Shabbir Kayyumi
Last week witnessed not only a roller coaster movement filled with high volatility where the market swung in red and green zone, but also finally settled near the major psychological mark of 10,000.
The continuous formation of bullish 'Heikin Ashi candle' suggests bulls are not ready to lose their grip so easily and are defending its lower crucial support standing around 9,900 levels.
Nifty is trading above 20 DMA and mid-term moving average 50 DMA indicating bullish bias, at the same further rally can come only once Nifty closes above 100 DMA standing around 10,200 levels.
Andrew Pitchfork on the recent swing pivot points on the daily chart of Nifty shows the middle line of the fork is standing around 10,700 mark. This line acts as a magnet to prices, hinting that the price can trade higher to 10,700 to touch it.
However, on a lower side, crucial support is seen at 20 DMA standing around 9,600 mark and any decisive move below this zone can push the index lower towards 50 DMA around 9,300 mark.
Banking index traded in a range of 2,000 points in the last week; 20 DMA and line of parity standing around 19,500 acted as strong support in the fall during the last trading session. Any decisive closing above swing high standing around 21,600 will reverse the mid-term trend and prices can trade higher towards 100 DMA placed around 23,800.
Here are three stocks that could return 15-29 percent in short term:
Tata Motors: Buy Around Rs 104 | Target: Rs 135 | Stop Loss: Rs 89 | Upside: 29 percent
Prices have given Cup & Handle breakout on the upside with the expansion of bands on daily chart suggesting a continuation of the trend in the direction of the breakout. MACD has given bullish crossover and about to move above the equilibrium level of zero on daily chart. RSI trading above 50 marks on daily chart is also adding further strength in the stock.
Traders can accumulate the stock on dips around Rs 104 for the upside target of Rs 135 and with a stop loss of Rs 89.
IndusInd Bank: Buy Around Rs 525 | Target: Rs 625 | Stop Loss: Rs 480 | Upside: 20 percent
The stock has been consolidating in a wide range from the past few weeks. Currently stock has given breakout with long body bullish candle from the rounding pattern indicating move on the upside. Positive crossover in MACD with ascending histogram is attributing further strength. RSI also gave a positive crossover with its average on daily chart.
Thus, stock can be bought around Rs 525 with stop loss of Rs 480 and for the target of Rs 625.
Power Finance Corporation: Buy Around Rs 83 | Target: Rs 96 | Stop Loss: Rs 75 | Upside: 15 percent
From last few weeks, this counter is moving in a well-defined falling channel with multiple touch points and appears to be having strong support around Rs 74-75 levels as it bounced back on a couple of time from the demand zone of the mentioned channel.
Hence, if the stock sustains above this support then a decent target of Rs 96 is not ruled out in this counter over a given period of time.
Therefore, investor should accumulate this scrip around Rs 83 with a suggested stop loss of Rs 75 and for the upside target of Rs 96.
(The author is Head of Technical Research at Narnolia Financial Advisors.)
Disclaimer: 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.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
