MUMBAI: The Indian markets are moving in a narrow band in absence of positive cues from global peers. According to analysts, the consolidation is likely to continue ahead of the U.S. presidential elections.
Following are the top five trading picks that stand a chance to give good returns in the short term.
Vinay Khattar, Head Research (Individual Clients),Edelweiss Financial ServicesBSE 2.13 %
1) Financial Technologies:
The stock has generated flag pattern breakout on good volumes. Technical indicators are trading with positive bias. Open Interest data indicates long build-up in previous trading session.
Short term traders can go long in the range of Rs 1,020-1,030, maintaining a stoploss of Rs 990 for a target of Rs 1,060/1,080.
2) OptoBSE 1.45 % Circuits:
The stock has formed a bullish engulfing/morning star candle pattern on its daily chart. We have also seen positive divergence on Oscillator RSI.
The stock took support at the previous lows of August'12 where strong downtrend was in play. The current fall in the stock has seen lower volumes which points to possibility of a rebound.
Short term traders can go long in the range of Rs 122-124 with stoploss of Rs 116 for a target of Rs 134.
Somil Mehta, Senior Technical Analyst, Sharekhan
3) LIC HousingBSE 0.52 % Finance: The stock has taken support at lower end of the bollinger band on the daily chart. Momentum indicators on hourly and daily charts are on the positive side. The hourly chart has also broken out of bullish flag pattern and taken support at 20 and 40 hourly moving averages.
The stock is expected to go to Rs 265-267 in the short term. Buy with a stoploss of Rs 245 for a target of Rs 265.
4) DishmanBSE 2.07 % Pharmaceuticals:
The stock has formed inverted head and shoulder pattern on the weekly chart. Momentum indicators on daily and weekly charts are on the positive side. The stock is expected to rally upto Rs 130 in the next two quarters. Buy with a stoploss of Rs 90.
IIFL:
5) Lupin: The stock had been consolidating near the support zone of Rs 562 along with the support of 100-DMA. On Friday, it broke out from the consolidation zone with impressive volumes.
A move past Friday's peak is likely to trigger sharp rally in the counter. The daily RSI has been quiet encouraging and is expected to improve from hereon as the stock continues to make higher top and higher bottom. Buy with a stoploss of Rs 570 for a target of Rs 604 in next 5 days.
Disclaimer:
The above report is based on technical views and information given by analysts. Please consult your financial advisor before taking any position in the stocks mentioned.
Following are the top five trading picks that stand a chance to give good returns in the short term.
Vinay Khattar, Head Research (Individual Clients),Edelweiss Financial ServicesBSE 2.13 %
1) Financial Technologies:
The stock has generated flag pattern breakout on good volumes. Technical indicators are trading with positive bias. Open Interest data indicates long build-up in previous trading session.
Short term traders can go long in the range of Rs 1,020-1,030, maintaining a stoploss of Rs 990 for a target of Rs 1,060/1,080.
2) OptoBSE 1.45 % Circuits:
The stock has formed a bullish engulfing/morning star candle pattern on its daily chart. We have also seen positive divergence on Oscillator RSI.
The stock took support at the previous lows of August'12 where strong downtrend was in play. The current fall in the stock has seen lower volumes which points to possibility of a rebound.
Short term traders can go long in the range of Rs 122-124 with stoploss of Rs 116 for a target of Rs 134.
Somil Mehta, Senior Technical Analyst, Sharekhan
3) LIC HousingBSE 0.52 % Finance: The stock has taken support at lower end of the bollinger band on the daily chart. Momentum indicators on hourly and daily charts are on the positive side. The hourly chart has also broken out of bullish flag pattern and taken support at 20 and 40 hourly moving averages.
The stock is expected to go to Rs 265-267 in the short term. Buy with a stoploss of Rs 245 for a target of Rs 265.
4) DishmanBSE 2.07 % Pharmaceuticals:
The stock has formed inverted head and shoulder pattern on the weekly chart. Momentum indicators on daily and weekly charts are on the positive side. The stock is expected to rally upto Rs 130 in the next two quarters. Buy with a stoploss of Rs 90.
IIFL:
5) Lupin: The stock had been consolidating near the support zone of Rs 562 along with the support of 100-DMA. On Friday, it broke out from the consolidation zone with impressive volumes.
A move past Friday's peak is likely to trigger sharp rally in the counter. The daily RSI has been quiet encouraging and is expected to improve from hereon as the stock continues to make higher top and higher bottom. Buy with a stoploss of Rs 570 for a target of Rs 604 in next 5 days.
Disclaimer:
The above report is based on technical views and information given by analysts. Please consult your financial advisor before taking any position in the stocks mentioned.
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