A close below support of 11580 will trigger a breakdown from a rising channel pattern dragging it lower to levels of 11530.
The Nifty50 index closed above 11,700 levels for the first time since August 2018. We witnessed mild profit booking at higher levels and Nifty closed just a kissing distance from making a new all-time high.
Moreover, it has formed a Doji candlestick pattern for the second day indicating that bears are becoming active post the sharp up move.
Further, a trade below 11,640 can trigger bouts of profit booking to levels of 11,580, a close below this support of 11,580 will trigger a breakdown from a rising channel pattern dragging it lower to levels of 11,530.
However, a trade above 11,680-11,700 will resume the uptrend taking the Index higher to fresh record highs above 11,760-11,770. Moreover, corrective price action is yet to happen to draw a conclusion if an intermediate top has been formed.
Here is a list of top three stocks which could give 7-8% return in the next 3-4 weeks:
L&T Technology Services: Buy| LTP: Rs 1,632| Target: Rs 1,760| Stop Loss: Rs 1550| Upside 7.8%
On the weekly chart, L&T Technology Services (LTTS) has broken out from a Triangle pattern neckline placed at 1570 triggering a resumption of the bull trend.
Sustained trade above 1570 with healthy volumes will take the stock higher to levels of 1700-1760. Moreover, it had taken support at the 61.8% Fibonacci retracement level i.e. 410 and turned higher affirming bullishness intact in the stock.
The relative strength index or the RSI has formed a positive reversal indicating higher levels in the coming trading sessions.
The stock can be bought in the range of 1610-1615 for the targets of 1700-1760, and keep a stop loss below 1550.
Torrent Power: Buy| LTP: Rs 263| Target: Rs 285| Stop Loss: Rs 251| Upside 8%
On the weekly chart, Torrent Power Ltd. (TORNTPOWER) is approaching neckline of an Ascending Triangle pattern placed at 278. A successful breakout from the neckline will extend the bull run to levels of 285.
Further, the stock continues to form higher highs and higher lows after taking support at the Fibonacci retracement support zone affirming strong bullishness dominant currently.
The RSI has turned upwards after taking support at 50-level suggesting higher levels in the stock. The stock may be bought in the range of 261-265 for targets of 278-285, keeping a stop loss below 251.
Delta Corp: Buy| LTP: Rs 272| Target: Rs 292| Stop Loss: Rs 252| Upside 7%
On the weekly chart, Delta Corp Ltd. (DELTACORP) has broken out from a Symmetrical Triangle pattern triggering the start of a bull trend. Further, this breakout is backed by healthy volumes confirming the authenticity of the breakout.
Further, RSI has turned north after taking support at the 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 268-272 for targets of Rs 285-292, and keep a stop loss below Rs 252.
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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