Momentum plays? Nearly 200 BSE stocks hit fresh record highs in April

Experts feel quality names are helping the index break past key resistance levels, which is a positive sign for the bulls and also assures that the momentum is likely to continue.

The Sensex closed just shy of Mount 35K on Friday but has rallied over six percent so far in April. The bulls managed to push the index higher in April but the Sensex is still trading over four percent short of its record peak of 36,443.98.

While the index might have to rally another 1,400 points to touch a fresh peak, the momentum on D-Street drove 195 stocks to fresh record highs in April. These include: MRF, Nestle India, Abbott India, Venky’s India, Tata Consultancy Services (TCS), VST Tillers Tractors, Jubilant FoodWorks, Reliance Industries, V-Mart Retail, TeamLease Services, Britannia Industries, Shriram Transport Finance Company, Kotak Mahindra Bank, HCL Technologies, Mindtree, Escorts, Mahindra & Mahindra (M&M), Indiabulls Ventures and Avenue Supermarts (D-Mart).

Most companies such as TCS, Reliance Industries (RIL) and Shriram Transport were in focus on expectations of strong results for the quarter ended March 2018.

Kotak Mahindra Bank and HCL Technologies will announce their earnings this week. Radhakishan Damani's Avenue Supermarts, which hit a market capitalisation of Rs 92,000 crore, will report its result on May 5.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in, said that on one hand we have stocks hitting new highs, but there are still plenty of stocks which are trading below their 50-days moving averages.

“Unless they also register fresh breakouts and start contributing, more broad-based strength in the market can’t be witnessed. Momentum, backed by fresh highs, should be the natural choice of investors/traders. That is looking like a safe strategy to play this leg of an upswing,” he said.

On the BSE, more than 300 stocks hit fresh 52-week highs. These include Hawkins Cookers, National Peroxide, Tata Sponge, Divi’s Laboratories, Agro Tech Foods, Tech Mahindra and Mastek.

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Nifty may again challenge critical resistance around 10,640; Buy Tata Steel for short term

“Nifty continues consolidating around 50% Fibonacci retracement of the last downfall from the all-time high. Indication of reversal is not visible yet.” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.

Jaydeb Dey

The Nifty yesterday ended 0.47 percent up at 10,619.00. Session long consolidation around 10,550 followed by sharp recovery in the last hour led to a Hammer candle on daily chart. Candle pattern suggests, Nifty may once again retest critical resistance placed around 10,640.

Next leg of up-move towards 10,670 is likely if and only if 10,640 gets broken out decisively. Downside supports are placed around 10,560 and 10,530.

On the Nifty hourly chart; it ended with a Flag pattern breakout, which implies Nifty critical resistance placed around 10,640 may again be challenged. Downside supports are placed around 10,560 and 10,530.

Nifty patterns on multiple time frames show; it ended the session with a Hammer candle on the daily chart towards ending the session on a positive not. However, critical resistance of 10,640 has to be taken out on the up-side towards unfolding next leg of up-move up to 10,670.

The Bank Nifty yesterday ended 0.79 percent up at 25,010.90. Upside resistances are placed around 25,100 and 25,250. Downside pivotal support is placed around 24,700.

Based on thorough technical study, the research  firm recommends Tata Steel which can give up to 5% return in the near short term:

Tata Steel | Rating: Sell | Target: Rs 600, stop loss: Rs 555, Return: 5%

After reacting down from its recent high of Rs 624, the stock is again approaching towards long-term upward trend line support placed around Rs 570 levels.

Based on above mentioned observations, we recommend Tata Steel as a buy for the short-term upside target of Rs 600.

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Buy or Sell: Top stock trading ideas by Dharmesh Shah, Prakash Gaba & Rajesh Agarwal

Prakash Gaba of prakashgaba.com recommends buying Hindustan Unilever with target at Rs1480 and stop loss at Rs 1452 and Tata Global Beverage with target at Rs 295 and stop loss at Rs 286.

The Nifty witnessed selling pressure post opening but managed to retrace about 50 percent of its intraday losses which made a ‘Hanging Man’ kind of pattern on the daily charts.

The market witnesses a significant selloff in the trading session just like we saw in Wednesday’s trading session but still manages to recoup some of the losses and closes below the opening level.

The index opened at 10612.40 which was similar to its intraday high of 10612.60. Bears pushed the index below 10600 to hit an intraday low of 10536 before closing at 10,570, down. The index closed below its 5-days exponential moving average (DEMA) placed at 10572.

Traders are advised to remain cautious ahead of F&O expiry on Thursday as there could be wild movements on either side. But, as long as 10500 holds, bulls have nothing to fear, for now.

India VIX moved up by 5.14 per cent at 12.50. On the options front, maximum Put OI is seen at 10500 followed by 10400 strikes while maximum Call OI is seen at 10700 then 10600 strikes.

According to Pivot charts, the key support level is placed at 10,533.8, followed by 10,497.1. If the index starts moving upwards, key resistance levels to watch out are 10,609.9 and 10,649.3.

The Nifty Bank index closed at 24,814.4. The important Pivot level, which will act as crucial support for the index, is placed at 24,701.53, followed by 24588.67.

On the upside, key resistance levels are placed at 24,960.33, followed by 25,106.27.

Below are the top trading ideas by market experts which can give good returns today:

Dharmesh Shah of ICICIdirect.com

Buy Emami with target at Rs1360 and stop loss at Rs 1012

Buy Royal Orchid Hotels with target at Rs 259 and stop loss at Rs 205

Buy Majesco with target at Rs 632 and stop loss at Rs 522

Prakash Gaba of prakashgaba.com

Buy Hindustan Unilever with target at Rs1480 and stop loss at Rs 1452

Buy Tata Global Beverage with target at Rs 295 and stop loss at Rs 286

Sell Bank of Baroda with target at Rs 130 and stop loss at Rs 140

Sell Tata Steel with target at Rs 574 and stop loss at Rs 594

Rajesh Agarwal of AUM Capital

Buy Automotive Axles with target at Rs 1580 and stop loss at Rs 1490

Buy UltraTech Cement with target at Rs 4210 and stop loss at Rs 4070

Buy Shilpa Medicare with target at Rs 493 and stop loss at Rs 455

Sell Bharat Heavy Electricals with target at Rs 81 and stop loss at Rs 89

Sell Wipro with target at Rs 277 and stop loss at Rs 294

Capital Ways Investment Adviser
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Accumulate Praj Industries, target 107: Shitij Gandhi

"The positive divergence on secondary indicators are supporting the up move in prices along with multiple supports at its short and long-term moving averages," says Shitij Gandhi, Senior Research Analyst at SMC Global Securities.

Shitij Gandhi

On the daily charts Praj Industries has formed double bottom formation around Rs 80 levels and bounce back sharply to once again regain the momentum above its 200-days exponential moving average.

In addition, the stock has also formed inverted head and shoulder formation on daily charts and is on verge of a breakout above its neckline.

The positive divergence on secondary indicators are supporting the up move in prices along with multiple supports at its short and long-term moving averages. The traders can accumulate the stock in a range of Rs 95-98 for the upside target of Rs 107 with a stop loss below Rs 89.

Capital Ways Investment Adviser
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With 70% gains since listing, HDFC Sec sees 14% upside in this 75-year-old bank

HDFC Securities has cited factors such as strategic clarity, tight execution, superlative growth off a low base as being key to making RBL Bank attractive for long term investors.

After having gained over 70 percent since its listing in 2016, RBL Bank is on the radar of HDFC Securities. The broking firm has initiated coverage on the stock with a target of Rs 573 per share, an upside of 14 percent to its Monday's close of Rs 502 per share.

The brokerage has cited factors such as strategic clarity, tight execution, and superlative growth off a low base as being key to making the stock attractive for long-term investors.

“It is sticking to a narrow (and carefully chosen) range of products, even as it explores new credit segments via pilot initiatives. Meanwhile, cross-selling (credit cards and PL) within the current business mix provides opportunities,” the brokerage house said in a report.

The research firm is also anticipating visibility of strong growth ahead as the bank’s management is confident of growing the loan book at 30-35 percent CAGR. “With increasing retail/SME tilt, a calibrated risk appetite on corporate loans, deep relationships and an expanding client base, this looks feasible to us. We have factored 33 percent loan CAGR over FY18-20e”

In fact, it said that the asset quality of the bank is impeccable. The aversion for project finance, greenfield risks and a consequent focus on shorter tenure loans has helped the bank keep asset quality under control (GNPA 1.6%) in a relatively stressed credit environment.

“Impaired assets at 1.15% (Q3 FY18) compare well with peers (Yes Bank at 3.24%, and Federal Bank at 3.04%). We have factored in 1.45% slippages and LLP of 67bps over FY18-20e,” the brokerage said.

While expanding fee streams and the ability to tweak savings account rates are key profit levers, the brokerage said its high (and well directed) spend on people and technology will limit operating leverage for now.

At the close of market hours on April 23, RBL Bank was quoting Rs 502.40 per share, down Rs 3.65, or 0.72 percent, on the BSE. It touched an intraday high of Rs 510.00 and an intraday low of Rs 501.00.

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Nifty likely to get into a corrective downward wave; Buy Wipro, sell ICICI Bank for short term

“Nifty breaking out cluster of resistances placed around 10,570 to 10,600 is unlikely as of now” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.

The Nifty previous Friday ended 0.01 percent down at 10,564.05. Its range bound movement below the cluster of resistances placed around 10,570 to 10,600 continued for the fourth consecutive session.

Day long oscillation within a tiny range for the entire session led to a Doji candle on daily chart. On the weekly chart it ended 0.8 percent up. Higher highs- higher lows pattern continues on the weekly chart towards ending with another bullish Marubozu candle, which implies this uptrend is likely to pull ahead towards pivotal resistances placed around 10,630 and 10,700. Hence, buy-on-dips is the strategy to be followed.

However, ending the last trading session of the week with a Doji candle implies hesitancy among traders may persist in the beginning of the next week. Hence, buying-on-dips is advised. Bulls may find down side critical supports placed around 10,480 and 10,420 very alluring.

On the Nifty hourly chart; negative divergence in RSI is still intact, which may continue building selling pressure on rise around 10,570. Midway resistance is placed around 10,530.

Nifty patterns on multiple time frames show; it ended on indecisive note on the last day of the week. Hence, nervousness may persist in the first half of the week. However, considering the broader trend, we prefer buy on dips around critical supports placed around 10,480 and 10,420.

Nifty patterns on multiple time frames show; it ended on indecisive note on the last day of the week. Hence, nervousness may persist in the first half of the week. However, considering the broader trend, we prefer buy on dips around critical supports placed around 10,480 and 10,420.

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Book profits on rallies as Nifty50 likely to consolidate in a range of 10,300-10,500

We expect Nifty50 will continue to consolidate in a broad range of 10300-10500 for the next few trading sessions before giving any fresh breakout on either side," says Aditya Agarwal, Head Technical Research at Way2Wealth Brokers Pvt. Ltd.

By Aditya Agarwal

After confirming its breakout from ‘downward sloping’ trend line channel, Nifty has seen a decent traction and precisely retested its previous swing high of 10,479.

Now, the daily RSI (14) is approaching towards 60 levels whereas the hourly chart signals multiple bearish divergences. On the weekly line chart, the previous bottom of 10,455 (weekly closing of February 9, 2018) may act as an immediate hurdle.

Any sustainable move above 10500 will drive the index higher towards its crucial resistance of 10,630. On the flip side, 10,355 and 10,290 are near-term support for Nifty50.

The options data is indicating a rangebound move for Nifty in the short-term. The maximum call concentration is placed at 10,500 which indicates a stiff resistance whereas on the lower side, put writing was seen at 10,300 which will act a strong support zone for indices.

Overall, we expect Nifty50 will continue to consolidate in a broad range of 10300-10500 for the next few trading sessions before giving any fresh breakout on either side.

Here is a list of top three stocks which could give up to 9% return in the short term:

NIIT Technologies Ltd: Buy around Rs 912 – 903 | Target: Rs 1000 | Stop loss: Rs 860 | Timeframe: 15 to 21 sessions | Return 9%

Looking at the daily chart, the stock formed a strong base near Rs 860 and a Descending Triangle pattern. Recently, the stock confirmed its breakout from the said pattern and resumed its primary trend.

The daily ‘higher top higher bottom’ formation is intact and indicates that the primary trend is on the upside. Therefore, we recommend traders to accumulate this stock in the range of Rs 912 to Rs 903 with a price target of Rs 1000 and a stop loss placed below Rs 860.

Hero MotoCorp Ltd: Buy around Rs 3725 – 3700 | Target: Rs 4030 | Stop loss: Rs 3600| Timeframe: 15 to 21 trading sessions| Return: 7.6%

Looking at the daily chart, the stock consolidated in a range and has formed a triangle pattern. During the last week, the stock confirmed its breakout from said pattern.

Recently, it saw a pullback and retested the trend line of the triangle pattern. The daily RSI (14) precisely took support near 60 levels which is a bullish indication.

Thus, we advocate traders to buy this stock in the range of Rs 3725 – 3700 with a price target of Rs 4000. A stop loss should be placed below Rs 3600.

Tata Steel Ltd: Sell around Rs 603 – 608 | Target: Rs 550 | Stop loss: Rs 630 | Timeframe: 15 to 21 trading session | Return 8%

Tata Steel has seen a decent correction from its 52-week high and hit a low of Rs 553. Subsequently, it saw a decent pullback in the past few weeks and rebounded towards Rs 611.

Looking at the daily chart, Thursday’s high coincided with the downward sloping trend line drawn from the top of Rs 748. Another big factor which supports bearish bias is that the previous bottom of Rs 607 had reversed its role post-breakdown and is likely to act as a strong hurdle.

Hence, we advise traders to go short in a range of Rs 603 to Rs 608 with a price target of Rs 550. A stop loss should be placed above Rs 630.

Capital Ways Investment Adviser
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info@capitalways.com
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Close above 10,440 to signal further upmove for Nifty; top 5 stocks to buy in near term

"Nifty has formed 'Dragon Fly' candlestick pattern around key hurdle zone i.e. 50 and 100 SMA which coincides at 10,440 levels and 38.20 percent Retracement levels on daily time frame. The Index has to close above 10,440 levels for further upmove," says Rajesh Agarwal of AUM Capital.

AUM Capital

Benchmarks closed with marginal gains on profit booking in oil & gas, bank, financial, energy, FMCG and utilities sectors despite higher Asian cues. Sentiment was also subdued on concerns that inflation worries could resurface on the back of rising crude oil prices.

Brent crude futures surged more than 3 percent on Tuesday to their highest since late 2014, at USD 71.34 a barrel. OMCs slumped following reports that the government is asking these firms to absorb price hikes. Investors are focusing on key domestic cues of retail inflation data and industrial production data due tomorrow and corporate results starting Friday.

Technical Outlook

Nifty

Nifty has formed 'Dragon Fly' candlestick pattern around key hurdle zone i.e. 50 and 100 SMA which coincides at 10,440 levels and 38.20 percent Retracement levels (Drawn from high of 11,171.55 to low of 9,951.90) on daily time frame. This pattern is a Bearish Reversal Pattern. Now, the Index has to close above 10,440 levels for further upmove.

If it sustains below or fails to cross this mark, Nifty may witness a correction till 10,340 and 10,270 zone. Furthermore, RSI (14) has given Negative crossover.

Bank Nifty

Nifty Bank has formed 'Hanging Man' pattern around 50 SMA and 100 SMA on daily time frame. This pattern occurs mainly at the top of uptrends and can act as a warning of a potential reversal downward. It is important to emphasize that the Hanging Man pattern is a warning of potential price change, not a signal to go short. Near term hurdle seen around 25420 levels i.e. 100 SMA. Moreover, it is currently trading around 38.2 percent Retracement level on daily time frame.

Below are the top 5 stocks which acn give up to 5% return in the near term:

Dabur India | Rating: Buy | Target: Rs 355, stop loss: Rs 336 | Return: 3%

Sun Pharmaceutical Industries | Rating: Buy | Target: Rs 536, stop loss: Rs 508 | Return: 3%

GNA Axles | Rating: Buy | Target: Rs 543, stop loss: Rs 487 | Return: 5%

TVS Electronics | Rating: Buy | Target: Rs 514, stop loss: Rs 465 | Return: 5%

Pidilite Industries | Rating: Sell | Target: Rs 955, stop loss: Rs 1010 | Return: 3%

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
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Buy Avenue Supermarts, target Rs 1620

"On weekly scale, Avenue Supermarts is trading in upward momentum with moderate volume. The weekly Relative Strength Index (RSI) is showing an upward momentum and the MACD is continuously trading above the zero line with a positive crossover," says Abhishek Mondal, Research Analyst, Guiness Securities.

Guiness Securities

The NSE benchmark Nifty50 settled almost flat in a choppy trading session, modestly up by 22.90 points as caution prevailed ahead of the key economic data of retail inflation and IIP.

On Tuesday, after a gap up opening, markets remained range-bound for most of the day but managed to close above 10400 levels with modest gains of 0.22 percent at 10,402.25; forming a Doji Candle pattern on the daily scale.

If the Nifty50 manages to hold and sustain above 10,440-mark (50DMA) in the next few trading sessions, it can move higher till the resistance of 10,560 levels (50 percent retracement of January to March fall – 10,561).

The immediate support is seen around 10,348 (100DEMA) and 10,300 levels. The Relative Strength Index – RSI on the Daily Chart is at 55.77; showing upward momentum and MACD is trading with positive crossover but still remains below the zero line, which indicates that the bias could remain neutral to bullish for the next few trading sessions.

On weekly scale, Avenue Supermarts is trading in upward momentum with moderate volume. The weekly Relative Strength Index (RSI) is showing an upward momentum and the MACD is continuously trading above the zero line with a positive crossover whereas, +DI continuously trading above –DI.

Based on the above-mentioned observations positional traders can buy the stock in the range of Rs 1480-1490 with a stop loss below Rs 1420 (closing) for the target of Rs 1620 and return of 8.87 percent.

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
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Nifty likely to open higher; 3 stocks which can give up to 10% return

Trends on SGX Nifty indicate a flat opening for the broader index in India, a marginal rise of 1 point or 0.01 percent. Nifty futures were trading around 10,394-level on the Singaporean Exchange.

The Nifty50 is expected to open higher on Tuesday tracking positive trend seen in other Asian markets. The index closed 47 points higher at 10,379 on Monday.


Trends on SGX Nifty indicated a positive opening for the broader index in India, a rise of 41 points. Nifty futures were trading around 10,434-level on the Singapore Stock Exchange.

Wall Street’s major indexes rose on Monday as a softer stance by U.S. policymakers on China tariffs powered a rebound from last week’s selloff, but stocks pared much of their gains late in the session after a report that the Federal Bureau of Investigation raided the office of President Donald Trump’s lawyer, Reuters reported.

Asian shares edged lower on Tuesday as Wall Street retreated from its highs. The Nikkei 225 edged down by 0.59 percent and the Topix slipped 0.44 percent. South Korea's Kospi index, meanwhile, lost 0.68 percent, Reuters reported.

Stocks in news:

Axis Bank: Shikha Sharma asks Board to reconsider period of her re-appointment as Bank Head. Board has accepted Shikha Sharma's request pending approval from RBI

HDFC hikes retail prime lending rate by 20 bps w.e.f April 1

Alembic to buyback 1,02,50,000 equity shares at Rs 80 per share

Wipro: Telecom client in India filed a petition to initiate CIRP with NCLT. The company likely to see a negative impact of 65-75 bps on net income level

HealthCare Global Enterprises approved the allotment of 9,34,500 equity shares at Rs 321 per share on Preferential basis to the promoter of the company

ICICI Bank: Fitch has said that allegations pose reputational risks and will take appropriate action if risks to reputation and financial profile rise

IDFC Bank: The lender has cut MCLR across all tenors by 5bps effective April 8

Technical Recommendations:

We spoke to HDFC Securities and here’s what they have to recommend:

KEI Industries Ltd: BUY| Target Rs. 480 | Stop-loss Rs 402 | Return 11%

KNR Construction: BUY| Target Rs. 340 | Stop-loss Rs 284| Return 11%

Allahabad Bank: BUY| Target Rs. 60| Stop-loss Rs 51 | Return 10%

Capital Ways Investment Adviser
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Nifty likely to open lower; 3 stocks which can give up to 10% return

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 35.5 points or 0.34 percent. Nifty futures were trading around 10,306-level on the Singaporean Exchange.

The Nifty50 is expected open flat-to-lower on Monday tracking muted trend seen in other Asian markets and weak handover from Wall Street. The Nifty50 index closed 6.45 points higher 10,331.

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 35.5 points or 0.34 percent. Nifty futures were trading around 10,306-level on the Singapore Stock Exchange.

US stocks dropped about 2 percent on Friday, with the Dow falling more than 570 points, as US President Donald Trump's latest tariff threat on Chinese imports fuelled increasing concern over a US trade war with China, Reuters reported.

Asian shares started flat on Monday as US President Donald Trump kept up his twitter war with China over trade just a couple of days before President Xi Jinping gives a keynote speech on his policy priorities, Reuters reported.

Losses across the region were minor with MSCI’s broadest index of Asia-Pacific shares outside Japan off just 0.05 percent. Japan’s Nikkei wavered either side of flat, and South Korea edged ahead by 0.1 percent.

Stocks in news:

Wipro sold 63% of its stake in Wipro Airport IT to Antariksh Softtech

Akzo Nobel: The Board has recommended a share buyback to the tune of Rs 235.20 crore.

Dabur India: The firm has completed the acquisition of two personal care products firms in South Africa.

Lemon Tree Hotels to make debut today

State Bank of India: Bank puts 15 NPAs worth Rs 1,063 crore for sale

Punjab National Bank: Bank puts 15 NPAs worth Rs 1,063 crore for sale

Shree Renuka Sugars: Company to divest Brazilian operations

Dewan Housing Finance: Company plans to raise up to Rs 1,000 crpre via debentures on private placement basis

Ballarpur Industries: Company to sell Malaysian unit for USD 310 million (approx Rs 2,011 crore)

We spoke to 5nance.com and here’s what they have to recommend:

Gravita India Ltd: BUY| Target Rs192 | Stop-loss Rs165 | Return 10%

Nath Bio-Genes Ltd: BUY| Target Rs574 | Stop-loss Rs530 |Return 6%

Adani Transmission Ltd: SELL | Target Rs170 | Stop Loss Rs184 |Return 5%

Capital Ways Investment Adviser
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info@capitalways.com
8517810864

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Nifty to consolidate between 10,100-10,380; 3 stocks which could give up to 16% return

On the lower side, 10100 will act as a strong support and till the time index is holding above this level every meaningful correction is an opportunity to enter in the long position.

Aditya Agarwal

The Thursday’s sharp upmove in Indian markets can be termed as a Bear Trap as Nifty opened higher with a significant gap and eventually surpassed the crucial resistance zone of 10,280 – 10,300 levels.

In that process, Nifty confirmed its breakout from ‘Downward Sloping Channel’ pattern.

The bearish engulfing candle formed on Wednesday’s trade was negated as Nifty closed above the pattern high of 10,280.

At this juncture, the hourly RSI (14) signals a Bearish Divergence hence it’s prudent to wait for some pullback to enter a long position. On the higher side, Nifty is likely to extend its ongoing short covering move towards 10,450.

Whereas on the lower side, 10,100 will act as a strong support and till the time index is holding above this level every meaningful correction is an opportunity to enter in the long position.

Here are the lists of top 3 stocks which could give up to 16% return:

Apollo Tyres: BUY around 290 – 288| Target 340| Stop loss 270| Timeframe 15 to 21 sessions| Return 16%

On the weekly chart, the stock confirmed its breakout from the Bullish Cup & Handle pattern on Thursday. The volume activity too started accelerating which support our hypothesis.

The daily as well as weekly RSI (14) entered inside the 60 levels. The conservative target of cup & handle formation comes near Rs340. A stop loss should be placed below Rs270.

TATA Elxsi Ltd: BUT around 1020 – 1010| Target 1150| Stop loss 950| Time frame 15 to 21 trading sessions| Return 12%

Tata Elexi has been consolidating in a narrow range of 960-1060 for almost last 2 months and on daily charts, the stock has formed a Descending Triangle pattern. The said pattern is a continuation of an ongoing uptrend.

The weekly Higher Top and Higher bottom formation is intact. In Thursday’s trade, the stock confirmed its breakout from the triangle pattern.

Hence, we advocate traders to buy this stock in a range of 1020 to 1010 with an upside price target of 1150. A stop loss should be placed below 950 on a closing basis.

Bharat Forge Ltd: SELL around 730 – 735| Target 670| Stop loss 760| Time frame 15 to 21 trading session| Return 7%

After posting an all-time high of 798, the stock corrected sharply and hit a low of 678. Subsequently, stock saw decent pullback however it is struggling near 730 – 740 range which coincided with its previous resistance zone as previous support became an immediate hurdle.

The hourly RSI (14) is signaling an overbought condition. Hence, we recommend traders to go short in a range of 730 to 735 with a price target of 670. A stop loss should be placed at 760.

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
8517810864


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Nifty likely to consolidate further; top 5 stocks to buy in the near term

"Nifty Bank closed lower at 24129.50 down 381 points ahead of RBI policy due later today around 2.30 pm. It opened with positive note but failed to close above its short term moving average of 20 EMA i.e. 24465 marks which is suggesting downfall to continue in near term," says Rajesh Agarwal of AUM Capital.

AUM Capital

Benchmarks traded on a volatile note and ended in red with cut of more than one percent taking cues from their key global counterparts that slipped on the back of increased fears of a full-scale global trade war. Selling during the second half pulled the markets lower with Nifty slipping by 125 points, while Sensex managed to hold 33,000 mark. The market breadth was in favour of declines with 3 stocks advancing against four declining ones.

Investors are also awaiting decision on monetary policy by Reserve Bank of India (RBI). The central bank is expected to keep monetary policy steady at its April meeting but shift to a hawkish stance by the end of this year and raise interest rates early in 2019 as inflation pressures build.

Technical Outlook

Nifty

Nifty snapped two day winning streak amid US-China trade worries. It opened higher but failed to hold gains and closed lower at 10128.40 Down 1.14 percent. It has formed 'Bearish Engulfing' pattern around supply zone indicating continuation of previous down move. Nifty failed to cross 'Upper Band' of Falling Channel i.e. 10260 levels decisively and reverted back to the channel. Now it has to close above 10260 levels for fresh up-move. We are expecting the Index to consolidate within a range.

Bank Nifty

Nifty Bank closed lower at 24129.50 down 381 points ahead of RBI policy due later today around 2.30 pm. It opened with positive note but failed to close above its short term moving average of 20 EMA i.e. 24465 marks which is suggesting downfall to continue in near term. Any significant breach below 24000 marks might drag Nifty Bank further lower.

Furthermore, on hourly scale, Index took hurdle around 50 percent Retracement level. We are expecting Index to consolidate within a range in near term.

Below are the top 5 stocks which can give up to 9% return in the near term:

Rural Electrification Corporation | Rating: Buy | Target: Rs 134, stop loss: Rs 124 | Return: 5%

Balrampur Chini Mills | Rating: Buy | Target: Rs 85, stop loss: Rs 74 | Return: 9%

Tata Steel | Rating: Sell | Target: Rs 542, stop loss: Rs 575 | Return: 3%

Dewan Housing Finance Corporation | Rating: Sell | Target: Rs 512, stop loss: Rs 528 | Return: 1%

Apollo Hospitals Enterprise | Rating: Sell | Target: Rs 1034, stop loss: Rs 1096 | Return: 3%

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
8517810864


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Nifty to start on a flat note; 3 stocks which can give up to 14% return

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 7.5 points or 0.07 percent.

The Nifty50 is expected to open flat on Wednesday tracking muted trend seen in other Asian markets. The Nifty50 closed 33 points higher at 10,245 on Tuesday.

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 7.5 points or 0.07 percent. The Nifty futures were trading around 10,268-level on the Singaporean Exchange.

The three major US stock indexes ended higher after a choppy session on Tuesday as investors looked forward to earnings season while the S&P 500 pushed above a key support level, Reuters reported.

The Dow Jones Industrial Average rose 389.17 points, or 1.65 percent, to 24,033.36, the S&P 500 gained 32.57 points, or 1.26 percent, to 2,614.45 and the Nasdaq Composite added 71.16 points, or 1.04 percent, to 6,941.28.

Asian markets were mixed in early Wednesday trade as Japanese stocks tracked gains seen on Wall Street overnight on a bounce in large cap technology names.

Japan's Nikkei 225 edged up by 0.42 percent and Topix crept higher by 0.16 percent. South Korea's benchmark Kospi index slipped 0.09 percent, weighed down by declines in the technology sector, CNBC reported.

Stocks in news:

Bharat Forge and Ramkrishna Forgings in focus - North America Mach Class 8 truck sales up 102 percent at 46,900 units versus 23,215 units YoY: Agencies

Tata Motors: March auto sales
-JLR US sales up 10.2 percent at 14,232 units versus 12,918 units (YoY)
-Jaguar US sales down 34.2 percent at 3,260 units versus 4,953 units (YoY)
-Land Rover US sales up 37.8 percent at 10,972 units versus 7,965 units (YoY)

ICICI Securities: ICICI Securities make their debut on the bourses on Wednesday, it will be the first time in almost three years that a company whose public issue remained largely undersubscribed will list on the stock exchanges.

Medhani: Shares of Mishra Dhatu Nigam (MIDHANI) will list on BSE and NSE on Wednesday. The initial public offer (IPO), which was oversubscribed by 1.21 times, was opened for subscription from March 21 to March 23. The company had fixed the price band of Rs 87-90 for the public offer.

Zensar Technologies: Technology firm Zensar today said it has bagged a four-year deal from the City of San Diego for network services for a deal value of up to USD 79 million.

Technical Recommendations:

We spoke to Guiness Securities and here’s what they have to recommend:

InterGlobe Aviation Ltd: Buy | Close: Rs 1367.85 | Target: Rs 1500 | Stop loss: Rs 1282 | Return: 9.65%

Jamna Auto Industries Ltd: Buy | Close: Rs 85.85 | Target: Rs 98 | Stop loss: Rs 78.50 | Return: 14.15%

Exide Industries Ltd: BUY | Close: Rs 232.95 | Target: Rs 260 | Stop loss: Rs 215 | Return: 11.59%

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
8517810864

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Nifty to start below 10,200; 3 stocks which can give up to 11% return

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 56.5 points or 0.55 percent. The Nifty futures were trading around 10,208-level on the SGX.

The Nifty50 is expected to open lower on Tuesday tracking muted trend seen in other Asian markets. The Nifty50 index closed 98 points higher at 10,211.

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 56.5 points or 0.55 percent. The Nifty futures were trading around 10,208-level on the Singaporean Exchange.

Wall Street shares plunged on Monday as investors fled technology stocks amid resurgent trade war worries, with key indexes trading below their 200-day moving averages and the S&P 500 closing below that pivotal technical level for the first time since June 2016, Reuters reported.

The Dow Jones Industrial Average fell 458.92 points, or 1.9 percent, to end at 23,644.19 after dipping below its 200-day moving average. The S&P 500 fell 58.99 points, or 2.23 percent, to 2,581.88 and the Nasdaq Composite dropped 193.33 points, or 2.74 percent, to 6,870.12.

Asian shares slid in early trade, with Japan leading losses in the region after markets stateside came under pressure from the drop in tech stocks and trade-related worries, CNBC reported.

Stocks in news:

Motherson inks pact to acquire Reydel Automotive for USD 201 mn

JSW Steel: In the capacity of an investor, joins Numetal to submit bid for Essar Steel

Ashok Leyland: CARE Ratings upgraded the ratings of its short and long-term bank facilities. Meanwhile, the rating of its commercial paper has been reaffirmed.

Fortis Healthcare: Minority shareholders of the firm are said to have opposed the deal with Manipal.

NTPC: The company has said to have achieved 53,000 MW of commissioned capacity, according to a Hindu Business Line report.

Shree Cements to consider final dividend on April 28, 2018

Neuland Laboratories board meeting on April 9, 2018, to consider a proposal for raising funds by way of issuance of equity shares

BEL records Rs 10,000 crore turnover

HAL records Rs 18,000 cr turnover in FY18

Technical Recommendations:

We spoke to HDFC Securities and here’s what they have to recommend:

Surya Roshni: BUY| Target Rs. 435 | Stop-loss Rs 380 | Return 8%

Manappuram Finance Ltd: BUY| Target Rs. 120 | Stop-loss Rs 108 | Return 7%

Hind Oil Exploration (HOEC): BUY| Target Rs. 128 | Stop-loss Rs 110 | Return 11%

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
8517810864

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