If the market sustains above 11,750 on April 25, we may see the index moving into a new high zone in the short term.
Rupak De
Nifty50 witnessed a spectacular rally on Wednesday as it reclaimed 11,700 levels. The latest price action has helped Nifty to get back into the rising wedge which it broke two days back.
On the daily chart, a decent green candle is visible. The index found support at the consolidation low on the daily chart which pushed the index higher.
The steep rally in the index could not pull the head of the momentum indicator RSI (14) as the daily RSI is in bearish crossover even after a smart rally in the index.
The Nifty has managed to close the gap of the bearish island reversal pattern which invalidates the said pattern.
Now, if the market opens on a positive note on Thursday and sustains above 11,750 we may see the index moving into a new high zone in the short term.
On the other hand, a negative start on Thursday is likely to pull the index back heavily. Support is seen at 11,540, below which the index may drift down towards 11,400-11,350. On the other hand, resistance is seen at 11,750, and above 11,750, we could see a rally towards 11,850-11,900.
Here are three stocks that could give 8-10% return in the next 1 month:
M&M Financial Services: Buy| LTP: Rs 433.35 | Target: Rs 463| Stop Loss: Rs.416| Upside 8%
The stock has moved above the falling trendline on the daily chart leading to a bullish set up for the very short term. Also, the stock opened slightly gap-up during the last day and maintained an outright bullish sentiment as the price did not come back to the fill the gap during the day.
The daily RSI as well MACD is in a bullish crossover and rising. Traders can accumulate the stock in the range of Rs 430–435 for the target of Rs 463 and a stop loss below Rs 416.
Piramal Enterprises: Buy| LTP: Rs 2565 | Target: Rs 2770 | Stop Loss: Rs 2449| Upside 8%
On the daily chart, the stock has halted at the falling trend line found by joining the lows of and March 14 and 25, 2019.
In addition, 50-days EMA has acted as the initial support to the falling price. Moreover, a morning Doji Star pattern is visible on the daily chart. Traders can accumulate the stock in the range of Rs 2560–2570 for the target of Rs 2770 and a stop loss below Rs 2449.
Dishman Carbogen: Buy| LTP: Rs. 225.30| Target: Rs 247| Stop Loss: Rs 214| Upside 10%
The stock has found support at the rising trendline on the daily chart and closed higher. In addition, the stock has closed with an engulfing pattern on the daily chart which is a bullish set up when formed after a correction.
Traders can accumulate the stock in the range of Rs 224–227 for the target of Rs 247 and a stop loss below Rs 214.
(The author is a Technical Research Analyst at Bonanza Portfolio Ltd.)
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