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Nifty heading towards 10,500 in Nov series; 5 stocks which could give returns up to 17%
by Shitij Gandhi (Senior Research Analyst,SMC Global Securities)
On the technical front, 10,250-10,270 spot levels is strong support zone and the current trend is likely to continue towards 10,450-10,500.
The overall derivative data indicates long rollover in the November series with most of the Nifty futures positions rolled with the average of 10,250 futures. The data indicates bullish scenario to continue with Nifty holding multiple strong supports at lower levels.
The major supports are placed at 10,250 and 10,200 spot levels. We can see some bit of short covering on every dip as bulls are very active in this series as well.
In the November option contracts, we are seeing options open interest (OI) building up in 10,500 calls and 10,200 puts, so the probable range for the expiry could be 10,000-10,500 with a positive bias.
From the option data, we have seen the range shifted to the upper band which suggests the strength of an ongoing trend. The market undertone is likely to remain bullish with the support of consistent FII buying and short covering.
On the technical front, 10,250-10,270 spot levels is strong support zone and the current trend is likely to continue towards 10,450-10,500.
Here is a list of top 5 stocks which could give up to 17% return in this month:
Excel Industries: BUY| Target Rs590| Stop Loss Rs470| Return 15%
The stock has given a consolidation breakout above 440 levels with comparatively larger volumes and tested 510 levels in recent past.
However, since then once again prices seen consolidating in range of 460-500. Now, on daily charts stock has formed a bullish flag formation and once again given a fresh breakout above the pattern formation.
Traders can accumulate the stock in a range of Rs510-520 for the target of Rs590 with a stop loss below Rs470.
Ador Welding: BUY| Target Rs640| Stop Loss Rs495| Return 17%
The stock has been maintaining its uptrend since the beginning of this year and trading in rising channel on daily and weekly charts.
However, prices have been consolidating from past three weeks and formed downward channel on the shorter time frame, but in Tuesday””s session once again buying momentum seen coming in prices as once again stock manage to give breakout above the falling trend line.
Moreover, on the daily charts, it has also formed bullish flag formation. Traders can accumulate the stock in a range of Rs545-555 for the upside target of Rs640 with a stop loss below Rs495.
Karnataka Bank: BUY| Target Rs179| Stop Loss Rs149| Return 11%
On the daily charts, the stock has taken support at its 200 days exponential moving average multiple times and recovered sharply thereon.
In the current structure, the stock has formed pennant formation on daily charts and is on verge of giving breakout above the pattern formation.
The formation is traded as the continuation pattern. So, traders can accumulate the stock in a range of Rs160-163 for the target of Rs179 with a stop loss below Rs149.
Prestige Estates Projects: BUY| Target Rs355| Stop Loss Rs 278| Return 16%
The stock has been trading high and upholding its rising channel by making higher highs and higher lows on daily charts. In Tuesdays session once again it has given fresh breakout in prices along with positive divergence on secondary oscillators.
Moreover, the short and long-term moving averages on daily charts also support more upside with multiple supports underneath.
The trend is expected to continue in coming sessions as well. Traders can accumulate the stock in a range of Rs305-310 for the target of Rs355 with a stop loss below Rs278.
Tata Metaliks: BUY| Target Rs930| Stop Loss Rs725| Return 16%
The stock has been consolidating in the range of Rs650-750 from last two months. However, in yesterdays session prices manage to give consolidation breakout above the key resistance area of Rs750 levels with comparatively larger volumes.
The consolidation breakout in prices with higher volumes suggests more upside in prices in coming sessions. Traders can accumulate the stock in a range of Rs800-810 for the target of Rs930 with a stop loss below Rs725.