Nifty has recently broken out above its crucial hurdle of 10,888–10,929 and extended its gains towards 11,078 levels last week.
The Nifty closed over 2% higher for the week-ended July 13 and is likely to surpass its record high placed at 11,171. The index is just 153 points away from making history. Experts feel this could well come occur this month if the momentum continues.
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The Nifty has been hitting higher lows for the last 9 trading sessions, with supports are gradually shifting higher, which is a bullish sign. It has recently broken out above its crucial hurdle of 10,888–10,929 and extended its gains towards 11,078 levels last week.
India VIX fell 1.13% to 12.30 levels while aggregate put-call ratio moved to its historical high of 1.79 levels. Experts said the strategy should be to buy on declines till 10,900 level is not breached on the downside.
“The activity for major part of the week was very encouraging, but the last couple of days was slightly shaky if one considers the weakness in the broader market. We may not have a smoother ride going ahead, especially in the first half of the forthcoming week,” Sameet Chavan, chief analyst, technicals and derivatives at Angel Broking told Moneycontrol.
“As far as levels are concerned, 10,976 followed by 10,900 are likely to provide decent support for the market. On the upside, 11,078–11,171 are levels to watch out for. For the coming week, it’s advisable to keep focusing on individual stocks that are providing better trading opportunities,” he added.
We have collated a list of top 10 trading strategies from various experts that could return 4-11% in the next 1-2 months:
Brokerage Firm: SMC Global Securities
KPIT Technologies (KPIT): Buy| LTP: Rs 301.45| Target: Rs 330| Stop Loss: Rs 282| Return 9.6%
The stock closed at Rs 301.45 on 13th July 2018. It made a 52-week low at Rs 104.05 on 11th August 2017 and a 52-week high of Rs. 304.70 on 13th July 2018. The 200-days exponential moving average (EMA) of the stock on the daily chart is currently placed at Rs 220.41.
The stock has witnessed a massive upside from Rs 130 to Rs 290 levels in a single upswing from November 2017 to June 2018. Post the upswing it consolidated in a narrow range and has formed a “Bullish Pennant” pattern on the weekly charts, which is considered to be bullish.
Last week, the stock gained over 12% and has given a breakout from the pattern and managed to close around week’s high, which shows bias is aggressive for the stock.
Therefore, investors can buy the stock in the range of Rs c293-296 levels for the upside target of Rs 325-330 levels with a stop loss placed below Rs 282.
Analyst: Sameet Chavan, chief analyst, technicals, and derivatives at Angel Broking
Havells India: Buy| LTP: Rs 560.20| Target: Rs597| Stop Loss: Rs 549| Return 6.6%
It’s been nearly three months, the stock continued its consolidation phase and it made several attempts to surpass the higher boundary of Rs 560 which turned out to be unsuccessful.
However, this week, the stock prices managed to burst through this congestion phase. The volumes did play their role as we witnessed a decent jump during the course of the action.
This was followed by a consolidation with middle negative bias and now it is back to its breakout point. Hence, we interpret this as a good buying opportunity for a near-term target of Rs. 597. Traders can keep their stop losses placed below Rs.549.
GAIL India: Buy| LTP: Rs 356.85| Target: Rs 378| Stop Loss: Rs 341| Return 6%
This index constituent underwent some decent consolidation phase in the recent past. Last week, the upper boundary of Rs 350 was finally broken with reasonably higher volumes.
In addition, the ‘RSI-Smoothened’ oscillator has also surpassed the 70 mark; providing some credence to the move. We interpret the last three days’ small correction as a good buying opportunity.
One can look to go long for a target of Rs.378 in coming weeks. The stop loss needs to be fixed at Rs.341.
United Spirits: Sell| LTP: Rs 607.95| Target: Rs 582| Stop Loss: Rs 621| Return 4%
This remains to be our preferred shorting candidate since the last couple of weeks. The confirmation of a near-term weakness was seen last week when it decisively sneaked below the ‘200-day’ moving average after nearly 10 – 12 months.
Last week, we recommended going short at around Rs 636 and our immediate target of Rs 605 has already been met. But, considering its weak structure, we extend the target to Rs.582 and hence, one can look to go short or revise stop loss for the existing trade at Rs.621.
Analyst: Dinesh Rohira, founder & chief executive officer, 5nance.com
Adani Enterprise: Buy | Target: Rs. 146 | Stop-loss: Rs. 124 | Return: 11%
Adani Enterprise traded in a positive trajectory on its weekly price chart post its correction from 52-weeks high. The scrip took strong support near its 52-weeks low.
On the weekly price chart, the scrip registered a solid bullish candlestick pattern indicating a reversal in the trend post upward breakout from long-term averages of 200-100-days backed by strong volume growth.
Further, the weekly RSI placed at 61 signals a buying regime at a current level along with positive cues from MACD which suggests an upward shift.
The scrip is likely to face resistance at Rs 150 and support is seen at Rs 118. We have a BUY recommendation for Adani Enterprise which is currently trading at Rs. 131.65
Prabhat Dairy: Buy | Target: Rs. 158 | Stop-loss: Rs. 135 | Return: 6%
Prabhat Dairy recently witnessed a reversal in trend favoring upward momentum after consolidating in multiple price range levels including a decline from 52-weeks high over the last six months.
The scrip revisited Rs 128 levels and formed a strong base support. It revered from that level to close above Rs 134 levels which is 200-days EMA levels. The positive breakout seen on weekly basis aided the scrip to form a long bullish candlestick pattern indicating a reversal in trend at the current level.
The weekly RSI placed at 61 signals a buying regime at a current level along with positive cues from MACD which suggests an upward shift.
The scrip has a support at 128 levels and resistance level at 172. We have a buy recommendation for Prabhat Dairy which is currently trading at Rs. 149.40
UPL: Sell | Target: Rs. 535 | Stop-loss: Rs. 584 | Return: 5%
UPL witnessed a sharp correction seen on the long-term chart. It breached its crucial support level of 200-days EMA on the downside and continued to trade lower amid selling pressure.
The scrip consolidated in a range of Rs 765 and Rs 606 levels, but last week it further slipped from this level which indicates sustain selling regime.
The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below important level indicating a sustained pressure.
The secondary momentum trend continued to indicate a negative signal with RSI slipping below at 27 coupled with the bearish outlook from MACD trend. The scrip is likely to face resistance around Rs 703 levels and crucial support at 381 levels. We have a sell recommendation for UPL which is currently trading at Rs. 562.55.
Analyst: Mazhar Mohammad, chief strategist – technical research & trading advisory, Chartviewindia.in
Britannia Industries: Buy| LTP: Rs 6,472| Target: Rs 6750| Stop Loss: Rs 6300| Return 4%
This counter appears to have registered a breakout above its 2-month old ascending channel with new lifetime highs. Interestingly, this breakout also occurred after a brief consolidation of 6 days around its lifetime highs.
Hence, positional traders should go long in this counter for a target of Rs 6,750 with a stop loss of Rs 6,300
Mindtree: Buy| LTP: Rs 1,065| Target: Rs 1,126| Stop Loss: Rs 1017| Return 5.7%
A couple of days back this counter registered a breakout from its downward sloping channel which was in progress since last February. Hence, the current weakness in this counter should be used as an opportunity to create fresh longs for an initial target of 1126. Stop suggested for the trade is 1017
Indian Oil Corp: Buy| LTP: Rs 159.30| Target: Rs 170| Stop Loss: Rs 154| Return 7%
After the recent correction from the highs of Rs 177, this counter appears to have formed a strong base around Rs 150 where it is attracting huge buying interest as pointed out by long lower shadows on weekly charts.
Hence, sustaining above this level it can initially target Rs 170. A stop-loss suggested for the trade is a close below Rs 154.
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.
First Published: Jul 16, 2018 5:11 PM IST