Podcast | Stock Picks of the Day: Top 3 picks which could give 12-13% return

Shitij Gandhi of SMC Global Securities said if Nifty holds the higher level of 10,800 then short covering may be seen in the oversold stocks as well.

The Nifty50 consolidated in a range of 10,700-10,800 as bulls and bears both tried to take control over the market which in turn added intraday volatility.


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As we are moving towards expiry of June series future and options contract, the range of 10,700-10,800 will remain crucial as Put writers are holding and actively adding Open Interest (OI) in 10,700 strikes while call writers at 10,800 strikes are keeping the gains under check.

Going forward, we believe that any decisive break and closing in Nifty index whether above 10,800 or below 10,700 will gauge further direction in the price movement.

However, if Nifty holds the higher level of 10,800 then short covering may be seen in the oversold stocks as well.

Despite heavy selloff in the midcap stocks and various attempts by the market to breach it on the downside, Nifty held on to the highest put base of 10,700 with nearly 52 lakh shares.

Here is a list of top three stocks which could give 12-13% return in over a month:

Muthoot Capital Services Limited: Buy| Target: Rs 1,145| Stop Loss: Rs 945| Return 12%

The stock has been trading higher since the beginning of the year with the formation of higher highs and higher bottom pattern on the daily charts.

In the recent weeks, the stock has tested Rs 1,129 levels after witnessing a breakout above Rs 1,000 levels. However, since then, consolidation in prices has held the stock to trade in a thin range of Rs 1,050-1,100 levels.

Movement in a narrow band led to the formation of rectangle pattern which is generally traded as a continuation pattern. The positive divergence on secondary indicators like RSI and stochastic are pointing towards next up move in prices moving forward.

Traders can accumulate the stock in a range of Rs 1,020-1,050 for the target of Rs 1,145 and a stop loss below Rs 945.

Greaves Cotton Limited: Buy| Target: Rs 153| Stop Loss: Rs 128| Return 12%

In the recent past, the stock made a double top pattern around Rs 147 levels and witnessed profit booking thereon to take support at Rs 120 levels. Now, on the daily charts, the stock has formed a cup and handle pattern on broader picture and also given breakout above the same this week.

Moreover, the additional volumes with the rise in price also observed in Tuesday’s session which indicates towards the strength in price movement. Traders can accumulate the stock in a range of Rs 136-140 for the upside target of Rs 153 and a stop loss below Rs 128.

Filatex India Limited: Buy| Target: Rs 239| Stop Loss: Rs 195| Return 13%

The stock has given a fresh breakdown below Rs 185 levels and its 200-days exponential moving average in early 2018 and tested Rs 150 levels in a short span of time.

Since then, smart recovery has been witnessed in the stock as once again prices regain its short and long-term moving averages.

On the weekly charts, the stock has formed a bullish pennant pattern and also given upside breakout which supports the next up move in prices.

Traders can accumulate the stock in a range of Rs 211-215 for the upside target of Rs 239 levels with a stop loss below Rs 195.

For more such news & to get Free Stock Tips from Ripples Advisory, visit >> Free Stock Cash Tips or give a missed call at @9644405056

Disclaimer:- The views and investment tips expressed by investment experts are their own. Ripples Advisory advises users to check with certified experts before taking any investment decisions.

Riyanshi

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