The momentum oscillator, relative strength index (RSI) has entered in a bullish crossover and currently staying above the 60 mark.
Achin Goel
Bonanaza Portfolio
The Nifty started off slightly higher and remained volatile throughout the session before closing flat. After a breakout above the trend line on the daily chart, the index has shown signs of exhaustion.
On the daily chart, Nifty formed a Doji kind of formation which suggests halt of the current rally in the market. The momentum oscillator, relative strength index (RSI) has entered in a bullish crossover and currently staying above the 60 mark.
On the options front, 11,000 call has seen highest active participation, whereas 10,600 put have remained most active. Going forward, the market may remain positive. At the higher end, Nifty may face strong resistance at 11,000.
Sustained trades above 11,000 will induce further rally in stocks. On the lower-end, support is seen at falling trend line which is currently pegged at 10,840.
Here is a list of 3 stocks that could return 10-12 percent in the next 1-2 months:
Divi’s Lab: BUY| CMP: Rs. 1122.20| Target Rs.1234|Stop Loss Rs.1064|Return 10%
The stock price has moved above its week-long consolidation pattern on the daily chart. The recent breakout signifies growing optimism in the stock which is expected to take the price upward in the near-term.
In addition, the price has moved above 50-DMA which again exhibits a bullish setup. Traders can accumulate the stock in the range of Rs 1,110-1,125 for the target of Rs 1,234 with a stop loss below Rs 1,064.
ITD Cementation: BUY| CMP: Rs. 135 | Target Rs.150|Stop Loss Rs.128|Return 11%
The price has moved above the previous swing high on the daily chart which suggests reversal of the previous trend. Moreover, the price has moved above the 21-EMA on the daily chart.
The momentum indicator, RSI (14) has shown a positive divergence on the daily chart which suggests momentum to remain positive in the near to short-term. Traders can accumulate the stock in the range of Rs 133-135 for the target of Rs 150 with a stop loss below Rs 128.
Cox & Kings: BUY| CMP: Rs. 216.55 | Target Rs.243|Stop Loss Rs.204|Return 12%
The stock price has given a breakout above falling trend-line which indicates a reversal of the previous falling trend.
In addition, the price has moved above 21-EMA as well as 50-SMA on the daily chart which suggests growing optimism in the stock.
Daily RSI (14) is in bullish crossover and rising. Traders can accumulate the stock in the range of Rs 212-217 for the target of Rs 243 with a stop loss below Rs 204.
Disclaimer: The author is Head of Wealth Management and Financial Planning, Bonanza Portfolio Ltd. The views and investment tips expressed by investment experts on Moneycontrol are his own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.