Aditya Agarwala: The Nifty ended trade marginally higher on October 6, which indicates that the market is consolidating. If the index manages to sustain above 10,490 this week and the next, the uptrend should continue which could take the index towards levels of 10,700-10,780.
However, a trade below 10,470 on closing basis can halt the current bullishness dragging the index lower towards levels of 10,330-10,250.
Moreover, a close beyond the 10,780 can extend the rise to levels of 10,880 which is being the gap area. Further, RSI on the shorter time frame has taken support at the 60-level.
Here is a list of top three stocks which could give 16-18% return in the next 3-4 weeks:
Ashok Leyland: Buy | LTP: 120.85 | Target: Rs 142 | Stop Loss: Rs 109 | Return 18%
On the weekly chart, Ashok Leyland Ltd has turned upwards after breaking out of a Wolfe Wave pattern. Further, a sustained trade above Rs 121 will extend the up move taking it higher towards levels of Rs 135-142.
On the daily chart, it has broken out from an inverted Head & Shoulders pattern suggesting bullishness. Moreover, the RSI has also turned upwards after taking support at the 40-level suggesting higher levels in the coming trading sessions. The stock may be bought in the range of 118-122 for targets of 135-142, keeping a stop loss below 109.
Coffee Day Enterprises: Buy | LTP: Rs 279 | Target: Rs 325 | Stop Loss: Rs 253 | Return 16%
On the weekly chart, Coffee Day Enterprises Ltd has turned upwards after taking support at the lower end of the channel pattern. Further, a sustained trade above 284 can extend the up move to levels of 310-325
Further, on the daily chart, the stock has broken out from a consolidation phase and turned upwards suggesting bullishness. The RSI has also turned upwards after taking support at its 40-level suggesting extended bullishness in the coming trading sessions. The stock may be bought in the range of 275-279 for targets of 310-325, keeping a stop loss below 253.
PVR: Buy | LTP: Rs 1,405 | Target: Rs 1,650 | Stop Loss: Rs 1,320 | Return 17%
On the weekly chart, PVR Ltd. (PVR) has broken out from a bullish Wedge pattern indicating a resumption of the uptrend in the stock.
Further, the stock has turned upwards after taking support at the 50% Fibonacci retracement level placed at Rs 1,235 affirming strength dominant. The stock may be sold in the range of Rs 1,418-1,425 for targets of Rs 1,580-1,650, keeping a stop loss below Rs 1,320.
The author Technical Analyst at YES Securities (I) Ltd.
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