'Maintain buy on dips strategy, bet on these 3 stocks for 23-50% return'

Nifty continued to fly northwards, and managed to give life high closing above crucial psychological levels of 14,000. At the same time flat bottom green Heikin-Ashi candles on a daily and weekly time frame indicate the continuation of the positive trend.

GANN square arc resistance and Fibonacci projection levels are standing around 14,300. This level also coincides with the potential target suggested by the Elliott wave count of the current market structure. As per Elliott wave, Nifty is progressing in wave 'III' of wave 'V'.

Moreover line of parity, 5 weekly SMA and swing low are standing around 13,650 levels which can act as crucial support in case of any minor correction. The majority of the oscillator indicators are placed in overbought zones suggesting some minor correction in the coming days. Positional traders should maintain buy on dips strategy keeping 13,650 levels as an early sign of trend reversal.

Bank Nifty

Although the banking index was trading in a tight range in the last week, it has managed to give closing above the previous week's high indicating bullish bias. As the banking index is trading above crucial resistance marks of 31,000, chances of hitting life high levels of 32,500 cannot be ruled out. Immediate support is standing around 30,500.

Here are three technical recommendations to buy for upto 50 percent return in short term:

Bharat Heavy Electricals: Buy Around Rs 37.50 | Target: Rs 56 | Stop Loss: Rs 31 | Upside: 50 percent

Stock has maintained strong support near the Rs 31-32 zone and current sustainability above all significant averages has improved the bias. It has also formed a positive candle formation on the daily chart with higher highs-lows from three consecutive days. The RSI also has indicated a trend reversal signal a buy. With the chart looking attractive, we suggest buying this stock around Rs 37.50 for a target of Rs 56, while keeping the stop loss of Rs 31.

Mahindra & Mahindra: Buy Around Rs 730 | Target: Rs 960 | Stop Loss: Rs 640 | Upside: 31 percent

This counter appears to have registered a clean break out of the consolidation zone on the daily chart. A strong bull candle with decent volume is showing more upside moves in the coming sessions. If the stock closes above Rs 750 levels, it should eventually head higher towards its initial range breakout target of Rs 960. For the time being, positional traders are advised to buy around Rs 740 into this counter for a target of Rs 960, with a stop below Rs 640 on a closing basis.

Indus Towers: Buy Around Rs 235 | Target: Rs 290 | Stop Loss: Rs 209 | Upside: 23 percent

Scrip spurted from a low of Rs 224 and formed Hammer candlestick pattern, it has shown pullback on the upside and marked the high of Rs 237 mark then after it is been consolidating at higher levels. Currently, it is waiting for the breakout on the upside so that it can accelerate buying momentum further. The emerging line of polarity on daily time frame is suggesting bullish momentum in the scrip. Indicator and oscillator are also showing conducive scenario in the coming sessions. So based on the mentioned technical structure one can go long in the scrip around Rs 235 for the target of Rs 290 mark with a stop loss of Rs 209 mark.