The relative strength index (RSI) is trading near 66 levels, which indicates positive momentum and support for the bullish rally
Continuing its gaining spree, the Sensex hit an all-time intraday high of 36,740 levels on Friday. After a back to back upswing, some consolidation at upper levels will be healthy sign for bulls. The Nifty needs to hold above its support of 10,880 to gaining momentum further on the higher side.
The relative strength index (RSI) is trading near 66 levels, which indicates positive momentum and support for the bullish rally. The Bollinger Band reveals that a bullish breakout occurred on July 10, which justifies the volatile movement further.
The Nifty closed above its 20-day daily moving average (10,790), which notifies strength and a positive tone. Although majority of the oscillators are in the overbought zone, the stochastic is around 90. At the same time, the commodity channel index (CCI) indicator is around 172 levels. Any dip shall be considered as an opportunity to go long.
On the options front, highest put open interest (OI) is seen around 10,600 strike followed by 10,700 strike. Maximum call open interest is seen around 11,000 levels, followed by 11,100. Option data signifies an immediate trading range between 10,700 and 11,100 levels.
We expect the benchmark index to trade higher. One can initiate buy positions around 10,900 levels, keeping a stop loss of 10,600. However, a trade above 11,050 would indicate a breakout and lead the index further towards new life highs of 11,171 levels. The Nifty has to close below 10,730 levels, which may lead to a correction to 10,600 levels.
The Bank Nifty needs to trade above its strong support of 26,600 to gain further. Sustainability above 27,100 levels would result in a break out to higher levels towards 27,384-27,600 levels.
Here is the list of 5 stocks that can return 14-20 percent:
IRB Infrastructure: Buy | Range: Rs 200-205| Target - Rs 245| Stop Loss - Rs 179| Upside - 20%
IRB, after hitting the peak of Rs 286, the stock slipped near 52-week low from where chances of developing of demand is higher and it has been trading in a range bound zone of Rs 200 and Rs 286 marks since last 5 years.
As of now, the point of polarity is giving cues to accumulate this stock at lower levels of the range. The RSI also has been hovering near the oversold zone and currently, it has indicated a steep rise.
As long as it sustains above Rs 179, the possibility of moving on the upside is higher and it can hit our first target of Rs 240 and the second target is Rs 260 with an ease.
Arvind: BUY | Range - Rs 423-425| Target - Rs 490| Stop Loss - Rs 389| Upside - 17%
The stock is trading with a higher top and higher bottom formation indicates uptrend continuation. Currently, prices are in ‘E’ leg of the symmetrical triangle pattern.
The MACD has given bullish crossover in negative territory on daily chart giving the implication of further strength. Weekly trend line break out is expected above Rs 423 mark and RSI has already given trend line breakout which further confirms its bullish bias.
Strong support is seen near Rs 410-412 near 200 DMA which attributing further strength. One can long Arvind above Rs 423 with stoploss of Rs 389 for the target of Rs 475 and Rs 490 levels.
Raymond: Buy | Range - Rs 880-890| Target - Rs 1,000 | Stop Loss - Rs 849 | Upside - 15%
After making a double top near Rs 1,150, Raymond corrected nearly 24 percent in a time span of just two and half months.
The emergence of positive divergences can be seen at current juncture both in RSI & Stochastic indicators, signals reversal of prices ahead.
Short term pull back rally cannot be ruled out. Therefore we recommend initiating a long position in Raymond in Rs 880-890 levels by keeping stop loss at Rs 849 and the upside targets are Rs 960 and Rs 1,000.
Glenmark: Buy | Range - Rs 560-565| Target - Rs 645| Stop Loss - Rs 513| Upside - 15%
From last few days, scrip has been consolidating near its falling trend line from where the possibility of a bounce back is higher.
The 200-DMA will act as the sacrosanct support where upsurge can be seen on upside. The occurrence of Cup and Handle pattern on daily chart along with crossover of 20 & 50 DMA giving further boost for momentum.
RSI also lending support to the price action. On the weekly chart, it has been forming a falling channel and break out is expected above Rs 614 levels from where it can surge higher till Rs 640 and Rs 665 marks. One can go long with stop loss of Rs 513 mark.
Lupin: BUY | Range - Rs 860-870| Target - Rs 975| Stop Loss - Rs 803| Upside - 14%
Scrip has given falling wedge breakout, after giving short term consolidation on the daily chart. From last few days, it has been trading in its congestion zone after giving double bottom breakout and retest the neckline of double bottom creates buying opportunity in the scrip again.
Moreover, the sustainability of RSI above 9 days EMA is giving cues for upside momentum. Strong support is seen at near Rs 858 levels where 200-DMA is seen.
By looking at all these factors, trader and investor can buy this scrip around Rs 860-870 with the stop loss Rs 803 for the target of Rs 950 and Rs 970 levels.Disclaimer: The author is Head - Technical & Derivative Research, Narnolia Financial Advisors. 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.
Two days Free Trials and best services packages for dealing in Stock market click here to get >> Nifty Market Tips and Ripples Advisory One Missed call on @9644405056
No comments:
Post a Comment