These 5 stocks could return up to 15% in short ter

By Shitij Gandhi (Senior Research Analyst ,SMC Global Securities) As per current derivative data, Nifty can move towards 10,300 as the market undertone remains bullish with the support of consistent FIIs buying and short covering. There is still a lot of outstanding short position in Nifty futures and Index calls. So, one can expect another round of short covering in the next two to three trading sessions. The Nifty scaled 10,300 as the market undertone remained bullish with the support of consistent FII buying and short covering. Derivative data indicates bullish scenario will continue in Nifty with multiple strong supports at lower levels. Various supports on the downside lie at 10,150, 10,100 & 10,050 spot levels. Currently, Nifty is moving higher with a decent addition in open interest which suggests strength in the current trend as option writers were active in the recent rally. We have seen put writing in 10,000, 10,100 & 10,200 puts along with unwinding in calls. October series derivative data is stronger than September series as we have been continuously seeing open interest addition post-expiry. Here is a list of top 5 stocks which could give up to 15 percent upside in the short term: Automative Axles: BUY| Target Rs1060| Stop Los Rs850| Return 15% The stock has given a consolidation breakout above Rs775 levels in the recent past and since then the Bull Run has been intact in the scrip. From the past few weeks, the stock has been consolidating in range of 850-950 and has formed bullish flag formation on daily charts. Traders can accumulate the stock in a range of Rs920-930 for the target of Rs1060 with a stop loss below Rs850. Triveni Engineering Industries Ltd: BUY| Target Rs108| Stop Loss Rs88|Return 13 % After testing a high of Rs106 levels in the recent past, the stock witnessed profit booking at higher levels and retraced towards Rs85 levels and took support at its 100-days exponential moving average on daily charts. In the current scenario, the stock has formed pennant formation on daily chart interval and has given break above the falling trend line. Traders can accumulate the stock in a range of Rs95-97 for the upside target of Rs108 with a stop loss below Rs88. PTC India Financial Services: BUY| Target Rs45| Stop Loss Rs37.50| Return 12% After recovering sharply from its recent lows, the stock has once again managed to hold above its 200 days exponential moving average on daily charts. Furthermore, it has formed the inverted head and shoulder formation on daily and weekly chart interval and has also given breakout above the neckline. Traders can accumulate the stock in a range of 40-41 for the target of 45 with a stop loss below 37.50. KSB Pumps: BUY| Target Rs935| Stop Loss Rs765| Return 13% The stock has been trading high and upholding its rising channel by making higher highs and higher lows on daily charts. This week it has given fresh breakout in prices along with firm volumes and multiple supports on the downside at its short and long term moving averages. The trend is expected to continue in coming sessions as well. So, traders can accumulate the stock in a range of 825-835 for the target of 935 with a stop loss below 765. Raymond: BUY| Target Rs1000| Stop Loss Rs840| Return 11% After testing 900 levels in recent past, stock retraced towards 800 levels and took support at its 100 days exponential moving average on daily charts. Since then, recovery has been seen in prices as the stock has formed symmetrical triangle formation on daily charts and given fresh breakout in prices above the pattern formation. Traders can accumulate the stock in a range of 900-910 for the target of 1000 with a stop loss below 840. Disclaimer: The author is Senior Research Analyst, SMC Global Securities Ltd. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.