Nifty has strong support around 10,300; 5 stocks which can give up to 14% return

Epic Research

The Nifty50 hit a new all-time high and touched the 10,490 mark as it added marginal gains to close at 10,451 on Monday. Late minute profit booking dragged the market down and paired some gains as it ended making a Spinning top formation on daily chart.

Profit booking in banking space with mild corrections in infra and select blue-chips weighed on sentiments as it loses breath while inching upwards.

A spinning top is usually characterized by an uptrend which is in place and a notion of a bullish move. Spinning top has a small body with wider wicks depicting a higher range of trading between the daily high and low while a small body indicates indecisiveness and exhaustion on the higher side as bulls lose the stronghold.

The Nifty remains in an uptrend though a lot of cautiousness is now the need of the hour. Multiple confluences around 10,500 - 10,600 in Nifty is observed and it may be tough for markets to breach it in one go.

Any sluggishness in the momentum observed will be an opportunity for bears, trapped or not, to enter and change the momentum.

The broader range of the market remains intact at lower side at 10,300 where we have seen base formation for the short term. We see upside resistance in the area of 10,550- 10,600.

The current move from the previous swing has been very higher as compared to the previous month since it has almost added 900 points. The move was largely contributed by BankNifty,

Select blue-chips like Maruti, SBI, ITC and so on along with upbeat metal and infra space. Any dips or profit booking in above space will be an indication of the reversal in short term.

We remain cautious on the closing basis and avoid any dips for now as we will be waiting for Nifty to breach 10,600 on the closing basis with better volumes.

Here is a list of top five stocks which could give up to 14% return in short term:

Wipro: BUY| Target Rs335| Stop Loss Rs280| Return 12%

The stock is coming out of a long pattern that has been observed since 2016. It has recently formed a rounding bottom and is on the verge of a breakout of multiple patterns on the higher time-frames.

On the daily chart, it has successfully closed above its short-term moving averages along with a positive crossover of EMA's. We expect this stock to do well in coming days with a possible move towards Rs335 zones.

Majesco: BUY| Target Rs570| Stop Loss Rs498| Return 9%

The stock has recently corrected from its 52-week highs and is sustaining above the short-term moving averages. It has been trading in a very narrow range and is seeing accumulation on lower time frames.

The stock has been in a triangle formation which may push the stock in upside territory till 570. We expect the stock to form a short-term bottom around Rs510 - 520 and a stop below Rs498.

Phillips Carbon Black: BUY| Target Rs1150| Stop Loss Rs960| Return 14%

The stock has given a fresh breakout after a long consolidation. It has been trading in a narrow range since October with highest volume participation in last few months.

The stock is in the overall higher top and higher bottom formation and we expect this consolidation to be acting as the short-term bottom. The stock is on its way to a new top in the near-term with price appreciation to Rs1120 - 1140 zone.

Aditya Birla Capital: BUY| Target Rs235| Stop Loss Rs195| Return 14%

The stock has reversed on the short-term charts after profit booking and consolidations. A higher volume participation is observed in last few days which is highest in last few weeks indicating the trend has resumed on an upward trajectory.

The momentum indicators also show divergence which is positive and price may sustain towards 235 in coming sessions.

Bharat Forge: BUY| Target Rs755| Stop Loss Rs680| Return 6%

It has cleared its long-standing hurdle of previous tops of 2015 around 700 levels and been able to sustain and close above it for few trading sessions.

Prices have given a long-term breakout and sustaining the point of inflection around 680 will further boost prices to a higher zone of 755 in short to medium term with a stop below Rs680.