After 8 weeks of long consolidation, the benchmark index finally confirmed its breakout in Tuesday’s trade by opening higher with a decent gap. Subsequently, the momentum accelerated further, with the Nifty surpassing the 11,000 mark. It rallied to 11,078.30 in Thursday’s session.
In the last hour of trade, market participants decided to take some profit off the table which had a rub-off effect as the Nifty erased some of its intraday gains. It however managed to hold on to 11,000 levels on a closing basis.
The benchmark indices is a few points away from its all-time high. However, there are certain pockets which are still trading near its 52-week low.
V-Guard, Manappuram Finance can give 10-12% return in 15-21 sessions by going short
It doesn’t mean we are sounding bearish at this point of time. What we have seen is that the recent rally was largely fuelled by few index heavyweights. The long traders must follow a strict stop-loss on position and keep trailing their stop-losses on every rise.
For a short to medium term perspective, Thursday high of 11,078 will act as an immediate hurdle above which index is likely to test its all-time high of 11,171.55. On the flip side, 10,920 will act as an immediate support below which the strong support seen is placed at Tuesday’s gap area of 10,876–10,860.
Here are the lists of 3 stocks that could return 8-12 percent in 15-21 trading sessions
V-Guard Industries: Sell around Rs 203 – 206| LTP: Rs 200.30| Target 180| Stop Loss: Rs 217.50| Timeframe 15 to 21 trading sessions| Return 10%
Looking at the daily chart, the stock has been in a downtrend since the past several weeks and is forming Lower Top Lower Bottom formation on the daily chart.
In that pessimism, the stock hit a low of Rs 187 which coincided with the weekly 89-EMA and saw a decent pullback towards Rs 206.
The level of Rs 206 coincided with the 61.8% retracement of its previous swing move. The daily RSI (14) signaled a negative reversal pattern. The said pattern indicates the recent bounce was merely a pullback and the current downtrend is still intact.
The weekly 9-45 EMA has signaled a negative crossover. Hence, we recommend traders to build a short position in the range of Rs 203 to Rs 206 with a price target of Rs 180. A stop loss should be placed at Rs 217.50 on the daily closing basis.
Manappuram Finance Ltd: Sell around Rs 104-106| LTP: Rs103.20| Target: Rs 91| Stop Loss: Rs 110.50| Timeframe 15 to 21 trading sessions| Return 11.8%
After posting a fresh high of around Rs 130, the stock corrected sharply and slipped below Rs 100 levels. Off late, the stock saw a decent pullback and bounced towards Rs 108 levels which coincided with the multiple resistances such as 89-EMA & 200 DMA on daily charts comes near the Rs 108 level.
During Thursday’s session, the stock resumed its downtrend and nosedived sharply. As a result, Thursday’s candle resembles a formation of a bearish engulfing pattern.
The daily RSI (14) resist near 60 levels. The overall trend is still down, therefore, we advocate traders to build a short position in the range of Rs 104 to Rs 106 with a price target of Rs 91. A stop loss should be placed above Rs 110.50.
Page Industries Ltd: Buy around Rs 28,200 – 28,000| LTP: Rs 28,139| Target: Rs 30,500| Stop Loss: Rs 26,875| Time frame 15 to 21 trading session| Return 8%
The stock confirmed its breakout from a triangle pattern during mid-June 2018 and saw an acceleration of bullish momentum. In that optimism, the stock hit a fresh all-time high of around Rs 29,675.
Subsequently, it saw a mild profit booking and gradually descend towards 28,000 levels. Looking at the daily chart, the previous swing high (on a closing basis) of June 25, 2018, comes near 28000 – 28200 zone which is likely to act as an immediate support.
The daily RSI (14) has signaled Positive Reversal. Hence, we suggest traders accumulate the stock in a range of Rs 28,200 – 28,000 with a price target of Rs 30,500 and a stop loss placed below Rs 26,875.