The markets got a further boost after a Reserve Bank of India (RBI) report showed that the corporate sector recorded robust sales growth in Q4 FY18.

Bulls tightened their grip on Indian equity benchmarks in Tuesday’s afternoon session, with the Sensex and Nifty extending their gains for the third consecutive day. Indices hit fresh intraday highs supported by strong global cues, optimism over Q1 earnings and sustained buying in heavyweights.

The markets got a further boost after a Reserve Bank of India (RBI) report showed that the corporate sector recorded robust sales growth in Q4 FY18.

The Nifty surged 0.87 percent to close at 10,947.25, forming a solid bullish candle on the daily chart. It has given a breakout with a strong bullish candle after trading rangebound from eight weeks on the trot. This indicates that the index has a potential to move higher around 11,171 levels (lifetime high levels of January) with immediate support at 10,760 (20-day exponential moving average) and 10,713 (50 DMA).

The index is trading at relative strength index of 63.32 and is showing positive movement. The moving average convergence divergence is trading above the zero line with a positive crossover, which indicates that the bias could remain positive in the short term. The volatility index ended up 0.04 percent at 12.39. A decrease in VIX suggests limited downside and a consolidated upmove in the market.

On the options front, maximum call open interest of 37.01 lakh contracts is seen at the 11,000 strike price, followed by 10,800, which now holds 32.24 lakh contracts. Maximum put OI of 52.07 lakh contracts is seen at the strike price 10,600, followed by 10,700, which now holds 46.70 lakh contracts. Immediate support is placed around 10,700 and 10,600, whereas 11,000 will act as a stiff resistance before June expiry.

Here is a list of 3 expert stock ideas which could return 6-13% return in the next 1-2 months:

Petronet LNG: Buy | Close: Rs 222.80 | Target: Rs 251 | Stop loss: Rs 202 | Return: 12.56%

The stock has made a double bottom near Rs 202 levels and has seen a positive price momentum in the past few days crossing the short term averages with moderate volumes.
The key technical indicators such as Relative strength index (RSI) is showing a positive momentum and MACD trading around the zero line with a positive crossover which indicates limited downside for the stock.

Traders can buy the stock in the range of Rs 220-223 with a stop loss below Rs 202 (closing) for a target of Rs 251.

Century Textiles & Industries Ltd: Buy | Close: Rs 935.45 | Target: Rs 1010 | Stop loss: Rs 898 | Return: 7.97%

After a decent correction from its 52-weeks high, the stock surged strongly on Friday with exceptionally higher volumes. On the daily scale, Relative strength index (RSI) is showing positive momentum and MACD trading below zero line with positive crossover whereas (+)DI just crossover the (-)DI.

Based on the above observations, traders can buy the stock at around current levels and add on dips around Rs 918-920 with a stop loss below Rs 898 (closing) for a target of Rs 1010.

Mahindra & Mahindra: Buy | Close: 930.55 | Target: Rs 975 | Stop loss: Rs 902 | Return: 5.29%

The stock has given a breakout from the symmetrical triangle pattern around Rs 915-917 on Friday on the daily chart with higher volumes.

A daily momentum indicator Relative Strength index (RSI) reading at 61.51 level shows a sideways positive momentum and MACD trading above zero line with positive crossover whereas OBV — On Balance Volume is showing an upward momentum and (+) DI continuously trading above (-) DI, which indicates that the stock has the potential to move higher.

Traders can buy the stock in dips around Rs 923-926 with a stop loss below Rs 902 (closing) for a target of Rs 975

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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.