However, with the internal advance-decline ratio indicating a negative stance, the profit-booking regime is expected to halt the momentum which was visible in the current session. We advise investors to remain stock specific with a strict stop-loss on longs. We expect the Nifty to trade around 11,810 on upside and 11,670 on the downside on a weekly basis.
Here is a list of top three ideas which could return 4-12 percent in the next 1 month:
Welspun Corp Ltd: Buy| Target: Rs 187 | Stop-Loss: Rs 152 | Return 12%
The Welspun Corp formed a two lower base of 131-104 levels on its six-month price chart from a higher level of Rs 190-170. Recently, the scrip witnessed a reversal trend favoring upward trajectory where it managed to breakout from the long-term average level of 141 which was critical resistance and also witnessed a significant volume growth (above daily average).
The weekly RSI level at 63 has shown a positive price divergence while MACD recently witnessed a bullish crossover. We have a BUY recommendation for Welspun Corp. which is currently trading at Rs. 166.70
TVS Motor Company Ltd: Buy | Target: Rs. 605| Stop-Loss: Rs. 553 | Return 6%
During the last six months, TVS Motor consolidated from Rs 680 levels towards a low of Rs 512 forming multiple lower bottom. However, during a recent period, it resumed upward rally, taking a strong support at Rs 512 levels.
It also managed to breakout from 100-days moving average level placed at 549 and formed a substantial volume growth.
The momentum indicator indicated a positive trend with RSI at 62 levels, while MACD is likely to make a bullish crossover in the next few sessions. We have a BUY recommendation for TVS Motor which is currently trading at Rs. 569.50
New India Assurance:Sell | Target: Rs. 235 | Stop-Loss: Rs. 265 | Downside: 4%
Despite witnessing a false breakout during the opening session this week, New India Assurance continued to consolidate over the last six-month period from the highs of Rs 373 levels.
It further slipped below 200-days moving average level placed at Rs 329 levels, indicating a negative trajectory for the scrip.
The volume growth remained subdued throughout the session as momentum indicator continued to indicate consolidation phase. We have a sell recommendation for New India Assurance which is currently trading at Rs 244.75
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