Nifty witnessed sideways to negative action throughout this week but selling pressure in the second half of the trading session pushed the index below 11,900 on May 29.
Nifty has resistance at 12,000-12,041 and needs to be crossed on a sustainable basis for it to move towards 12,300.
On the downside, the immediate support is placed at 11,860 and a break below this level could lead to 11,700-11,650.
For Nifty options, maximum open interest for Put is seen at strike price 11,000 followed by 11,700, while for Call maximum open interest is seen at 12,500 followed by 12,000.
Here are five stocks that could give 13-16 percent return in June series:
Kajaria Ceramics: Buy| LTP: Rs 637| Stop loss: Rs 610| Target: Rs 740| Upside: 16 percent
The stock has been in an uptrend forming higher tops and higher bottoms on the weekly charts since October’s last year low of Rs 310. It has crossed 61.8 percent Fibonacci retracement that comes at Rs 591 of the major fall from Rs 765 to Rs 310 and now trading at a 16-month high.
The price has given a breakout on the upside from the Bollinger Band, and with the expansion of bands indicates a continuation of the trend in the direction of the breakout on the daily chart.
The Relative Strength Index and Stochastic have given a positive crossover with their respective averages on the daily and weekly charts. Thus, stock can be bought at current levels and on dips towards Rs 635 with a stop loss below Rs 610 and a target of Rs 740.
Blue Star: Buy| LTP: Rs 796| Stop loss: Rs 750| Target: Rs 900| Upside: 13 percent
The stock has formed a bullish Inverted Head and Shoulders pattern on the weekly chart. Earlier this month, the stock witnessed a breakout from the pattern with strong momentum and high volumes indicating buying participation.
It touched a high of Rs 792 and then corrected down towards the breakout level of Rs 700. Since then, the stock has bounced back and resumed its uptrend. The Average Directional Index (ADX) line indicator of trend strength has turned up from an equilibrium level of 20 on the weekly chart.
MACD line has given a positive crossover with its average above equilibrium of zero on the daily chart. Thus, stock can be bought at current levels and on dips towards Rs 780 with a stop loss below Rs 750 and a target of Rs 900.
L&T Technology Services: Buy| LTP: Rs 1,737| Stop loss: Rs 1,700| Target: Rs 2,000| Upside: 15 percent
The stock hit an all-time high of Rs 1,855 in September last year and since then it is consolidating in a narrow range. The stock has been in a sideways correction between Rs 1,800 and Rs 1,400 odd levels for the last nine months.
Price is now trading at a breakout level and has seen short-term consolidation. The RSI and Stochastic have given a positive crossover with their averages on the daily chart.
The price has taken support at a 21-day exponential moving average which has been acting as support for the stock. Thus, stock can be bought at current levels and on dips towards Rs 1,750 with a stop loss below Rs 1,700 and a target of Rs 2,000.
Deepak Nitrite: Buy| LTP: Rs 313.60| Stop loss: Rs 300| Target: Rs 360| Upside: 15 percent
The stock had been consolidating for the last 17 months between Rs 305 and Rs 205 to form a W shaped pattern on the weekly charts. The stock has given a breakout on the upside with strong momentum and good volumes which indicates buying participation in the stock.
The price has given a breakout on the upside from Bollinger Band with an expansion of bands indicating a continuation of the trend in the direction of breakout on the daily chart.
The Average Directional Index (ADX) line indicator of trend strength has turned up from the equilibrium of 20 on the daily chart.
Thus, the stock can be bought at current levels and on dips towards Rs 310 with a stop loss below Rs 300 and a target of Rs 360.
State Bank of India: Buy| LTP: Rs 348| Stop loss: Rs 345| Target: Rs 400| Upside: 15 percent
The stock has seen a major multiyear consolidation between Rs 350 and Rs 150 odd levels for more than eight years now. It has seen a breakout from this major base and is now trading at all-time high levels.
The Average Directional Index (ADX) line indicator of trend strength has turned up from an equilibrium of 20 on the weekly chart.
Momentum indicators are in bullish mode on daily and weekly charts. Thus, stock can be bought at current levels and on dips towards Rs 355 with a stop loss below Rs 345 and a target of Rs 400.
The author is Head of Technical and Derivatives, Sanctum Wealth Management.
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.
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