Sustained trades above 11,000 may induce a rally towards 11,200. On the other hand, a breakdown below 10,800 may trigger short-term bearishness in the market.
On the daily chart, Nifty gave a breakout of a falling trend and rested the trend line. On the weekly chart, the index is in an upward rising wedge, which suggests a bullish trend.
Also, Nifty formed a Golden Cross of 50-EMA and 200-EMA, visible on the daily chart, which again supports the bullish setup. The weekly oscillator RSI (14) has given a falling trend line breakout which is bullish in nature.
On the options front, maximum open interest position is visible in 11,000 CE (43.76Lakh shares) and 10,500 PE (37.13Lakh shares); followed by 10,900 CE (35.60Lakh shares) and 10,800 PE (32.54Lakh shares).
Going forward, 10,800 is expected to act as crucial support for the Nifty, and any fall towards 10,800 may get bought. On the higher end, 11,000 is expected to act as initial resistance.
Sustained trades above 11,000 may induce a rally towards 11,200. On the other hand, breakdown below 10,800 may trigger short-term bearishness in the market.
Here is a list of top three stocks which could give 7-10% return in next 1 month:
Dishman Carbogen: Buy| LTP: Rs.219.25 | Target: Rs 240| Stop loss: Rs 212| Return 9.50%
On the daily chart, the stock price has made a bullish AB=CD harmonic pattern which suggests a reversal of the current trend is likely.
In addition, the price is finding support around historical trough on the daily chart. Moreover, an inverted Hammer is visible on the daily chart of the stock. Traders can accumulate the stock in the range of Rs 217-220 for the target of Rs 240 and a stop loss below Rs 212.
Tata Steel: Buy| LTP: Rs.464.60 | Target Rs 505| Stop Loss: Rs.445| Return 8.6%
The stock has formed a Bullish Harami candlestick pattern on the daily time frame. On the Weekly chart, the stock has completed bullish Butterfly Harmonic pattern.
Moreover, the stock has taken support at 50 percent retracement level at Rs 448, from its previous rally of Rs 188 to Rs 720. Traders can accumulate the stock in the range of Rs 460-470 for the target of Rs 505 and a stop loss below Rs 445.
Avenue Supermarts: Buy| LTP: Rs.1397.30 | Target: Rs 1470-1500| Stop Loss: Rs.1349| Return 7%
On the daily chart, the stock has given a downwards consolidation breakout which suggests a reversal of the previous downtrend. The rise in price was backed by increased volume.
On the daily chart, a positive divergence in the RSI (14) is seen which is likely to initiate a positive breadth in the stock. Traders can accumulate the stock in the range of Rs 1390-1400 for the target of Rs 1470-1500 and a stop loss below Rs 1349.
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