Traders should book profit on any bounce towards 10,800 and maintain few shorts also. In the case of decline, 10,350-10,500 zone would act as support
Jayant Manglik
The markets managed to end higher for the third successive week amid volatility. The beginning was downbeat, tracking weak global cues and local headwinds.
However, things gradually turned in favour of bulls, as a result, the benchmark index closed around the week’s high and reclaimed 10,700 at the close.
Though markets have made a decent recovery in the recent past, we’re still not out of woods. The Nifty has strong hurdle placed at 10,800 and sustainability above that zone seems difficult.
Traders should book profit on any bounce towards 10,800 and maintain few shorts also. In the case of decline, 10,350-10,500 zone would act as support.
We advise keeping stock-specific trading approach and prefer index majors over mid-cap and small-cap counters for trading.
Here is a list of top three stocks which could give 7-10 percent return in the next 1 month:
Escorts: Buy| Target: Rs 745| Stop loss: Rs 640| Return: 10.4 percent
Escorts after the breakout from the bullish reversal pattern have been hovering in a range for the last two weeks. The stock has been holding above the support zone of neckline area around Rs 640.
There are indications of a fresh surge in the near future. We advise initiating fresh longs position in the given range of Rs 665-675. It closed at 672.45 on November 19.
IndusInd Bank: Buy| Target: Rs 1,675| Stop loss: Rs 1,470| Return: 8.7 percent
IndusInd Bank swiftly rebounded after testing its support zone of long-term moving average (200-EMA) on the weekly chart in early November. It has spent nearly two weeks in consolidation and is now look all set for further up move.
We advise traders to use this phase and accumulate fresh longs in the mentioned zone of Rs 1,530-1,540. It closed at 1,537.95 on November 19.
Oil & Natural Gas Corporation: Sell Futures| Target: Rs 144| Stop loss: Rs 162| Return 7.7 percent
ONGC has been underperforming for the last four years and has been witnessing selling pressure on every bounce. Currently, it is trading on the verge of a breakdown from a consolidation range.
There are indications of a sharp plunge. We advise creating fresh shorts in the given range Rs 156-158. It closed at 154.35 on November 19.
The author is President, Religare Broking.
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
