming bullishness. Further, RSI has also broken down from the lower Bollinger band suggesting lower levels. The stock may be sold in the range of 412-417 for targets of 456-477, keeping a stop loss below 380.

Disclaimer: The author is Technical Analyst, YES Securities (I) Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com 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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