Next crucial target on Nifty placed at 9,900 on downside
The Nifty is likely to consolidate within the range of 10,200 and 10,550. A decisive breakout on either side will confirm the future trend. A breakdown of lower band of 10,200 may trigger a selling pressure which may take the index towards 9,900.
On the other hand, 10,700 may act as immediate resistance, and a sustained trades above this level may induce further rally towards 11,000.
On Wednesday, the Nifty had started the session on a higher note and surpass the previous two day’s high towards the closing on Wednesday. For the last three days, the index has been making a basing formation and is trading above its 100-EMA on the weekly frame.
The last two candles have formed bullish above the stomach candle stick pattern which suggests further strength. In the market, IT stocks ended the session as worst performer whereas financial services stocks outperformed the benchmark index for the day.
The volatility index India VIX witnessed a drop of -9.33 percent during the day. On the options front, 11000 and 10800 CALLs added most open interest (OI) whereas 10000 and 10500 PUTs ended as most active.
Here is a list of top three stocks which could give 7-9 percent return in the next 1 month:
Voltas: Buy| CMP: Rs 515.55 | Target: Rs 560 | Stop Loss: Rs 490| Return 9%
The stock after a steep correction has found the support of its trendline on the weekly chart. On the daily chart, the price has completed bullish Anti-Shark harmonic pattern which suggests a possibility of a bullish reversal in the stock.
The previous two candles have formed a bullish Harami pattern which suggests the possibility of bullish reversal. A bullish crossover in the daily RSI is being witnessed which may induce a positive shift in bullish momentum in the stock price.
Traders can accumulate the stock in the range of Rs 512.50-518 for the target of Rs 560 with a stop loss below Rs 490.
Glaxosmithkline Consumer: Buy | CMP: Rs 6,804.30 | Target: Rs 7,340| Stop Loss Rs 6,500| Return 8%
After prolong corrective phase the stock has been consolidating at the lower levels. On the daily chart, a bullish engulfing has formed which suggests the possibility of a bullish reversal.
Moreover, the price has completed bullish Anti-cypher harmonic pattern on the daily timeline which suggests a possibility of a bullish reversal in the stock.
Traders can accumulate the stock in the range of 6775-6835 for the target of 7340 and a stop loss below 6500.
Infosys: Sell | CMP: Rs 700.45 | Target Rs 648 | Stop Loss: Rs 732 | Return 7.50%
The stock price has given a breakdown of a rising wedge pattern on the daily time frame which suggests increasing pessimism in the stock. The fall in price was backed by a rise in volume.
Furthermore, the stock has violated its trend line support on the weekly chart. The momentum oscillator RSI (14) is in a bearish crossover and a fall suggests a continuation of bearish momentum.
Traders can accumulate the stock in the range of 706-693 for the target of 648 and a stop loss above 732.
Disclaimer: The author is a Technical Research Analyst at Bonanza Portfolio Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.