Top 10 stocks below Rs 1000 which could give up to 17% return in short-term

The Nifty50 closed above its crucial psychological resistance level of 10,400 last week and if geopolitical tensions escalate there could be a possibility that the index could retest 10,300-10,200 levels.

The real action was seen in the broader market that offered decent trading opportunities for market participants. There has been a steady move in the Nifty during the week but there was one crucial factor which made analysts cautious about the recent up move and that was negative market breadth.

The index did have a touch and go moment with 10,500 and if it holds above 10,450 levels on Monday there is a higher possibility of the index reclaiming 10,600 levels soon.

“Considering the recent development in some of the heavyweight counters, a possibility of extending this move towards 10580 – 10640 cannot be ruled out. But, now, we will not be as convinced as we were a couple of weeks ago,” Sameet Chavan- Chief Analyst, Technicals and Derivatives at Angel Broking told Moneycontrol.

“We would certainly avoid aggressive longs and in fact, traders should ideally start liquidating long positions in a gradual manner. It would certainly be a prudent strategy to stay light with a stock specific approach,” he said.

Chavan further added that for the coming session, 10520 followed by 10580 would be seen as an immediate resistance zone; whereas on the downside, 10450 – 10355 are likely to act as crucial supports.

Here is a list of top 10 ideas with a price less than Rs1000 which can give up to 17% return in the short term:

Analyst: Sameet Chavan- Chief Analyst, Technicals and Derivatives at Angel Broking

Glenmark Pharma Ltd: BUY| Target Rs621| Stop Loss Rs 555.70| Return 12%

This ‘Pharmaceutical’ counter has been a laggard for more than two years now. Recently, this prolonged correction halted tad above the 500 mark after forming a strong base for nearly 6 – 7 weeks.

The stock prices have finally managed to burst through the recent congestion zone. If we take a glance at the volume activity, it has certainly picked up substantially during the last few days.

Thus, we expect the stock to continue to move higher and eventually climb towards our near-term target of Rs.621. Traders are advised to follow strict stop loss below Rs.555.70.

The Indian Hotels Ltd: BUY| Target Rs149| Stop Loss Rs132| Return 8%

This has been a steady mover and generally is not considered as a trader’s favorite counter due to its slow-moving nature. The daily chart now depicts a good bullish candle along with sizable volumes.

This indicates a possible breakout from the recent hurdle of 140. Considering the higher degree up trend, we anticipate this price action to happen quite soon. One can look to go long in the stock for a target of Rs149 by following a strict stop loss below Rs.132.

Hindalco Ltd: SELL| Target Rs228| Stop Loss Rs244| Return 4%

This ‘Metal’ giant has given a decent recovery over the past couple of weeks. However, if we look at the weekly chart, we still believe that worse is not over for the stock.

The stock has now reached its previous breakdown point of 238 which coincides with a couple of key moving averages. Hence, the recent up move can be construed as a relief rally and from here.

We expect yet another attempt to slide in the near term. The short-term traders can look to sell for a target of Rs.228 by following a strict stop loss at Rs.244.

Analyst: Dinesh Rohira, Founder & CEO, 5nance.com

Indiabulls Venture Ltd: BUY | Target Rs349 | Stop-loss Rs306 | Return 10%

Indiabulls Venture continued to trade on a positive trajectory on its long-term price chart despite a weak market sentiment.

Further, the scrip made a decisive breakout from its upper price band during the last trading session to create the next leg of the rally. It also witnessed a robust growth in volume front with about 4x time its average volume.

On the weekly price chart, the scrip made a strong bullish candlestick pattern indicating a positive signal coupled with a positive cue on MACD trend.

Further, RSI level at 67 has a strong support for the momentum with price trading above its upper band.

The scrip is currently holding resistance level at 383.3 on its pivot points and support level at 288. We have a BUY recommendation for Indiabulls Venture which is currently trading at Rs. 317.35

Vakrangee Ltd: SELL | Target Rs123 | Stop-loss Rs145 | Return 7%

Vakrangee continued to consolidate on its weekly and monthly price chart after making a decent rebound near 285 levels, but failed to hold the level and slipped below its crucial support level placed at 160-155 levels.

Further, a Bollinger band signalled a price hitting lower band which is a negative trend. The scrip formed a strong bearish candlestick pattern on its weekly price chart with price trading below all the crucial levels.

Further, the secondary momentum indicator continued to indicate negative signal with RSI at 34 levels coupled with weak support from MACD indicator.

The scrip is facing a resistance at 194 levels and strong support at 112 levels. We have a SELL recommendation for Vakrangee which is currently trading at Rs. 132.75

Deepak Fertilisers Ltd: BUY | Target Rs392 | Stop-loss Rs360 | Return 5%

Deepak Fertiliser witnessed a robust momentum during last week’s trading session after consolidating over three months from the earlier peak and made a strong rebound from 288 levels.

The scrip made a crucial breakout from its 200-days EMA level indicating a reversal trend in its price chart. Further, Bollinger bands indicated a price hitting upper band which is a positive signal.

After closing with about 9 percent gain on weekly basis, the scrip made a bullish reversal candlestick pattern on its weekly price chart. Further, a weekly RSI at 55 indicated a sustained buying regime coupled with positive cues on MACD.

The scrip is now facing a resistance at 402 levels and support level at 355 on pivot points. We have a BUY recommendation for Deepak Fertiliser which is currently trading at Rs. 373.50

Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

Dewan Housing Finance: BUY| Target Rs587| Stop Loss 525| Return 7%

This counter which has underperformed in the last leg of up move appears to have resumed its rally after consolidating for the seven sessions in a small band of 545 – 526. Hence, traders can buy into this counter for a target of 587 with a stop below 525 on a closing basis.

Brokerage: ICICIdirect (time period 30 days)

D-Link Ltd: BUY| Target Rs126| Stop Loss Rs102| Return 17%

The share price of D-Link has registered a breakout above the bullish flag pattern signaling a positive bias. The breakout was accompanied by a strong volume of more than three times the 200-days average volume of 3 lakh shares per session indicating larger participation in the direction of the trend.

Thus, it supports the continuance of the positive trend. During the previous week, the stock witnessed a strong rebound from the support area of Rs81 and has rallied to Rs112 in just three sessions.

Post this, the index consolidated for the last three sessions during which it retraced its previous up move by just 23.6% signalling positive price structure.

We expect the stock to continue its current up move and test levels of Rs126 being the confluence of the 61.8% retracement of the entire decline (153–81) and high of February 2018 around Rs126 levels.

PNC Infratech Ltd: BUY| Target Rs205| Stop Loss Rs166| Return 17%

The share price of PNC Infratech remains in an uptrend forming a rising peak and rising trough on the weekly chart. The stock has rallied to an all-time high of Rs228 in December 2018. Since then, it has been in a corrective decline for the last three months.

The recent price activity suggests the corrective decline has approached maturity and the stock is likely to resume fresh up move.

The stock has recently rebounded from the support area of Rs150-155 being the confluence of the 52 weeks EMA and 80% retracement of the previous up move (Rs130 - 228).

The sharp up move in the last two weeks from the support area signals a reversal of the corrective trend and offers a fresh entry opportunity.

We expect the stock to continue with its current up move and test levels of Rs211 being the 80% retracement of the entire decline (228 – 148).

Godrej Properties Ltd: BUY| Target Rs850| Stop Loss Rs685| Return 17%

The share price of Godrej Properties was consolidating in a broader range of Rs728–859 over two months. During two months consolidation, the stock has taken support from the gap area on January 8, 2018, on multiple occasions, indicating sturdy base formation around Rs728.

Currently, it registered a breakout from falling trend line is drawn adjoining subsequent high of Rs912–849 supported by above average volumes, indicating termination of an intermediate correction.

Among oscillators, RSI found support from one-year long support base of 35 and pointing upward, confirming base formation.

The stock is likely to head higher in the near-term towards Rs850 as it is the placement of identical highs coinciding with an upper band of broader consolidation range of Rs859-728.