Nifty likely to find support near 10250; 5 stocks which could give up to 15% return.

Shitij Gandhi(Senior Research Analyst, SMC Global Securities Ltd.)
There is lack of buying interest and discomfort in the market. The next support level is placed around 10250 followed by 10200 levels.

The Nifty dragged down from higher levels due to the liquidation of long positions. The recent data has turned slightly negative and is indicating the probability of some more profit booking moving forward.

We have seen aggressive call writing and put unwinding in recent trading sessions. The Call writes were active in 10500 and 10600 strike calls indicating limited upside.

This clearly indicates lack of buying interest and discomfort in the market. The next support level is placed around 10250 followed by 10200 levels.

Here is a list of top five stocks which could give up to 15% return in short term:

CG Power & Industrial Solutions: BUY| Target Rs98| Stop Loss Rs78| Return 15%

On the daily charts, the stock has taken a support at its 200-days exponential moving average (DEMA) multiple times and now finally given a consolidation breakout above the weekly resistance levels of 87 with a sudden rise in volumes.

On the daily chart, it has also formed a double bottom formation around Rs76 levels. The stock has multiple supports placed on the downside at its short and long-term moving averages. Traders can accumulate the stock range of Rs85-88 for the target of Rs98 and a stop loss below Rs78.

AIA Engineering: BUY| Target Rs1540| Stop Loss Rs1300| Return 11%

In the recent past, the stock has shown smart recoveries from lower levels and has once again managed to hold above its 200-days exponential moving average (DEMA) on the daily charts.

Moreover, from the technical front, the stock has formed a cup and handle formation on the daily charts which is generally traded as a bullish pattern.

The pattern suggests that once again upside in prices can be seen moving forward. Traders can accumulate the stock in the range of 1385-1395 for the upside target of 1540 and a stop loss below 1300.

Kalpataru Power Transmission Ltd: BUY| Target Rs445| Stop Loss Rs365| Return 12%

The stock has been consistently maintaining its Bull Run and last week it has given a symmetrical triangle breakout on the daily charts above Rs380 levels with rising volumes.

Ascending triangles are generally considered bullish and are most reliable when found in an uptrend. Traders can accumulate the stock in the range of 395-400 for the target of 445 and a stop loss below Rs365.

Brigade Enterprises: BUY| Target Rs315| Stop Loss Rs260| Return 12%

The stock has formed bullish flag formation on weekly charts and has given breakout above the falling trend line of pattern formation.

On the daily charts, prices are also getting support through positive divergence on secondary oscillators like Rsi and stochastic. Traders can accumulate the stock in the range of 280-285 for the target of 315 and a stop loss below Rs260.

OMAXE: BUY| Target Rs238| Stop Loss Rs195| Return 13%

The stock has been consolidating in range of 190-210 from last six months. The consolidation breakout in prices was witnessed last week when prices manage to give breakout above 210 levels with rising volumes.

The breakout in prices along with supportive technical indicators after six months of consolidation uggests that once again bulls are getting active into the scrip. Traders can accumulate the stock in the range of 210-215 for the target of 238 with a stop loss below 195.