Nifty50 lost 5.6 percent, or over 600 points, for the week ended October 5 to record its biggest weekly loss in the last 26 weeks. The Nifty index has been making lower highs and lower lows on the weekly scale and has now fallen by around 1,500 points in the last 5 weeks.
The index formed a bearish candle on daily charts on Friday and on the weekly scale as well which suggests that bears are having a tight grip on the market.
The Nifty index broke below major levels like 61.80 percent retracement at 11,650, maximum Put OI congestion zones of 11,500-11,450, 50 Weekly EMA and is now gradually drifting lower with the higher pace of selling pressure, suggest experts.
India VIX is now hovering around 19.73 and is moving upwards from last three consecutive weeks which is not a good sign for the bulls. On the options front, maximum Put OI is placed at 10,500 followed by 10,700 strikes while maximum Call OI is at 11,000 followed by 11,200 strikes.
“As long as it holds below 10,500 zones, Nifty may continue to extend its weakness towards 10,200 and may even retest 10,000 levels while on the upside, medium-term hurdle is shifting from 10,850 to 10,650 zones,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Moneycontrol.
“Most of the sectorial indices were in pressure in the last week while many heavyweights also fell down sharply. Now till index doesn’t take a pause from selling mode by crossing any immediate hurdle zones, don’t go for bottom fishing, as sharp cut of 15 percent from higher zones have changed the price structure of most of the heavyweight and mid and small caps stocks, upside seems to be capped for time being,” he said.
Selective IT, few metal and pharma counter may see some support based buying while most of the auto, FMCG, oil and gas, mid and small cap stocks may continue their downward journey.
Here is a list of top 10 short-term money making ideas from different experts which could give 5-28 percent return in the next 1-6 months:
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Ashok Leyland: Buy| LTP: 108| Target: Rs 132| Stop Loss: Rs 103| Return 28 percent
Despite high volatility in the market, this counter was moving flat for the last couple of trading sessions suggesting that it might have bottomed out. Hence, post monetary policy if this counter is sustaining above Rs 110 levels on closing basis, one can initiate long positions for targets of Rs 132.
Bajaj Auto: Buy| LTP: Rs 2,544| Target: Rs 2,940| Stop Loss: Rs 2,528| Return 15 percent
Interestingly, for the last four weeks, this counter is moving in a horizontal fashion after taking support around Rs 2,600 levels when broader market was under pressure.
Hence, if the stock manages to reclaim Rs 2,600 and sustain then it can head for an initial target of Rs 2,940 levels. Hence traders are advised to buy now and accumulate further on declines.
BHEL: Buy| LTP: 70.60| Target: Rs 83| Stop Loss: Rs 65| Return 18 percent
A strong up move was seen in the current turbulent week which suggests that this counter has decoupled with market volatility and can head higher based on its own strength.
Hence positional traders are advised to buy the stock now and in declines up to Rs 69. As long as it sustains above Rs 66 levels, it can head for an initial target of Rs 83.
Analyst: Rajesh Palviya, Head – Technical & Derivatives Analyst, Axis Securities
Aurobindo Pharma: Buy| LTP: Rs 743| Target: Rs 810| Stop Loss: Rs 735| Return 9 percent
The stock has given a down sloping trend line breakout at Rs 760 levels on the closing basis with an increase in volumes. The stock is trading above 20, 50 and 100-day SMA. The daily RSI and Stochastic both are in a positive territory indicating further upside.
In the month of Sept., the stock has marked a low (Rs 698) which coincides with 50 percent Fibonacci retracement support (Rs 696) of the previous rally (Rs 565-827), which remains a crucial support.
On the monthly chart, the stock is moving in a higher Top higher Bottom with a huge spurt in volumes indicating increased participation on the rally. The monthly indicators RSI and Stochastic both are confirming the strength as well as upside momentum.
Hindalco Industries Ltd: Buy| LTP: Rs 240| Target: Rs 270| Stop Loss: Rs 239| Return 12 percent
The stock has decisively broken its 6-months consolidation range of 230-250 levels on the closing basis indicating an upward breakout.
On the monthly chart, the stock has formed a strong base around 210-200 levels which remains a crucial support zone. The stock has crossed its 200-days SMA indicating bullishness.
The daily, as well as monthly RSI and stochastic, are in a positive territory indicating further upside.
NIIT Technologies: Buy| LTP: Rs 1,158| Target: Rs 1,280| Stop Loss: Rs 1,130| Return 10 percent
The stock has given a downward sloping channel breakout at Rs 1,150 levels on the closing basis with an increase in volumes. Since May 2018, the stock has managed to hold its major support zone around Rs 1,060 -1,000 levels which signal strength at lower levels.
The stock has closed above its 100-day SMA. The daily RSI and stochastic both are in a positive territory indicating further upside.
Brokerage Firm: SMC Global Securities
Infosys: Buy| LTP: Rs 721.85| Target: Rs 765| Stop Loss: Rs 680| Return 6 percent
The stock closed at Rs 721.85 on 05th October, 2018. It made a 52-week low at Rs 452 on 06th October 2017 and a 52-week high of Rs 754.90 on 1st October 2018. The 200-day Exponential Moving Average (EMA) of the stock on the daily chart is currently at Rs 627.05.
The short, medium and long-term bias are positive for the stock as it is continuously trading in “Rising Channel” on the weekly charts, which is considered to be bullish.
Last week, there was a panic selling witnessed across the board but the stock ended flat on the back of buying force, which indicates buying is aggressive for the stock.
Technical indicators like RSI and MACD are also looking positive for the stock so one can initiate long in the range of Rs 710-715 levels for the upside target of Rs 755-765 levels with a stop loss below Rs 680.
Analyst: Manav Chopra, CMT, Head of Research, Indiabulls Ventures
Axis Bank: LTP: Rs 568| Target: Rs 650| Stop Loss: Rs 530| Return 14 percent
The recently Axis Bank has broken out of the long-term triangle on the weekly charts, which is now retesting its earlier resistance levels.
These levels are now likely to act as strong support. One can buy Axis Bank from these levels as the structure is bullish and the risk reward is favourable. Investors can initiate buy with a target at Rs 650 while a stop loss can be placed at Rs 530.
UPL: Buy| LTP: Rs 598.20| Target: Rs 700| Stop Loss: Rs 560| Return 17 percent
UPL has recently formed a Morning Star candlestick pattern on the weekly charts, which is now nearing its monthly support levels. Supports are placed around Rs 550 - 565 levels.
One can take a long position in UPL while keeping a stop loss below Rs 560 levels, and a short-term target can be maintained at Rs 700 levels
Cipla: LTP: Rs 634.55| Target: Rs 730| Stop Loss: Rs 610| Return 15 percent
Cipla is currently holding its monthly breakout levels and the momentum oscillators are showing bullish signs. In this volatile market, one should focus on pharma stocks.
The recent dip should be taken as buying opportunity in Cipla, for the short-term target can be maintained at Rs 730 levels while placing a stop loss below Rs 610.
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.