A roller coaster ride for Nifty50, but strong buying at lower levels helped Nifty50 climb 10,800 on weekly basis. The index bounced back after hitting a low of 10,709.05 on June 8 to close at 10,817.70, a gain of nearly 0.5 percent on weekly basis.
Volatility rose after the US Federal Reserve hiked interest rates by 25 basis points and European Central Bank (ECB) signalling an end to the bond purchases by 2018 end while Bank of Japan (BoJ) maintained its ultra-loose monetary policy.
“Rising interest rates in the US and expected increase in interest rates from 2019 summer may weigh on the foreign portfolio investors (FPIs) flows going forward. Going ahead the markets would also weigh the concerns coming from possible trade war between US and China,” Teena Virmani, vice president, research at Kotak Securities Ltd told Moneycontrol.
“Higher interest rates have resulted in valuation multiple contractions and going forward gains in the market would largely hinge on earnings recovery,” she said.
On the technical front, most experts are of the view that a possibility of breakout beyond 10,800 is on the cards and could possibly extend towards 10920-10,930 levels gradually. On the flipside, 10,698 followed by 10,650 would be seen as immediate supports.
“We expect some consolidation in benchmarks with a positive bias. Traders are advised to focus on individual pockets that are poised for decent moves. This optimism remains valid as long as index maintains its position above the 10550 mark,” Sameet Chavan, Chief Analyst, Technicals, and Derivatives at Angel Broking told Moneycontrol.
“As far as sector-specific view goes, we have been quite vocal since the last couple of weeks about ‘Pharmaceutical’ space getting bottomed out. Friday’s gigantic move in this basket certainly validates our contradictory stance,” he said.
Stock specific moves likely to happen in selective IT, Pharma, non-banking financial companies (NBFC) stocks and heavyweights stocks are likely to take lead while public sector banks (PSU), Auto, Cement, Mid and Small Cap stocks would be under pressure with limited upside.
“Stock wise we see the positive formation in Bajaj Finance, Bharat finance, Tata Elxsi, TCS, Infosys, HCL Tech, Torrent Pharma, Sun Pharma, Lupin, Jubilant Foodworks, UPL, etc,” Chandan Taparia, derivatives, and technical analyst at Motilal Oswal Securities told Moneycontrol.
Here is a list of top 10 money making ideas from different experts which could give 4-12% return in the next 30 days: Analyst: Sameet Chavan, chief analyst, technicals, and derivatives at Angel Broking Kaveri Seed Company Ltd: Buy| LTP: Rs 560.05| Target: Rs 625| Stop loss: Rs 524| Return 11%
Last week, after a long consolidation, the stock finally managed to burst through its recent congestion zone. If we look at the volume activity, it has picked up substantially during this development, providing credence to the breakout.
Since the last couple of days, we are seeing some subdued movement due to lack of follow up buying in the counter. But, if we consider the broader picture now, we would construe this as a good buying opportunity for a target of Rs 625. Traders can keep their stop losses at Rs 524.
Delta Corp Ltd: Buy | LTP: Rs 245.90 | Target: Rs 270 | Stop Loss Rs 229 | Return 10%
Last few months have not been great for this traders’ favorite counter after enjoying a relentless bull run throughout the calendar year 2017. Recently, stock prices consolidated within the boundaries of a ‘Falling Wedge’ pattern.
Last week, we witnessed a breakout from this pattern with reasonably higher volumes. Although it would be too early for this call, we expect the stock to start the upward leg of the rally. Hence, one can look to go long for a target of Rs 270 by following a strict stop loss of Rs 229.
Analyst: Dinesh Rohira, founder & chief executive officer, 5nance.com Nava Bharat Ventures Ltd: Buy | Target: Rs 163 | Stop-loss: Rs 132 | Return: 12%
Nava Bharat traded in a positive trajectory on its weekly price chart post its correction from its 52-week high of Rs 184 levels. It took a strong support at Rs 120 levels.
Despite a muted market breath, the scrip witnessed a strong momentum as it managed to break out from its multi-long moving average level of 200-50-days.
It also witnessed a substantial volume breakout on the weekly chart which indicates an upward trend. On the weekly price chart, the scrip registered a solid bullish candlestick pattern indicating a sustained rally post current breakout from crucial levels.
Further, the weekly RSI is placed at 58 which suggests a buying regime at a current level along with positive cues from MACD suggesting an upward shift.
The stock is likely to face resistance around Rs 168 while support level is placed at Rs 288. We have a buy recommendation for Nava Bharat Ventures which is currently trading at Rs 145.60
Hindustan National Glass & Industries Ltd: Buy | Target: Rs 113 | Stop-loss: Rs 95 | Return: 8%
After witnessing a sharp correction from Rs 167 odd levels in the past few months, Hind Nat Glass witnessed a reversal trend in the recent period. A strong support is placed at 78-76 levels.
The scrip registered a strong pullback throughout the session as it managed to decisively break out from its crucial moving average level of Rs 94 levels on closing basis coupled with positive volume growth above average.
The scrip gained about 12 percent on an intraday basis and about 32 percent on the weekly basis. The positive breakout on the weekly basis aided the scrip to form a long-solid bullish candlestick pattern indicating a strong reversal trend for a couple of sessions.
The weekly RSI trend registered an upward momentum at Rs 67 suggesting a buying regime along with MACD moving near bullish crossover.
The scrip has a support placed at Rs 78 levels and resistance level at Rs 128. We have a buy recommendation for Hindustan Nat Glass which is currently trading at Rs 104.90
Gruh Finance Ltd: Sell Target: Rs 309 | Stop-loss: Rs 335 | Return 4%
Gruh Finance witnessed a sharp correction on the weekly price chart despite making a decent move on the upside. The scrip came under pressure last week as it lost about 11 percent on weekly basis and slipped below the short-term moving average level of Rs 330.
It also witnessed a negative volume support indicating a sustained pressure on short-term basis.
The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below important level indicating a sustained pressure.
Further, the secondary momentum trend continued to indicate negative signal with RSI slipping below at 39 coupled with the bearish outlook from MACD trend.
The scrip is facing a resistance at Rs 337 levels and crucial support from 100-days EMA is placed at Rs 305 levels. We have a SELL recommendation for Infibeam which is currently trading at Rs. 322.45.
Analyst: Rajesh Palviya – head-technical & derivatives, Axis Securities CDSL: Buy| CMP: Rs 294| Target: Rs 308-320 | Stop loss: Rs 278 | Return 8.8%
With current week's 5 percent gains the stock has decisively broken out its five weeks consolidation range (290-265) on closing basis indicating a shift of short-term trend to upward. This breakout is accompanied with high volumes indicating increased participation on the rally.
The stock has also broken out past six months downward sloping "Trendline" breakout at 283 levels which reconfirms bullish sentiments in near term. Currently, the stock is well placed above its 20 and 50 days SMA which signals positive bias ahead.
The strength indicator - RSI is placed above its reference line on the daily and weekly chart which interprets rising strength on the rally.
Buying Range: Rs 294-290
Apollo Hospital Ltd: Buy | CMP: Rs 1,038 | Target: Rs 1064-1082 | Stop loss: Rs 980| Return 8.8%
On the daily chart, the stock has observed an "Inverse Head & Shoulder" - a short-term trend reversal pattern breakout at Rs 1,025 level on a closing basis. This breakout is supported with huge volumes indicating strength ahead.
The stock is sustaining above its 20 and 50-day SMA which supports bullish sentiments ahead. On the weekly chart, the stock has observed rising volumes which signal increased participation for short to medium term.
Daily as well as weekly indicators - RSI and Stochastic both are in positive territory which supports buying momentum to continue ahead.
Buying Range: Rs 1,030-1,010
Analyst: Mazhar Mohammad, chief strategist – technical research & trading advisory, Chartviewindia.in RIL: Buy | LTP: 1,013 | Target: Rs 1,130 | Stop loss: Rs 980 | Return 11%
With new lifetime highs, this counter appears to be heading for a fresh breakout above its multi-week ascending channel which has a potential target of Rs 1,130. Hence, positional traders are advised to buy into this counter now and on declines up to Rs 990 for a target of Rs 1,130 with a stop below Rs 1,180 on a closing basis.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. Muthoot Finance: Buy | LTP: Rs 386.40 | Target: Rs 420 | Stop loss: Rs 380 | Return 8.8%
At a recent low of Rs 383, this counter retraced around 62 percent of its last leg of the rally from the lows of Rs 369 – 399.
We suspect some sort of accumulation in this counter as for the most part of the Friday’s session it has remained in positive terrain withering the market turmoil.
If it has bottomed out and fresh upswing is in progress then the initial hurdle around Rs 405 should be taken off.
In such a scenario, it should head all the way to test 200-day moving average (DMA) whose value is placed around Rs 420. A stop suggested for the trade is a close below Rs 380.
Mahindra Lifespace: Buy | LTP: Rs 570.40 | Target: Rs 620 | Stop loss: Rs 540 | Return 8%
The recent price action in this counter with the expansion of intraday price range on high volumes is pointing towards some sort of accumulation suggesting it can be in for a sustainable up move going forward.
Hence, positional traders should buy now and on declines between Rs 560 – 555 range for a target of Rs 620. A stop suggested for the trade is below Rs 540 on a closing basis.
Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions. Moneycontrol.com