The Nifty closed above its crucial psychological resistance level of 10,400 last week and if geopolitical tensions escalate there is a possibility that the index could retest 10,300-10,200 levels, analysts said.
The real action was seen in the broader market, which offered decent trading opportunities for market participants. There has been a steady upmove in the Nifty last week but the negative market breadth was one crucial factor which made analysts cautious about the recent upmove.
The index did have a touch and go moment with 10,500 and if it holds above 10,450 levels on Monday, then there is a higher possibility of it reclaiming 10,600 levels soon.
“Considering the recent development in some heavyweight counters, a possibility of extending the upmove towards 10,580-10,640 cannot be ruled out. But now we will not be as convinced as we were a couple of weeks ago,” Sameet Chavan, Chief Analyst, Technicals and Derivatives at Angel Broking, told Moneycontrol.
“We would certainly avoid aggressive longs and traders should ideally start liquidating long positions in a gradual manner. It would certainly be a prudent strategy to stay light with a stock specific approach,” he said.
For the coming session, Chavan sees 10,520 followed by 10,580 as an immediate resistance zone. On the downside, he sees 10,450 followed by 10,355 as crucial supports.
Here is a list of top 10 ideas priced less than Rs 1,000 which can deliver up to 17% return in the short-term:
Analyst: Sameet Chavan, Chief Analyst, Technicals and Derivatives at Angel Broking
Glenmark Pharma: Buy | Target: Rs 621| Stop loss: Rs 555.70| Return: 12%
This pharmaceutical counter has been a laggard for over two years. Recently, the prolonged correction halted above the Rs 500 mark after forming a strong base for nearly six to seven weeks.
The stock has finally managed to burst through the recent congestion zone. Volumes have picked up substantially during the last few days.
Hence, we expect the stock to continue to move higher and eventually climb towards our near-term target of Rs 621 per share. Traders are advised to follow a strict stop loss of Rs 555.70 per share.
Indian Hotels: Buy | Target: Rs 149| Stop loss: Rs 132 | Return 8%
This has been a steady mover and generally is not considered as a trader’s favourite due to its slow-moving nature. The daily chart now depicts a bullish candle along with sizable volumes.
This indicates a possible breakout from the recent hurdle of Rs 140 per share. Considering the higher degree of uptrend, we anticipate this price action to happen soon. One can look to go long in the stock for a target of Rs 149 per share by following a strict stop loss below Rs 132 per share.
Hindalco: Sell | Target: Rs 228| Stop loss: Rs 244| Return 4%
This metal giant has shown a decent recovery over the past couple of weeks. However, the weekly chart indicates that the worst is not over for the stock.
The stock has now reached its previous breakdown point of Rs 238 which coincides with a couple of key moving averages. Hence, the recent upmove can be construed as a relief rally.
We expect yet another attempt to slide in the near-term. Short-term traders can look to sell with a target of Rs 228 per share by following a strict stop loss at Rs 244 per share.
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com
Indiabulls Venture: Buy | Target: Rs 349 | Stop loss: Rs 306 | Return 10%
Indiabulls Venture continues to trade in a positive trajectory on its long-term price chart despite weak market sentiment.
The scrip made a decisive breakout from its upper price band during the last trading session to create the next leg of the rally. It also witnessed a robust growth in volumes at about four times its daily average.
On the weekly price chart, the scrip made a strong bullish candlestick pattern indicating a positive signal coupled with a positive cue on the MACD indicator.
Further, its RSI level at 67 indicates strong support for the momentum, with the share trading above its upper band.
The scrip is currently holding on to its resistance level of Rs 383.3 on pivot points and support level at Rs 288. We have a Buy recommendation on the counter.
Vakrangee: Sell | Target: Rs 123 | Stop loss: Rs 145 | Return: 7%
Vakrangee continues to consolidate on its weekly and monthly price chart after making a decent rebound near Rs 285 levels, but failed to hold that level and slipped below its crucial support placed at Rs 160-155 levels.
A Bollinger band has signalled price hitting the lower band which is a negative trend. The scrip formed a strong bearish candlestick pattern on its weekly price chart with price trading below all crucial levels.
The secondary momentum indicator continues to indicate a negative signal with RSI at 34 levels coupled with weak support from the MACD indicator.
The scrip is facing resistance at Rs 194 levels and strong support at Rs 112 levels. We have a Sell recommendation on Vakrangee.
Deepak Fertilisers: Buy | Target: Rs 392 | Stop loss: Rs 360 | Return: 5%
Deepak Fertilisers witnessed robust momentum last week after consolidating over three months from its earlier peak. It has made a strong rebound from Rs 288 levels.
The scrip made a crucial breakout from its 200-day EMA, indicating a reversal trend in its price chart. Further, Bollinger bands indicate price hitting the upper band which is a positive signal.
After closing with an about nine percent gain on a weekly basis, the scrip made a bullish reversal candlestick pattern on its weekly price chart. Weekly RSI at 55 indicated sustained buying coupled with positive MACD cues.
The scrip is now facing a resistance at Rs 402 levels and support at Rs 355 on pivot points. We have a Buy recommendation on the stock.
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Dewan Housing Finance: Buy | Target Rs: 587| Stop loss: Rs 525| Return: 7%
The counter appears to have resumed its rally after consolidating for the seven sessions in a band of Rs 545–526. Hence, traders can buy into this counter with a target of Rs 587 and a stop below Rs 525 on a closing basis.
Brokerage: ICICIdirect (Time period 30 days)
D-Link: Buy | Target: Rs 126| Stop loss: Rs 102| Return: 17%
The share has registered a breakout above the bullish flag pattern, signalling a positive bias. The breakout was accompanied by strong volumes of over three times its 200-days average volume of 3 lakh shares per session, indicating larger participation in the direction of the trend.
Thus, it supports the continuance of the positive trend. Last week, the stock witnessed a strong rebound from the support area of Rs 81 and has rallied to Rs 112 in just three sessions.
Post this, the index consolidated for the last three sessions during which it retraced its previous upmove by just 23.6%, signalling a positive price structure.
We expect the stock to continue its current upmove and test levels of Rs 126, which is the confluence of the 61.8% retracement of the entire decline (Rs 153–81) and February high of around Rs 126.
PNC Infratech: Buy | Target: Rs 205| Stop loss: Rs 166| Return: 17%
The share price remains in an uptrend, forming a rising peak and trough on the weekly chart. The stock has rallied to an all-time high of Rs 228 in December 2018. Since then, it has been in a corrective decline for the last three months.
The recent price activity suggests that the corrective decline has approached maturity and the stock is likely to resume a fresh upmove.
The stock has recently rebounded from the support area of Rs 150-155, which is the confluence of its 52 week EMA and 80% retracement of the previous up move (Rs 130-228).
The sharp upmove in the last two weeks from the support area signals a reversal of the corrective trend and offers a fresh entry opportunity.
We expect the stock to continue with its current upmove and test levels of Rs 211, which is the 80% retracement of the entire decline (Rs 228–148).
Godrej Properties: Buy | Target: Rs 850| Stop loss: Rs 685| Return: 17%
The counter was consolidating in a broader range of Rs 728 and Rs 859 over the last two months. During this two-month consolidation, the stock has taken support from the gap area on January 8 on multiple occasions, indicating sturdy base formation around Rs 728.
At present, it has registered a breakout from the falling trend line, drawn adjoining the subsequent high of Rs 912–849, supported by above average volumes, indicating termination of an intermediate correction.
Among oscillators, RSI found support from its one-year long support base of 35 and is pointing upward, confirming base formation.
The stock is likely to head higher in the near-term towards Rs 850 as it is the placement of identical highs coinciding with the upper band of the broader consolidation range of Rs 859-728.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their 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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