It was a volatile week for Indian markets but the Nifty managed to recoup its losses and closed flat for the week-ended June 22 with a positive bias. With June F&O expiry on Thursday, volatility is likely to pick up this week.
Trade war concerns between the two biggest economies kept the markets on an edge across the globe. Back home, the Nifty remained under quite a bit of stress during the first couple of days but managed to stage a smart recovery towards the end of the week to close above 10,800 levels. It is likely to remain volatile ahead of expiry due on Thursday. Experts say investors should look for stock-specific opportunities to take advantage of the upside momentum.
“The index has a strong base near 10,700-10750, while resistance is placed at 10,930-11,000 levels. If the Nifty manages to breach 10,930, then the possibility of index hitting 11,000 in July expiry will come true. June expiry could occur in the range of 10,700-10,900,” they added.
“Due to massive buying in the concluding hour on Friday, the Nifty managed to give a breakout from a small Triangle pattern. We continue to maintain our positive stance as long as the crucial support zone of 10,700-10,650 is not violated convincingly,” Sameet Chavan, chief analyst, technicals, and derivatives at Angel Broking, said.
He sees the Nifty retesting the higher band of its recent trading range (10,880–10,920) this week. “A sustainable rally beyond this would extend the move in the near term. Since we can see a bundle of stocks providing better trading opportunities, one should concentrate on such potential candidates that are likely to fetch higher returns.” We have collated a list of moneymaking ideas from various experts that can return 4-14 percent in the next 1-2 months:
Analyst: Sameet Chavan, Chief Analyst, Technicals, and Derivatives at Angel Broking ACC Ltd: Buy| LTP: Rs 1,294.65| Target: Rs 1,350| Stop loss: Rs 1,259| Return 4%
It sounds quite contradictory when someone recommends a stock from the ‘Cement’ space which has corrected significantly in the last 5-6 months. On Friday, we witnessed some life coming back in some of the marquee names like ACC and Ambuja.
As far as ‘ACC’ is concerned, of late, it has been languishing in a gradual manner towards its 2016 lows of Rs 1,260. We witnessed a good positive traction along with rising volumes, resulted in a formation of ‘Bullish Hammer’ pattern on weekly chart.
In addition, the ‘Positive Divergence’ in the ‘RSI’ oscillator is providing some conviction for a near-term bounce. Hence, we recommend buying this stock for a near-term target of Rs 1,350. Traders can keep their stop losses placed below Rs 1,259
Piramal Enterprises Ltd: Buy| LTP: Rs 2,599| Target: Rs 2,735| Stop loss: Rs 2,500| Return 5%
After forming a strong base around the weekly ’89 EMA’, the stock is now gearing up for strong moves on the upside. Last week, we witnessed a breakout from the recent congestion zone along with more than its average daily volumes, providing some credence to this move.
The weekly chart now looks very encouraging and hence, we anticipate it to traverse its stiff hurdle of daily ‘200 SMA’ placed around Rs 2,630. One can look to go long on the stock for a target of Rs 2,735 by following a strict stop loss below Rs 2,500.
RBL Bank Ltd: Buy| LTP: Rs 554| Target: Rs 580| Stop loss: Rs 534| Return 4.6%
This has been one of the outperforming stocks within the midcap ‘banking’ space. Recently, there was a breakout seen from the ‘Inverse Head and Shoulder’ pattern around the neckline level of Rs 540.
This was followed by a decent follow-up move, but due to some profit booking, the stock prices came off a bit from the higher levels. However, on Friday, the stock once again picked up strong momentum and has managed to close well inside the positive territory.
Thus, the recent correction can be construed as a pullback and the stock is now likely to start a fresh leg of the rally. One can look to go long on the stock for a target of Rs.580 by following a strict stop loss below Rs 534.
Analyst: Dinesh Rohira, Founder & CEO, 5nance.com Adani Transmissions Ltd: Buy| Target: Rs 183 | Stop-loss: Rs 152 | Return 12%
Adani Transmissions traded in a positive trajectory on its weekly price chart after making a sustain correction in the last six months in a range of Rs 235-120 levels.
It recently witnessed a strong momentum favoring the bullish trajectory as it managed to break out from the crucial moving average level of Rs 151-143, and made a gain of about 10 percent on weekly basis begged by volume buildup.
On the weekly price chart, the scrip registered a strong bullish candlestick pattern indicating a sustained rally after decisively closing above crucial levels.
Further, the weekly RSI at 50 levels which is above the previous level hints at a favorable divergence coupled with the positive signal on MACD trading above Signal-Line.
The scrip is currently holding resistance level at Rs 194 and support level at Rs 146. We have a buy recommendation for Adani Transmissions which is currently trading at Rs 164
Inox Wind Ltd: Buy| Target: Rs 98 | Stop-loss: Rs 85 | Return 7%
After making several corrections on the long-term chart in a price-band of Rs97-82 levels, Inox Wind witnessed a sharp turnaround at the lower channel to trade upward on weekly basis.
The scrip maintained a strong momentum throughout the week with about 7 percent gain on weekly basis and thus indicating a reversal trend.
Further, the scrip made a decisive breakout from the long-term moving average level of 100-days EMA supported by a decent volume momentum on the weekly basis.
The positive breakout on the weekly basis aided the scrip to form a solid bullish candlestick pattern indicating a strong reversal trend in the upcoming session.
The weekly RSI trend registered an upward momentum at 74 suggesting a positive divergence along with positive cues on MACD indicating fresh bullish crossover.
The scrip has a support placed at Rs 82 levels and resistance level at Rs 110. We have a Buy recommendation for Inox Wind which is currently trading at Rs 91.95
Apex Frozen Foods Ltd: Sell| Target: Rs 422 | Stop-loss: Rs 460| Return 5%
Apex Frozen Foods continued to consolidate on its long-term price chart and moved downward from its secondary high level during a week gone by.
During a weekend trade, scrip made a false breakout from its short-term hurdle but successively came under selling regime over a lack of positive trigger.
Further, it slipped from a crucial level placed at 100-days EMA at 458 levels coupled with negative volume growth indicating a sustained pressure on short-term basis.
The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below long-term moving average level indicating a sustained pressure.
Further, the secondary momentum trend continued to indicate negative signal with RSI slipping below at 32 coupled with the bearish outlook from MACD trend.
The scrip is facing a resistance at Rs 490 levels and crucial support at Rs 419 levels. We have a sell recommendation for Apex Frozen which is currently trading at Rs 444.90
Analyst: ICICIDirect Greaves Cotton: Buy| LTP: Rs 135.70| Target: Rs 149| Stop Loss: Rs 126| Return 10%
The stock rose after the sharp decline seen in the second half of the calendar year 2017. It formed a base at the Rs 115 levels during March 2018 which is the previous multiple lows. The stock since then has steadily moved higher forming higher troughs on the daily chart.
The stock is currently placed at the cusp of a trendline breakout joining the recent highs and the price up move on Wednesday’s session supported by the strong volume of almost three times the 200-days average volume of 7 lakhs share per session indicating larger participation at the breakout level.
The short-term support is placed around Rs 126 levels as it is the confluence of the trendline support joining lows of March 2018 (113) and June 2018 (120) and the 61.8% retracement of the previous up move (120- 139).
We expect the stock to head towards Rs 150 levels as it is the 123.6% extension of the previous up move (120-139) as projected from the recent trough of 128 signalling upside towards 150 levels.
Raymond Ltd: Buy| LTP: Rs 962.40| Target: Rs 1102| Stop Loss: Rs 928| Return 14%
The stock has been undergoing a secondary phase of consolidation in the range of (1140–866) post witnessing a robust rally in the calendar year 2017 (492-1142).
Last week, the stock found support from upward sloping trend line drawn adjoining lows of May 2017 (598) and March 2018 (866) and formed a ‘Hammer’ like candlestick pattern on the weekly chart indicating bullish reversal and offers fresh entry opportunity with favourable risk reward set up.
Time-wise, the stock has already taken five weeks to retrace just 61.8% of last five weeks rally (866-1152). The shallow correction along with similar time-wise consolidation indicates a strong price structure
Also, the stochastic oscillator found support from oversold territory and witnessed a bullish crossover, indicating a positive bias.
We expect the stock to continue its buoyancy and gradually head towards Rs 1,108 levels as it is 78.6% retracement of the last leg of decline (1153-942) placed at Rs 1,108 levels.
Analyst: SMC Global Securities KPIT Technologies Ltd: Buy| LTP: Rs 278.70| Target: Rs 315| Stop Loss: Rs 258| Return 13%
The stock closed at Rs 278.70 on 22nd June 2018. It made a 52-week low at Rs 104.05 on 11th August 2017 and a 52-week high of Rs 290.40 on 4th June 2018. The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 210.90.
The stock is continuously trading in higher highs and higher lows “Rising channel” on the weekly charts, which is bullish in nature. Apart from this, it was forming a “Continuation Triangle” on the daily charts and has given a breakout.
So, buying momentum is expected to continue in the coming days. Therefore, one can buy in the range of Rs 272-275 levels for the upside target of Rs 310-315 levels with a stop loss below Rs 258.
Sun Pharmaceuticals Ltd: Buy| LTP: Rs 577.25| Target: Rs 650| Stop Loss: Rs 540| Return 12%
The stock closed at Rs 577.25 on 22nd June, 2018. It made a 52-week low at Rs 432.70 on 14th August 2017 and a 52-week high of Rs. 608.95 on 12th February 2018.
The 200-days Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 535.63. The stock has melted down sharply from Rs 1,200 levels and tested Rs 440 in a single downswing.
Around Rs 440 levels, the stock formed a “Double Bottom” pattern on the weekly charts and has started moving higher. Last week, the stock has given a breakout from the downward sloping resistance line along with huge volumes. It has also managed to close above the breakout levels.Apart from this, technical indicators such as RSI and MACD are showing positive divergence on the weekly charts so buying momentum can continue for coming days. Therefore, one can buy in the range of Rs 570-575 levels for the upside target of Rs 640-650 levels with a stop loss below Rs 540.