Nifty ended the session with massive gains of 3.70 percent on May 20 following the exit polls indicated Narendra Modi's victory. After a gap-up opening, it continued to rally indicating the strength of bulls in the markets.
Now a sustained trade above 11,870, which is the upper end of the ascending triangle pattern, will take the index towards 12,050-12,200.
However, a failure to sustain above this resistance line placed at 11,870 may lead to minor profit booking dragging it lower to 11,700-11,570. The Relative Strength Index (RSI) is suggesting an extension of the bull run.
Here are three stocks that could return 6-25 percent in the next 3-4 weeks:
Repco Home Finance: Buy| Target: Rs 510-545| Stop loss: Rs 394| Upside: 17-25 percent
On the daily chart, Repco Home Finance has broken out from a falling channel pattern triggering the start of a fresh bull run. A sustained trade beyond Rs 450 with good volumes will take the stock to Rs 510-545.
Moreover, it had taken support at the 61.8 percent Fibonacci retracement level in the recent correction. It later turned higher affirming bullishness in the stock.
Moreover, on the weekly chart, it is on the verge of a breakout from a trendline resistance placed at Rs 450. A weekly close beyond this resistance line will extend the up-move.
Moreover, RSI has formed a positive reversal indicating higher levels in the coming trading sessions. The stock may be bought in the range of Rs 435-440 for targets of Rs 510-545, keeping a stop loss below Rs 394.
Hero MotoCorp: Buy| Target: Rs 2,995-3,225| Stop loss: Rs 2,520| Upside: 11-19 percent
On the weekly chart, Hero MotoCorp has turned upwards after taking support at the lower end of the channel pattern suggesting bullishness building up in the stock.
Further, on the daily time frame, it has broken out from a wedge pattern confirming the bullishness in the stock. The RSI has also turned higher after making a positive divergence. The stock may be bought in the range of Rs 2,700-2,725 for targets of Rs 2,995-3,225, keeping a stop loss below Rs 2,520.
Hindustan Unilever: Buy| Target: Rs 1,880-1,950| Stop loss: Rs 1,700| Upside: 6-10 percent
On the weekly chart, Hindustan Unilever has broken out from a channel pattern resistance triggering a bull run.
On the daily time frame, it has turned upwards after taking support at the trendline support confirming that the bullishness is intact in the stock.
Further, RSI has turned northwards after taking support at 40-level suggesting that there are more legs to this rally following the bullish breakout. The stock may be bought in the range of Rs 1,765-1,775 for targets of Rs 1,880-1,950, and a stop loss below Rs 1,700.
The author is Senior Manager, Technical Analysis, YES Securities.
Disclaimer: The views and investment tips expressed by investment expert 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.
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!
