These 10 moneymaking ideas could make you richer by up to 22% in next 30 days

Kshitij Anand

The Nifty closed the May 4 week on a muted note with small and midcap indices falling over two percent each. The index held on to its crucial support placed at 10,600 on Friday, but closed below this level fuelled by selling pressure, experts said.

The index has a string of resistances placed between 10,700 and 10,800 levels which could act as a crucial resistance level in the May series. Hence, technical experts advice investors to remain stock specific as trading in benchmark indices could turn rangebound.

On Friday, the index touched 10,700 and continued its journey towards 10,800 levels, but profit booking at higher levels pulled the index down to 10,600 levels towards the close of the truncated week. “Traders looked a bit sceptical around 10,800 levels and started liquidating their longs in a rush (especially in high beta midcaps) during the second half of the week. This resulted in some nervousness in the market and hence the index corrected back to 10,600 levels,” Sameet Chavan, Chief Analyst, Technicals and Derivatives at Angel Broking, said.

Though Chavan expected profit booking at higher levels, he was quite surprised by the velocity at which a few counters took a hit.

The index is currently trading around its recent breakout points and hence possibility of a bounceback towards 10,700–10,720 cannot be ruled out. If it keeps gyrating in the range of 10,600–10,800, experts feel the ideal strategy would be to concentrate on individual stocks.

Chavan stated that 10,530–10,500 would be seen as a make or break support zone. “Any sustainable move below this crucial junction would reverse the short-term tide and lower levels can be expected in the near-term.”

Here is a list of top 10 stocks from various experts that could return up to 22% in the short-term:

Wockhardt Ltd: Buy| Target: Rs 863| Stop loss: Rs 788| Return 7.6%

We have been quite upbeat on this stock since the last couple of weeks. However, the stock is yet to perform as per our expectations. It showed some life during the week; but, eventually, all intra-week rallies get sold into.

Despite this, we continue to keep this stock as our preferred pick within the ‘Pharma’ space. The reason behind this its overall structure, which looks quite sturdy and we expect it to burst through this congestion period very soon.

We recommend buying the stock for a near-term target of Rs 863. Traders can shift their stop losses at Rs 788 on a closing basis.

Crompton Greaves Consumer Ltd: Buy| Target: Rs 275| Stop loss: Rs 228| Return 12%

Post the January top, the stock prices corrected sharply towards the 200-days SMA placed around Rs 235 – 230. This was followed by a long consolidation for nearly 10 weeks.

Finally, after forming a strong base, the stock has confirmed a breakout from this consolidation range with reasonably higher volumes.

If we look at the weekly chart, it appears as if the stock is gearing up for a next leg of the rally. Hence, one can look to go long for a target of Rs 275 by following a strict stop loss of Rs 228.

Vedanta Ltd: SELL| Target: Rs 265| Stop loss: Rs 292| Return 6%

Towards the fag end of the January month, we turned cautious on the entire ‘metal’ space. Our stance proved valid as we witnessed a sharp correction of about 17 percent post the ‘Union Budget’.

The major draggers in this fall were ‘Tata Steel’ and ‘Hindalco’. Yes, ‘Vedanta’ did have a rub-off effect of this; but the quantum of correction as compared to its peers was quite less. But now, we can see some early signs of further weakness in the near-term.

The stock prices have been consistently trading below the 200-SMA since last 3 – 4 days and are pointing breakout in the southward direction. Hence, with anticipation, one can look to go short for a target of Rs 265 by following a strict stop loss of Rs 292.

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

Crompton Greaves Consumer Electricals Ltd: Buy | Target: Rs 270 | Stop loss: Rs 230 | Return 10%

Crompton Greaves is trending higher on its weekly price chart post its correction during the previous session and took a strong short-term support at Rs 220 levels.

Despite a weak market breadth, the scrip managed to decisively breakout from its short-term crucial level placed Rs 232 coupled with strong volume growth above its daily average levels.

On the weekly price chart, the scrip registered a strong bullish candlestick pattern coupled with the solid bullish pattern on last closing session, indicating a positive signal.

Despite a neutral divergence on RSI trend at 53 levels, the MACD indicated a positive crossover coming in next few sessions. The scrip is currently holding resistance level at 283 on its pivot points and support level at Rs 219. We have a BUY recommendation for Crompton Greaves which is currently trading at Rs 245.10

Orient Cement Ltd: Recommendation: Sell | Target: Rs 129 | Stop loss: Rs 143 | Return 6%

Orient Cement witnessed a sustained pressure at a higher level around Rs 148 levels coupled with prolonging fall on its monthly price chart despite attempting to rebound.

After registering a 52-week high at Rs 183 level during the past month, a weak vindication dragged the scrip below crucial levels. Last week, it slipped from 200-days EMA levels placed around Rs 141 levels indicating a negative momentum.

The scrip formed a strong bearish candlestick pattern on its weekly price chart as price continued to trade below crucial levels.

Further, the secondary momentum indicator continued to indicate negative signal with RSI at 39 levels coupled with weak support from MACD indicator.

The scrip is facing a resistance at 157 levels and strong support from 52-weeks low at 128 levels. We have a SELL recommendation for Orient Cement which is currently trading at Rs 137.90

Just Dial Ltd: Recommendation: Buy | Target: Rs 458 | Stop loss: Rs 420 | Return 5%

After making a sharp correction from the upper band of Rs 607 levels on its daily price the, Just Dial witnessed a strong rebound in last week’s trading session with a positive momentum.

The scrip witnessed a relative breakout from its short-term moving average in the last session coupled with strong daily-volume breakouts which signal a positive trend buildup.

After closing with about 14 percent gain on an intraday basis, the scrip made a bullish reversal candlestick pattern on its daily price chart.

Further, a weekly RSI at 47 shifted upward from the previous level indicating a buying regime coupled with a positive turnover on MACD.

The scrip is facing a resistance at Rs 483 levels and support level at 394 on pivot points. We have a BUY recommendation for Just Dial which is currently trading at Rs 435.75.

Brokerage: ICICIdirect.com

CEAT: Buy| Target: Rs 1840| Stop loss: Rs 1525| Return 22%

The share price of Ceat has been consolidating in a broader range of Rs 1,413 – 1,666 in the past three months. This overall consolidation has been taking a shape of a right shoulder of a potential inverted head and shoulder pattern.

The placement of an ‘Inverted Head and Shoulder’ pattern is a bullish reversal pattern, indicating termination of a bear trend.

The recent formation of the right shoulder of an inverted head and shoulder pattern is supported by the strong volume of almost 2x the 50 days average volume of 6 lakhs, thus offering a fresh entry opportunity to ride the next leg of up move.

We believe the stock has strong support around | 1525 being the confluence of:

a) The placement of right shoulder low of Rs 1,529 levels

b) The 50% retracement of previous major up move from Rs 1,413– 1,666, at Rs 1,539

We expect the stock to resolve out of a potential inverted head and shoulder pattern and head towards our target of Rs 1,840 being the 123.6% external retracement level of the previous decline (Rs 1,684- 1,413).

The call was first initiated on 2nd May, and the time horizon is 30 days.

Visaka Industries Ltd: Buy| Target: Rs 875| Stop loss: Rs 745| Return 13%

The share price of Visaka Industries has been trading in an upward sloping channel (I) formation, and over the past three months, the stock found support from 200-DMA on multiple occasions, indicating buying demand near key value area of 200-DMA

Last week, the stock recorded breakout from a couple of weeks consolidation supported by heavy volumes, indicating acceleration of upward momentum.

Among oscillators, MACD indicator continues to inch upward, indicating positive momentum. We believe the stock is likely to head higher in the near-term towards Rs 875 as it is the confluence of:

a) The placement of 161.8% extension level of current up move drawn adjoining low of Rs 588 followed by Rs 613 and projected form a high of Rs 746, placed at Rs 880.

While intermediate support remains at Rs 745 being the recent consolidation breakout level

Recommendation initiated on i-click on April 27, 2018, and the time horizon is 30 days.

Royal Orchid Hotels Ltd: Buy| Target: Rs 259| Stop loss: Rs 205| Return 21%

The share price of Royal Orchid Hotels has recently registered a bullish flag breakout with a strong volume of almost 10x the 50-weeks average volume of 6 lakhs share per week thus offering a fresh entry opportunity to ride the next up move in the stock.

The stock has recently rebounded from the major support area of Rs 170 being the confluence of:

a) The rising 50 days EMA currently placed at Rs 155 levels

b) The 50% retracement of previous major up move from Rs 100 - 229

Among oscillators, MACD indicator continued its northbound journey and is seen diverging from its signal line indicating strong momentum

We expect the stock to maintain positive bias and head towards Rs 259 levels being the 138.2% retracement of the previous decline (Rs 229 -157)

Recommendation initiated on i-click on April 24, 2018. Time horizon is 30 days.

Majesco Ltd: Buy| Target: Rs 632| Stop loss: Rs 515| Return 15%

The share price of Majesco found support from 200-DMA and since then, it has been inching upward. Over the last six weeks, the price action has been captured in a well-defined upward sloping channel formation.

On the daily chart, the stock recorded a breakout from ‘Flag’ pattern, indicating a continuance of bull trend. This, in turn, helped the stock to register a breakout from rising channel formation

Among oscillators, MACD indicator continued its northbound journey after witnessing bullish crossover above zero line, indicating an acceleration of upward momentum

We believe the stock is likely to head higher in the near-term towards Rs 632 as it is the confluence of:

a) The placement of external retracement (123.2%) level of last leg of decline Rs 604 – 441, placed at Rs 642

b) The implicated target of upward sloping channel, placed around Rs 625 = (552- 480) + 552))

While intermediate support remains at Rs 515 being the lower band of the flag.

Recommendation initiated on i-click on April 23, 2018. The time horizon is 30 days.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.