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Podcast | Stock picks of the day: Nifty could find support around 11,050-10,800 levels

October 07
09:29 2019

Ajit Mishra

It turned out to be a bad week for participants as majority of them were expecting the momentum to continue.

Among benchmark indices, the Nifty lost nearly three percent on October 4 and settled around the week’s low, which indicates a further decline, thanks to the weak trend in banking space, while other sectors are trading with a mixed bias.

The Nifty could find support around 11,050-10,800 levels, with the 11,250-11,400 zone likely to act as a hurdle.

Here is a list of top three stocks which could offer 4-10 percent returns in the next three-to-four weeks:

HCL Technologies: Buy | LTP: Rs 1,079.10 | Target: Rs 1,130 | Stop Loss: Rs 1,045 | Upside 4%

Initiation range: Rs 1,065-1,075

HCL is one of the strongest counters in the IT pack and it is currently hovering around the support zone of multiple moving averages on the daily chart. ??Besides, it is trading in an up-trending channel and recently tested the lower band of the same.

Put together, we expect a gradual rise from here on thus we advise creating fresh longs in the given range.

Biocon: Buy | LTP: Rs 231.10 | Target: Rs 256 | Stop Loss: Rs 220 | Upside 10%

Initiation range: Rs 228-232

Biocon has witnessed a decent correction from the top and has now retraced closer to its major support zone of the long term moving average i.e. 200-EMA on the weekly chart.

It has been consolidating around the same for the past two months and now trading on the verge of a sharp rebound from that zone.

Further, oversold positions combined with the existence of major support is adding to the positivity. We advise creating fresh longs in the mentioned zone.

Bharat Heavy Electrical: Sell Oct Futures | LTP: Rs 46 | Target: Rs 43 | Stop Loss: Rs 51 | Downside 6%

Initiation range: Rs 48-49

BHEL has been trading in a downtrend for the last several years and there’s still no change in trend. ??Though it had made several attempts in the past but in vain as it failed to surpass the critical hurdles and resumed its downtrend.

Currently, it is trading on the verge of a fresh breakdown from a consolidation range. We thus suggest initiating fresh shorts in the given range.

(The author is Vice President Research, Religare Broking)

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