Momentum plays: 5 stocks that can give 7-15% return in a month

Though the upside has been capped at 11,000, Nifty has been forming higher lows since its October low indicating buying at higher levels.

The Nifty led by key heavyweights closed half a percent higher at 10,962 for the day. After a cautious opening, the index rallied in the first hour of trade and then remained bound the rest of the session.

The broader market, BSE Midcap and Smallcap underperformed the benchmark losing 0.56 percent and 0.70 percent respectively. The market breadth on the NSE was negative with one stock advancing for every two declines.

The index has been consolidating for the last six weeks and it has been witnessing narrowing of the range. Thus, suggesting the market is likely to see a breakout from the range.

Though the upside has been capped at 11,000, Nifty has been forming higher lows since its October low indicating buying coming in at higher levels.

On the upside, 11,000 needs to be taken with momentum and sustained for the index to move higher. Then the market can rally towards 11,090 and then 11,170. On the downside, the immediate support is seen at 10,845, below which the index can decline lower towards 10,690.

Here is a list of top five stocks which could return 7-15 percent in the next 1 month:

The stock touched a high of Rs 1,467 in September last year and then corrected down towards Rs 1,083 in October. Since then, the stock has witnessed a steady rise and formed higher tops and higher bottoms on the daily chart.

In Monday’s session, we saw a fresh breakout and the stock hit a new all-time high of Rs 1,491. The price has given a breakout on the upside from Bollinger Band and with the expansion of bands indicating a continuation of the trend in the direction of breakout on the daily chart.

The momentum indicators are in a bullish mode on daily as well as on the weekly chart. Thus, the stock can be bought at current levels and on dips towards Rs 1,280 with a stop loss below Rs 1,410 and a target of Rs 1,700.

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