Shitij Gandhi
Snapping two-day losing streak, Nifty surpassed above 11,800 (intraday basis) and edged sharply higher on June 25 on the back of gains in heavyweights like RIL and HDFC.
Overall, market breadth remained positive as Put writers at 11,700 strike added more than 12 lakh shares in the open interest (OI). Call unwinding at 11,800 and 11,900 strikes clearly kept bears on the back foot.
Going forward, We believe that the upside momentum is intact for Nifty as long as it holds above 11,700 (SPOT).
Technically, Nifty has given a breakout above the falling trend line of the downward sloping channel on shorter time frame as well, which can take the momentum towards 11,900-11,950 in the next few sessions.
Here are three stocks that could give 10-13 percent return in the next 3-4 weeks:
Oberoi Realty: Buy| Target: Rs 617| Stop loss: Rs 525| Upside: 10 percent
The stock has been consistently maintaining its bull run with a series of higher highs and higher bottom patterns on the daily and weekly interval.
At the current juncture, the stock took support at its 200-day exponential moving average (EMA) on the daily charts and formed a double bottom pattern to reclaim Rs 550.
The stock has also managed to give breakout above the neckline of the inverted head and shoulder pattern on the shorter time frame.
Traders can accumulate the stock in the range of Rs 560-565 for the upside target of Rs 617, and keep a stop loss below Rs 525.
The Indian Hotels Company: Buy| Target: Rs 171| Stop loss: Rs 145| Upside: 10 percent
The stock has been consolidating in a broader range of Rs 140-160 for the past twelve weeks, along with consistent buying at support levels.
The prices are also maintaining well above short and long-term moving averages. This week we have observed a fresh breakout into the prices after prolonged consolidation and on technical parameters stock has also formed rounding bottom pattern on daily charts.
The breakout has occurred along with marginally higher volumes. Traders can accumulate the stock in the range of Rs 155-158 for the upside target of Rs 171, and keep a stop loss below Rs 145.
Trent: Buy| Target: Rs 481| Stop loss: Rs 395| Upside: 13 percent
The stock has been consistently trading in a rising channel on the daily interval to test its 52-week high on June 24.
On the technical charts, it has given a fresh break above its key resistance levels of Rs 425 and has also managed to close above that.
The momentum has picked up along with higher volumes that suggests bulls are likely to keep control over the momentum in coming sessions as well.
Traders can accumulate the stock in the range of Rs 425-430 for the upside target of Rs 481, and keep a stop loss below Rs 395.
The author is a Senior Research Analyst, SMC Global Securities Ltd.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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