Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessMarkets

Pick these 3 stocks for up to 24 percent returns

Traders are advised to book profits hereon as there could be a sharp corrective move in the coming weeks. On the downside, the immediate support is at 18,060, and a breach of the same might result in further profit-booking.

May 21, 2023 / 08:09 AM IST
stock

Stock

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Jigar S Patel, Senior Manager, Equity Research, Anand Rathi

It was a tough fight between the bulls and the bears during the week ended May 19. The bears tried their best to bring in some pessimism, but the bulls remained resilient throughout the week. As a result, the Nifty corrected from 18,459 to 18,060, but managed to recapture the 18,200 mark on closing.

Due to profit booking, we witnessed some softness in the Nifty during the week. Now we are witnessing a reversal candlestick pattern on the weekly scale, and the range of that candle might dictate the market trend in the immediate future.

Ihe India VIX has turned from the 10–11 zone to 12, and historically, we have witnessed heavy volatility when the VIX has turned from this zone. The recent price action seemed to be a bit like index management, as the rally was driven by a handful of stocks.

Thus, we once again advise traders to book profits hereon as there could be a sharp corrective move in the coming weeks. On the downside, the immediate support is at 18,060 and a breach of the same might result in further profit-booking towards 17,800 in the coming sessions. The upside cap for the index is around 18,450, in case of further optimism.

Once again, the Nifty Bank index outperformed the benchmark indices by closing the week in the green. As of now, we are witnessing negative divergence in the daily RSI, hence, in the coming sessions, fresh buying in the index is advisable only above the 44,150 mark.

On the downside, 43,400 seems to be an important support since that is the placement of a rising trendline. A breach of the same might result in some pessimism in banking stocks.

Here are three buy calls for the next 2-3 weeks:

Firstsource Solutions: Buy | LTP: Rs 134 | Stop-Loss: Rs 114 | Target: Rs 155 | Return: 15 percent

For the last one year this stock has been consolidating in the range of Rs 100-120. Recently, it saw a clean breakout along with heavy volume, which indicates a further upside.

Additionally, on a weekly scale, the MACD (moving average convergence divergence) is displaying a crossover exactly above the zero line, which is a sign of further bullish momentum.

One can buy in the range of Rs 125-135 for a target of Rs 155, and stop-loss at Rs 114.

Image121952023

Amara Raja Batteries: Buy | LTP: Rs 639 | Stop-Loss: Rs 615 | Target: Rs 690 | Return: 8 percent

This stock has seen a breakout from its previous weekly trading range of Rs 550-620, and is currently well placed above it. On the indicator front, the price action is well above the William Alligator indicator (a trend-following indicator), and the weekly MACD is also displaying a crossover exactly above the zero line, which is a sign of further bullish momentum.

Thus, one can buy in the range of Rs 635-640, with an upside target of Rs 690. The stop-loss would be Rs 615 on a daily close basis.

Image131952023

Jubilant Pharmova: Buy | LTP: Rs 346 | Stop-Loss: Rs 310 | Target: Rs 430 | Return: 24 percent

After hitting a peak of Rs 925 in May 2021, the stock has nose-dived, resulting in a 71 percent erosion in price. But from about Rs 300-levels in March 2023, it has picked up nicely.

Additionally, it has made a Bullish Bat pattern on a weekly scale, along with bullish divergence, i.e., the price was scraping lower lows and the MACD was hitting higher lows (refer to the chart).

Hence, one can buy in the range of Rs 340-350, with an upside target of Rs 430. The stop-loss would be Rs 310 on a daily close basis.

Image141952023

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Jigar Patel
Jigar Patel Jigar S Patel is the Senior Manager - Equity Research at Anand Rathi Shares & Stock Brokers.

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347