The daily lower Bollinger Band, where the index had halted in Thursday’s session, acted as a springboard, pushing the index higher.
The Nifty50 closed the week on a weak note with the index losing by about 1 percent in a volatile week weighed down by weak global cues, selling by foreign institutional investors (FIIs), rising crude oil prices as well as weakness in rupee, which touched an all-time low.
The daily lower Bollinger Band, where the index had halted in Thursday’s session, acted as a springboard, pushing the index higher. The index made a 'Long White Day' pattern on the daily charts on Friday and Hammer Candle pattern on the weekly scale.
The index witnessed a strong reversal from the bearish trend made in the last two trading sessions but for bulls to take control, the index needs to close above 10,785 in the coming session for confirmation, experts said.
“Friday’s bounce is nothing but the retracement of the impulsive fall. The bounce has so far retraced 61.8% of the fall & is likely to subside near 10,750 where there are multiple parameters to restrict further upside,” Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol.
“Hence, the pullback can be taken as an opportunity to initiate fresh short position near 10750. The short-term target on the downside will be the May low of 10,417 with the potential to slide down to lower levels. On the other hand, 10,837-10,893 shall act as a crucial resistance zone,” he added.
Here is a list of top 10 trading ideas by different experts which could give 4-11 percent return in the next 1-2 months:
Analyst: Rajesh Palviya, Head- Technical & Research, Axis Securities
Adani Ports Ltd: Buy| CMP: Rs 372.05| Target: Rs 388-393| Stop Loss: Rs 358| Return 5-7%
On the daily chart, Adani Ports has given a down sloping trend - line breakout at Rs 365 level. Volumes are supporting the breakout as well which is a bullish sign.
The stock gave a reversal turnaround from the major support zone of Rs 350-356. This reversal can also be noticed on the weekly chart.
The momentum indicator is positive on the daily chart in the stock thus providing with the indication toward the commencement of the bullish trend
Greaves Cotton Limited: Buy| CMP: Rs 143.50| Target: Rs 148-153| Stop Loss: Rs 133| Return 8-11%
Greaves Cotton has given a downward sloping trendline breakout at Rs 140 on the weekly chart. The breakout is supported by an increase in volumes. The stock is trading above its all-important moving averages i.e. 20 - 50 - 100-day moving averages.
The strength index and momentum indicator are in a positive terrain thus indicating a strong bullish trend in the stock.
Godrej Industries Limited: Buy| CMP: Rs 627| Target: Rs 655-663| Stop Loss: Rs 600| Return 6-7%
Godrej Industries has formed a downward sloping channel on the weekly chart from 28th July 2017 to 28th June 2017 and has the inclining range from Rs 690 - 620 on the upper band to 550 - 490 on the Lower band of the channel.
The breakout was witnessed on 29th June 2018 at Rs 620 levels. The strength index and momentum indicator are in positive terrain thus supporting the breakout and indicating the strong bullish trend in the stock.
The stock is also trading above its all-important moving averages i.e. 20 - 50 - 100-day moving averages.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Tata Steel: Buy| CMP: Rs 567.85| Target: Rs 605| Stop Loss: Rs 547| Return 6%
At the recent low of Rs536, Tata Steel appears to have made a double bottom kind of a formation from the cushion of which it is making an attempt to rally.
In that case, it can easily retest its 200-day Moving Average (DMA) on the way upside. Hence, positional traders should buy into this counter for a target of Rs 605 with a stop placed below Rs 547 on a closing basis.
Yes Bank: Buy| CMP: 339.60| Target: Rs 369| Stop Loss: Rs 325| Return 8%
This counter appears to be in a consolidation mode after registering swift gains from the lows of Rs 309 – 369 in a single week of April 2018. Since then, it is in a multi-week corrective and consolidation process, and it appears to have made a decent base around Rs 330 levels.
Hence, on a sustainable pullback, as long-term trend is strong and intact it can make one more attempt to retest recent highs of Rs 369. Hence, positional traders should make use of this opportunity to go long for a target of Rs 369 and a stop below Rs 325 on a closing basis.
Firstsource Solutions Ltd: Buy| CMP: Rs 70.40| Target: Rs 79| Stop Loss: Rs 67| Return 12%
After the recent correction from the highs of Rs 84, this counter appears to be making an attempt to bottom out around Rs 68 levels for the last three sessions. It defended the same level before registering a Harami kind of reversal formation in Friday’s session.
As the risk-to-reward ratios will be favourable, traders should buy the stock around these levels for a target of Rs 79 and a stop loss placed below Rs 67 on a closing basis.
Brokerage Firm: SMC Global Securities
Dabur India: Buy| LTP: Rs 391.45| Target: Rs 425-430| Stop Loss: Rs 365| Return 10%
The stock closed at Rs 391.45 on the 29th June 2018. It made a 52-week low at Rs 287.10 on 30th June 2017 and a 52-week high of Rs 396.40 on 27th June 2018.
The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 347.11. After testing the low of Rs 310 levels, the stock has been started moving higher, was formed a “Bull Flag” pattern on weekly charts, which is considered to be bullish.
Last week, the stock has given the breakout of same by gained over 1.5 percent. We can also rise in volume activity which indicates that buying is more aggressive for the stock.
Therefore, one can buy in the range of Rs 384-388 levels for the upside target of Rs 425-430 levels with a stop loss below Rs 365.
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
Kolte-Patil Developers Ltd: Buy| Target: Rs 302 | Stop-loss: Rs 261 | Return: 10%
Kolte-Patil Developer made a decent pullback in the recent trade after it went through a sharp correction from highs of Rs 383 levels on a year-to-date (YTD) basis, and took a strong support at Rs 229 levels.
It also managed to break out from the long-term moving average level of 100-50-days at Rs 259-248 levels and registered a gain of about 19 percent on an intraday basis.
Indicating a bullish trajectory, the scrip also witnessed robust volume growth which was substantially higher than average volume level.
On the weekly price chart, the scrip registered a strong bullish candlestick pattern indicating that the rally is likely to sustain a rally after decisively closing above crucial levels.
Further, the weekly RSI at 52 levels which is above the previous level signaled favorable divergence coupled with the positive signal on MACD trading above Signal-Line.
The scrip is currently holding resistance level at Rs 311 and a support level placed at Rs 246. We have a buy recommendation for Kolte-Patil Developers which is currently trading at Rs 274.65
Edelweiss Financial Services Ltd: Buy | Target: Rs 313 | Stop-loss: Rs 280 | Return 6%
Edelweiss Financial witnessed a positive breakout from the lower channel on the weekly basis after making a rangebound correction from a price-band of Rs 333-274 levels on the monthly price chart.
Despite slipping below a long-term crucial level of Rs 281, the scrip managed to breakout above 200 & 150-days EMA levels on closing basis indicating reversal of the trend.
Further, it also witnessed a strong volume growth which was above its average level on the weekly basis. The positive breakout on price-chart aided the scrip to form a strong bullish candlestick pattern which indicates a reversal trend from a downward regime.
The weekly RSI trend registered an upward level at 54 suggesting a positive divergence along with positive cues on MACD indicate fresh bullish crossover.
The scrip has a support at Rs 263 levels and resistance level placed at Rs 331. We have a buy recommendation for Edelweiss Financial which is currently trading at Rs. 294.50
Shriram Transport Finance Co. Ltd: Sell | Target: Rs. 1,248 | Stop-loss: Rs 1,320 | Return: 4%
Shriram Transport continued to consolidate on its weekly price chart from a higher band of Rs 1,627 towards a low of Rs 1,282 levels. It failed to reclaim momentum despite several attempts.
The scrip further slipped from crucial levels Rs 1,339-1,304 which marked a strong support zone, and indicates a negative trend for the scrip. The volume trajectory also remains subdued on the weekly-average basis.
The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below crucial moving average level indicating a sustained pressure.
Further, the secondary momentum trend continued to indicate negative signal with RSI slipping below at 41 coupled with the bearish outlook from MACD trend.
The scrip is facing a resistance at Rs 1,339 levels and crucial support at Rs 1,222 levels. We have a sell recommendation for Shriram Transport which is currently trading at Rs 1,299.45.
(Disclaimer: The views and investment tips expressed by investment experts 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)
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