Stock picks of the day: Nifty’s expiry close expected to be within 10,700-10,800

On the options front, heavy addition is seen in 10800 CE (8.43Lakh shares) and 10700 PE (12.91Lakh shares) which suggests the November Nifty expiry is expected to be within 10700-10800.

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On the daily chart, Nifty seems to have found support above previous swing low, which led to a move above 10,700 on Wednesday. The index has reclaimed 200-EMA on the daily frame.

The daily strength indicator RSI (14) is in a bullish crossover with a current reading at 56.74. On the other hand, November Future contract of Nifty has formed a shooting star kind of pattern on the daily chart which suggests a possible pause in the rally.

On the options front, heavy addition is seen in 10,800 CE (8.43Lakh shares) and 10,700 PE (12.91Lakh shares) which suggests the November Nifty expiry is expected to be within 10,700-10,800.

Going forward, the Nifty may face resistance at the previous swing high which is currently pegged at 10774. In addition, 21-EMA on the weekly chart which is currently placed at 10755 is also likely to act as an obstacle.

Therefore, 10,750-10,800 is a zone where initial selling pressure may come in, fresh longs are expected only above 10800. On the other hand, failure to sustain above 10,700 may induce long unwinding in the market. The short-term supports are pegged at 10,600 and 10,500.

Here is a list of top 3 stocks which could give 5-9% return in the next one month:

Mphasis: Buy| CMP: Rs.955.50 | Target Rs 1,044| Stop Loss: Rs.914| Return 9%

The stock, after a downward consolidation, has moved up with a strong momentum. The sudden rise in price was backed by a spike in volumes.

A positive divergence is visible on the daily momentum indicator RSI (14) which suggests that there could be a positive shift in the price momentum.

In addition, a hammer kind of candle is visible on the weekly chart. Traders can accumulate the stock in the range of 950–960 for the target of 1044 and a stop loss below 914.

HDFC Bank: Sell| CMP: Rs 2089.25 | Target: Rs 1,980 | Stop Loss: Rs.2141| Return 5.20%

The stock has recently moved up from its recent low of 1885 to 2089 which 61.80% of the previous fall from 2220 to 1885.

On the other hand, a bearish Anti Cypher pattern has formed on the daily chart of HDFC Bank which may initiate a very short-term pullback in the stock.

Traders can sell the stock in the range of 2080-2090 for the target of 1980 and a stop loss above 2141.

Zee Entertainment: Buy| CMP: Rs. 477.45| Target: Rs 521| Stop Loss: Rs.458| Return 9%

The stock has given a consolidation breakout on the weekly chart which suggests growing optimism in the stock. In addition, ZEEL has moved above 50-EMA on the daily chart.

Also, on the daily chart, the price has given a symmetrical triangle breakout. Traders can accumulate the stock in the range of 475-480 for the target of 521 with a stop loss below 458.

Disclaimer:-The views and investment tips expressed by investment experts are their own. Ripples Advisory advises users to check with certified experts before taking any investment decisions.

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