Trade with a trailing stop loss of 9,270 on Nifty; 5 stock ideas which can give up to 15% return
Last week, stock market witnessed a bullish breakout on Wednesday after 10 days of consolidation and made a high of 9,450 on Friday. The index took support at breakout levels placed at 9,370.
Sectoral bias for a heavyweight sector like Nifty IT seems to have shifted to the positive territory, from a perennial weak bias.
Hence, the bias remains positive for 9,670 levels but buying on dips would be preferred. A trailing stop loss for the long can be placed below 9,270 levels on closing basis.
We have collated a list of top five stocks which could give up to 15 percent return in the short term:
Piramal Enterprises: BUY| Target Rs 2800| Stop Loss 2530| Return 7%
Piramal Enterprises has been an outperformer within the market. The scrip has sustained rising gaps very well. It recorded near an all-time high of Rs2,633, on the back of high-delivered quantity.
It saw the highest rise in OI by around 50 percent. Traders may buy the stock with a target placed at Rs2,700-2,800 with a stop placed a bit below Rs2,530.
Reliance Infrastructure: BUY| Target Rs 651| Stop Loss Rs 585| Return 6%
Reliance Infrastructure has come out of a 2-month long consolidation Rs558-595. The delivered quantity is at the highest in the recent past, with delivered percentage rising higher (17% vs average of 12%).
The open interest (OI) in futures is Down 3 percent and it looks like the upside with get stretched towards till Rs624 and further upwards towards Rs651. The stop maybe placed below the breakout gaps around Rs585.
DLF: BUY| Target Rs 240| Stop Loss Rs 197| Return 15%
DLF saw a consolidation breakout in the current week above the Rs 198 mark, accompanied by good volumes. The delivered quantity is one of the highest in recent few days. The delivered percentage is also higher (30% vs average of 13%).
The low of Friday placed at Rs197 is higher than the candle made in the previous trading session which can be taken as a stop loss. Traders can buy the stock for a target of Rs 225 and then towards Rs 240.
Biocon: SELL| Target Rs 940| Stop Loss Rs 1031| Return 4%
Biocon saw a gradual price move from March 2017 and has met with a faster retracement, wherein prices have broken below the 3-month low placed around Rs995.
The said retracement has taken place on the back of heavy volumes (around 4-5 times of averages). Prices in the recent few days have remained extremely volatile with the majority of the days showing a negative candle, an indication of consistent selling at every higher level.
A dipping RSI around 39 indicates the waning strength in the prices. The stock is ripe for a correction till the 200-DMA placed at Rs972 with an extension to 50-WMA art Rs940. The stop may be placed a bit above the last week’s closing placed at Rs1,031.
Oriental Bank of Commerce: SELL| Target Rs 143| Stop Loss Rs 173| Return 12%
After hitting a 52-week high placed at Rs191, the prices have fallen off the cliff over the whole of last week. The earlier week’s LOW placed at Rs169.70 seems to have been breached convincingly.
The last 3 weeks have had a substantial pick up of volumes with each of the candles showing a dipping average traded prices. The RSI after having reached overbought levels around 72 has softened off to 52, showing a waning strength.
The prices are on course for a break below to the Rs 156 and then further towards Rs149 with a stop loss placed at Rs173, which is its 3-week closing price.
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