Podcast | Day 1 of June series: Top 3 buy ideas that could deliver 8-11% return

The support level for the index now gets upgraded to 26,500. The Nifty is approaching its crucial hurdle of 10,800.

It turned out to be a stunning futures and options (F&O) expiry session on Thursday as indices registered handsome gains. Option writers ran for cover as short covering in index futures and out of the money call options lifted the Nifty and the Bank Nifty higher.

In our last week’s article, we had mentioned that the Bank Nifty had resumed its uptrend and the current move has confirmed the same.

In fact, Thursday’s rally has seen the Bank Nifty breakout from a classic Cup and Handle pattern on the smaller timeframe chart, which indicates that the current rising trend would extend further.

As per our projections, the Bank Nifty has the potential to rallying towards 27,500 levels.

The support level for the index now gets upgraded to 26,500.
The Nifty is approaching its crucial hurdle of 10,800. A break above the resistance would also lift the Nifty towards 10,920 levels.

After falling sharply in the past three quarters, the stock is finally showing some signs of the base building at the current juncture. In fact, IDFC Bank has also formed a double bottom formation.

In addition, clear divergence is visible on the relative strength indicating a fresh up move is on the cards. We expect the stock to rally towards its potential target of Rs 45 in the medium term.

L&T Technology Services (LTTS): Buy| Target: Rs 1,436| Stop Loss: Rs 1,275| Returns 8%

The stock had broken out from a Symmetrical Triangle pattern on the daily chart in the previous week and is sustaining above the same. The 50-DEMA is proving to act as a strong support every-time the stock fell sharply.

Given the consolidation post breakout, we expect the momentum to extend further in the coming weeks. The medium-term target is expected at Rs 1,436 levels, translating into 8 percent returns.

Coal India Ltd: Buy| Target: Rs 319| Stop Loss: Rs 283| Returns 8%

The stock has been consolidating for the past four months and has finally broken out from a Rectangular Channel pattern on the daily chart.

The breakout has been accompanied with a smart uptick in traded volumes. In addition, another oscillator also indicates that the current momentum is likely to extend further.

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us: 08517810864



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These 3 stocks may offer 17-19% returns in 6 months

We expect the Nifty to form a higher base by consolidating in a broader range of 10,400–10,850 that would pave the way for the next leg of the upmove.

The Nifty on the weekly chart formed a ‘Hammer’ candlestick pattern with a long lower shadow indicating buying demand emerging near the 50 percent retracement (around 10,440 levels) of the last leg of the upmove (9,952–10,929).

The index witnessed a sharp rebound from the support level and is currently consolidating near 10,600 levels. We expect the index to maintain a positive bias, amid high volatility, and extend the upmove towards 10,850 levels, which is the confluence of the 80% retracement (10,827) of the last leg of decline (10,929-10,418) and placement of the falling trend line (around 10,850 levels) drawn adjoining the January-May high.

Over the past two weeks, the index underwent a secondary phase of healthy consolidation as it cooled off from the overbought situation that developed after the 10 percent rally (9,952-10,929) seen over the last two months.

Going forward, we expect the Nifty to form a higher base by consolidating in a broader range of 10,400–10,850 that would pave the way for the next leg of the upmove.

Thus, any breather from here on should be capitalised to accumulate quality stocks in a staggered manner. The improving price structure makes us comfortable to shift the support base upward to 10,400, being the:

a) 50% retracement of the move (9,952-10,929), placed at 10,440
b) Last week’s low placed at 10,418

Structurally, the Nifty Midcap and Smallcap have held on to their March lows and formed a potential double-bottom by forming a hammer candlestick pattern on the weekly chart. The placement of the hammer candle at the bottom indicates a bullish reversal. This structural improvement augurs well for the broader market. We expect the broader markets to outperform in the coming session.

Here is a list of top three stocks that could deliver 17-19% return in the next six months:

Pfizer: Buy| Target: Rs 2,960| Stop Loss: Rs 2,240| Return 19%| Time Frame 6 months

The share price of Pfizer India is in a strong uptrend forming rising peak and rising trough and has recently registered a Flag breakout in the monthly chart highlighting the strength in the uptrend which offers a fresh entry opportunity from a medium-term perspective.

The stock entered a sideways consolidation mode after hitting a 52-week high of Rs 2,369 in mid-February 2018 and, thereafter, oscillated in a price band of Rs 2,350 to Rs 2,050 in the last three months.

Pictorially, this sideways consolidation has taken the shape of a bullish Flag pattern as highlighted in the adjoining chart.

The resolute breakout from the bullish Flag pattern in current months trade signals conclusion of the secondary corrective phase and resumption of the primary uptrend thus provides fresh entry opportunity.

The stock has major support in the range of Rs 2,150-2,200 being the confluence of 80% retracement of the previous up move from Rs 2,050 to Rs 2,549 and 12-months EMA.

Time-wise, the stock has seen a faster retracement of the last falling segment as nine weeks decline from Rs 2,369 to Rs 2,080 was completely retraced in just four weeks signalling a robust price structure.

Based on the above technical observation the stock is likely to continue with positive bias and head towards Rs 2,978 levels being the measuring implication of the flag breakout.

The height of the pole of the flag 688 points (2369-1681=688) added to the breakout area of Rs 2,300 projects upside towards Rs 2,978 (2300+ 688=2978).

AIA Engineering: Buy| Target: Rs 1,850| Stop Loss: Rs 1,440| Return 17%| Time Frame 6 months

The share price of AIA Engineering is in a strong uptrend forming a rising peak and rising trough and has recently registered a breakout above the three months consolidation (Rs 1,350-1,494). Thus, it offers a fresh entry opportunity from a medium-term perspective.

The base of the last three months consolidation is placed at the major support area around Rs 1,340-1,390 as it is the confluence of the following technical parameters:

a) A rising trend line support joining the major lows since September 2016 currently placed at | 1390
b) the long-term rising 52 weeks EMA, which has acted as strong support for the stock since April 2016
c) 80% retracement of the previous major up move (| 1273-1709) is placed around | 1360 levels

Time-wise, the stock has already taken 22 weeks to retrace just 80% of the previous 15 weeks up move from Rs 1,273 to Rs 1,709.

The slower pace of retracement of the rally is a cornerstone of a bullish price structure and indicates the corrective nature of price decline.

Among the oscillators, the weekly MACD has generated a bullish crossover above its signal line thus supports the positive bias in the stock.

Based on the above technical parameter we expect the stock to continue with its current uptrend and head towards Rs 1,850 as it is the 138.2% external retracement of the entire previous decline (| 1709-1320).

Taj GVK Hotels & Resorts: Buy| Target: Rs 265| Stop Loss: Rs 205| Return 17%| Time Frame 1 month

The stock has registered a resolute breakout above the bullish flag pattern highlighting the strength in the uptrend and offers a fresh entry opportunity from a medium-term perspective.

The base of the flag pattern is placed at the crucial support area of Rs 205-210 as it is the confluence of the 50% retracement of the previous up move (Rs 152 to 263) and the trendline support joining previous high placed around Rs 210 levels signalling robust price structure.

Time-wise, the stock has already taken 24 sessions to retrace just 50% of the previous 20 sessions up move from Rs 152 to 263. A shallow price wise correction indicates robust price structure that augurs well for next leg of up move.

Among the oscillator, the weekly 14 period’s RSI remains in an uptrend and is seen taking support at its nine period’s average thus validates the positive bias in the stock.

We expect the stock to maintain positive bias and head towards Rs 268 being the 161.8% extension of the previous up move (208-243) as projected from the recent trough of Rs 210. This signals an upside towards Rs 268 in the short-term.

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us: 08517810864


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Top stock trading ideas by market experts which are good short term bets

Prakash Gaba of prakashgaba.com is of the view that one can buy United Spirits with target at Rs 3430 and stop loss at Rs 3330 and sell Hindustan Unilever with target at Rs 1554 and stop loss at Rs 1574.

The Nifty is now trading above its crucial short-term moving averages and today’s intraday low of 10,524 will be of big importance in the coming week, suggest experts. A break below this level could again put further pressure on the index amid expiry week volatility.

On the upside, the next target for the index is placed at 10,733 levels but bulls will be able to take full control of the index if it surpasses 10,929 which was recorded on May 15, 2018.

The Nifty which opened at 10,533 slipped marginally to hit an intraday low of 10,524. Bulls took control of the index and pushed Nifty above 10,600 to hit an intraday high of 10,628 before closing the day at 10,605, up 91 points.
India VIX fell down up by 4.46 percent at 12.55 levels. On the options front, maximum Put OI is intact at 10,500 followed by 10,400 strikes while maximum Call OI is placed at 10,800 followed by 11,000 strikes.

According to Pivot charts, the key support level is placed at 10,543.47, followed by 10,481.73. If the index starts moving upward, key resistance levels to watch out are 10,647.47 and 10,689.73.

The Nifty Bank index closed at 26,273.6. The important Pivot level, which will act as crucial support for the index, is placed at 26,094.8, followed by 25,916.0. On the upside, key resistance levels are placed at 26,389.0, followed by 26,504.4.

Here is the list of top stock trading ideas which can give good returns in the near term:

Abhishek Mondal of Guiness Securities

Buy Kajaria Ceramics with target at Rs 621 and stop loss at Rs 526

Buy Indian Hotels Company with target at Rs 168 and stop loss at Rs 135

Buy Dabur India with target at Rs 408 and stop loss at Rs 364

Prakash Gaba of prakashgaba.com

Buy United Spirits with target at Rs 3430 and stop loss at Rs 3330

Sell Hindustan Unilever with target at Rs 1554 and stop loss at Rs 1574

Rajesh Agarwal of AUM Capital

Buy Mahindra & Mahindra with stop loss at Rs 857 and target at Rs 885

Buy Dabur India with stop loss at Rs 378 and target of Rs 396

Buy BEML with stop loss at Rs 925 and target at Rs 968

Sell Jubilant Foodworks with stop loss at Rs 2635 and target at Rs 2510

Sell Bharti Infratel with stop loss at Rs 312 and target at Rs 296

Ashwani Gujral of ashwanigujral.com

Sell Ajanta Pharma with a stop loss of Rs 1030, target of Rs 990

Sell Voltas with a stop loss of Rs 548, target of Rs 530

Sell LIC Housing Finance with a stop loss of Rs 492, target of Rs 470

Sell M&M Financial Services with a stop loss of Rs 478, target of Rs 455

Buy Dabur India with a stop loss of Rs 380, target of Rs 395

Sudarshan Sukhani of s2analytics.com

Sell ACC with stop loss at Rs 1325 and target at Rs 1280

Sell PVR with stop loss at Rs 1360 and target of Rs1315

Sell Manappuram Finance with stop loss at Rs 110 and target of Rs 104

Buy United Breweries with stop loss at Rs 1175 and target of Rs 1235

Buy Tata Elxsi with stop loss at Rs 1215 and target of Rs1260

Mitessh Thakkar of mitesshthakkar.com

Buy Biocon with a stop loss of Rs 663 and target of Rs 700

Buy Dabur India with a stop loss of Rs 377 and target of Rs 400

Sell Titan Company with a stop loss of Rs 931 and target of Rs 885

Sell ICICI Bank with a stop loss of Rs 295.5 and target of Rs 276

Sell IndusInd Bank with a stop loss of Rs 1892 and target of Rs 1845

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us: 08517810864


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Podcast | Top three stocks to buy which could give 9-16% return in next 3-4 weeks

Broader markets i.e. midcap and smallcap indices continue to underperform the headline Index leading to a divergence confirming the view that markets can witness choppy trading in the coming sessions.

The Nifty50 index bounced back sharply in the last three trading sessions post witnessing a similar correction in the previous week.

Further, following this upmove, the index is approaching 61.8 percent Fibonacci retracement level placed at 10,735. A sustained trade above this Fibonacci resistance can extend the upmove to levels of 10,820-10,930.

However, failure to trade beyond 10,735 i.e. 61.8 percent Fibonacci retracement level can resume the downside corrections dragging it lower to levels of 10,550-10,325.

Moreover, the index has entered in a volatile trading range suggesting a rise in the volatility index in the coming trading sessions which can lead to more choppiness.

Further, broader markets i.e. midcap and smallcap indices continue to underperform the headline Index leading to a divergence confirming the view that markets can witness choppy trading in the coming sessions.

Nilkamal Ltd: Buy| Target: Rs 1,975| Stop loss: Rs 1,600| Return: 16%

On the weekly chart, Nilkamal Ltd. (NILKAMAL) has broken out from a consolidation channel and is approaching the upper end of the Triangle pattern placed at Rs 1,975 (as indicated on chart) indicating bullishness building up in the stock.

A sustained trade above Rs 1,730 with healthy volumes can take the stock to the upper end of the pattern placed at Rs 1,975. Further, on the daily chart, it has taken support at the 61.8% Fibonacci retracement level and turned upwards affirming bullishness.

Moreover, RSI has witnessed a range shift after taking support at the 40-level entering the bull zone affirming bullishness. The stock can be bought in the range of Rs 1,705-1,710 for targets of Rs 1,895-1,975, keeping a stop loss below Rs 1,600.

The New India Assurance Company Ltd: Buy| Target: Rs 790| Stop loss: Rs 690| Return 9%

On the daily chart, the New India Assurance Co. Ltd. (NAICL) has turned upwards after breaking out of a Triangle pattern suggesting bullishness dominant in the stock.

Further, it has broken out on healthy volumes affirming the bullishness. The RSI has turned upwards breaking out of the upper Bollinger Bands suggesting extended bullishness in the coming trading sessions.

The stock may be bought in the range of 720-725 for targets of 760-790, keeping a stop loss below 690.

Axis Bank Ltd: Buy| Target: Rs 600| Stop loss: Rs 519| Return 10%

On the weekly chart, Axis Bank Ltd. (AXISBANK) is on the verge of a breakout from an Ascending Triangle pattern suggesting bullishness building up in the stock.

Further, on the daily chart, it has turned upwards after taking support at the 50% Fibonacci retracement level placed at 520 and has broken out from a consolidation phase affirming bullishness.

The RSI has entered in the bull zone after bearing out of broken out from upper Bollinger Band. The stock may be bought in the range of 544-547 for targets of Rs 585-600, keeping a stop loss below Rs 519.

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us: 08517810864


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Podcast Nifty likely to face resistance around 10,710; 3 stocks which could give 8-18% return

Going ahead into a week with F&O expiry and overhang pressure from rising crude oil price along with weakening rupee, the index is likely to witness volatile trade setup in the coming session.

The Indian equity market remained volatile on the backdrop of weak macro factors coupled with negative momentum on the sectoral front.

The Nifty index breached its crucial support level of 10,500 on Wednesday and decisively slipped below 50-day EMA level placed at 10,460.

However, index took a strong support at this zone to rebound upward near its immediate resistance placed at 10,600 levels last week. The index ended on a flat note with 0.08 percent gain on weekly basis at 10,605 levels on Friday.

The index formed a bullish kind of a candlestick pattern on daily charts, and long lower shadows on the weekly basis. The weekly RSI stood at 55 levels indicating no divergence against price while MACD indicated bullish trend as it traded above Signal Line.

Going ahead into a week with F&O expiry and overhang pressure from rising crude oil price along with weakening rupee, the index is likely to witness volatile trade setup in the coming session.

With index retracing upward in the last two sessions, it might continue on upward momentum for a couple of sessions.

However, a profit-booking regime at higher level can't be ruled out, and thus we advise to trade with caution and strict stoploss. We maintain a rangebound trade on weekly basis with 10,750 levels on upside and 10,510 levels on the downside.

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us: 08517810864


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Rupee, crude movement to be keenly watched; these 3 stocks to bet on for short term

On Thursday, we will witness May series expiry while in evening Government of India will declare quarterly GDP numbers. From Friday, Auto companies will start posting their monthly sales numbers.

Sumit Bilgaiyan

Quarterly earnings, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) will dictate trend on the bourses next week. The movement of rupee against the dollar and crude oil prices will be monitored keenly.

Brent crude hovers near $80 per barrel mark. Spike in oil prices raises India's import bill as the country imports majority of its crude requirements. A weak rupee raises the cost of importing crude oil.

On the earnings front PSU majors will announce their results. On Monday, NTPC and capital goods giant L&T will come out with March quarter earnings. While, M&M, Coal India, Power Grid and OMC giant BPCL will declare their results on Tuesday.

Nifty heavy weightage counter ONGC will come out with numbers on Wednesday. On Thursday, we will witness May series expiry while in evening Government of India will declare quarterly GDP numbers.
From Friday, Auto companies will start posting their monthly sales numbers.

Here is the list of stocks to bet on in short term:-

L&T Infotech

L&T Infotech has posted better-than-expected performance across all fronts during Q4FY2018. Revenue growth was driven by broad base which led to constant currency revenue growth of 4.5 percent QoQ and 18.7 percent YoY while USD revenue increased by 5.3 percent QoQ and 21.6 percent YoY.

Excluding one-time commercial settlement of Rs 61.7 crore, LTI reports EBIT margin to 15.9 percent QoQ, an improvement of 100bps. Net profit during the quarter increased 19.5 percent QoQ to Rs 338 crore.

Strong growth traction in BFSI continued as constant currency revenue grew by 9 percent QoQ due to inorganic revenue which is followed by hi-tech and M&E and manufacturing growth.

Management remains optimistic of remaining in the industry’s top quadrant in terms of revenue growth in FY19 similar to FY18 led by recent deal wins, higher large accounts mining and higher digital revenue mix and growth. We are recommending a Buy at current price.

Escorts

We are quite bullish on Escorts. Its tractor business is likely to witness another year of healthy double digit growth in FY19 due to strong rural sentiments on back of higher farm incomes and projection of normal monsoon for third consecutive year.

We are projecting double digit growth in volume led by new product launches and increased focus on exports. Construction equipment segment is witnessing robust demand traction with 29 percent YoY growth in FY18 which we believe will continue in future.

We expect slight dip in EBITDA margins due to rising raw material cost which will put weigh on margins though we are closely watching for average realization. We have a Buy call on Escorts.

Indiabulls Housing

Indiabulls Housing has reported robust core operating performance. Its AUM grew strongly by 34 percent YoY. Disbursements for the quarter were up 30 percent YoY due to 50 percent+ YoY growth in core home loans which drove 34 percent AUM growth.

Management has cited for strong traction in affordable housing finance. Loan mix and borrowing mix both were steady. Management targets to gradually increase the share of securitization in its loan book from 10 percent currently to 20 percent over the medium-to-long term.

Indiabulls Housing’s transformation from a diversified lender to a focused mortgage player has yielded returns, with healthy RoE and RoA. The ability to manage spreads will be key to watch out. We have a Buy call on Indiabulls Housing Finance.

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us: 08517810864


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Top stock picks by Ashwani Gujral & Mitessh Thakkar which are good bets in near term

Mitessh Thakkar of miteshthacker.com is of the view that one can buy KPIT Technologies with a stop loss of Rs 260 and target of Rs 290 and Power Finance Corporation with a stop loss of Rs 74 and target of Rs 79 while one may sell RBL Bank with a stop loss of Rs 505 and target of Rs 477.

The Nifty rallied 83 points after falling over 100 points in the previous trading session. Bulls pushed the index above crucial 50-DMA and 100-DEMA. Investors who went long in the index tracking the momentum, should ideally keep a stop below 10,410 levels.

The index saw some value buying at lower levels along with short covering which helped Nifty to reclaim 10,500 on closing basis which is a positive sign.

The Nifty50 which opened at 10,464 slipped to an intraday low of 10,419 before bouncing back above 10,500. It hit an intraday high of 10,535 before closing the day at 10,513, up 83 points.

The Nifty Bank index closed up 1.29 percent at 26,016.80 on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 25,759.1, followed by 25,501.4. On the upside, key resistance levels are placed at 26,173.8, followed by 26,330.8.

In an interview to CNBC-TV18, Ashwani Gujral of ashwanigujral.com and Mitessh Thakkar of miteshthacker.com suggests which stocks to buy or sell that can give good value for money:

Ashwani Gujral of ashwanigujral.com

Buy Kotak Mahindra Bank with a stop loss of Rs 1260 and target of Rs 1310

Buy Jubilant Foodworks with a stop loss of Rs 2600 and target of Rs 2750

Buy Tata Consultancy Services with a stop loss of Rs 3550 and target of Rs 3700

Sell TVS Motor Company with a stop loss of Rs 546 and target of Rs 530

Sell India Cements with a stop loss of Rs 128 and target of Rs 116

Mitessh Thakkar of miteshthacker.com

Buy KPIT Technologies with a stop loss of Rs 260 and target of Rs 290

Buy Power Finance Corporation with a stop loss of Rs 74 and target of Rs 79

Sell RBL Bank with a stop loss of Rs 505 and target of Rs 477

Buy Dish TV with a stop loss of Rs 72.5 and target of Rs 78

Sell Dalmia Bharat with a stop loss of Rs 2630 and target of Rs 2440


Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us: 08517810864


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See strong support for Nifty around 10,418 levels

As per the options data, the support level for Nifty has shifted lower in the May expiry compared to last week.

Abhishek Mondal

The Nifty managed to end its losing streak on Tuesday. However, it again closed in the deep red on Wednesday at 10,430.35 levels, which does not augur well for the bulls.

Selling pressure intensified during the latter part of Wednesday’s session and dragged the index below its crucial 10,470 (50-day daily moving average) levels. Overall, the Indian market is witnessing sustained pressure due to rise in crude oil prices, weakness in the rupee versus the dollar and the political drama unfolding in Karnataka which impacted sentiment as investors were predicting an easy win for the Bharatiya Janata Party in next year’s general elections.

The relative strength index (RSI) on the daily chart stands at 37.19 and is showing a downward momentum. The moving average convergence divergence (MACD) is trading above the zero line with a negative crossover, which indicates that the bias could remain bearish for the next few trading sessions.

India VIX ended up 4.08 percent at 14.15. An increase in VIX suggests limited upside and a consolidated down move in the market.

On the daily scale, Nifty has immediate support around 10,418 levels (38.2 percent retracement of the January to March downfall). If it manages to sustain below these levels, then the next levels to watch out for will be 10,328 (200-DMA) and 10,239 (23.6 percent retracement of the January to March downfall). 10,470 (50-DMA) and 10,563 (50 percent retracement of the January to March downfall) will act as an immediate resistance.

On the options front, maximum call open interest of 55.70 lakh contracts is seen at strike price 10,800, followed by 11,000, which now holds 48.50 lakh contracts. Maximum put open interest of 49.05 lakh contracts is seen at strike price 10,500, followed by 10,400, which now holds 38.67 lakh contracts, and 10,300, which now holds 34.40 lakh contracts.

As per the options data, the support level for Nifty has shifted lower in the May expiry compared to last week and the immediate support is seen around 10,400 and 10,300 levels, whereas 10,800 will act as stiff resistance.

Here is a list of top three stocks that could deliver 3-7% return in the short-term:

United Breweries Ltd: Buy | Close: Rs 1,177.65 | Target: Rs 1,265 | Stop loss: Rs 1,126 | Return: 7.42%

On daily scales, UBL has taken support around its 20-DEMA and bounced back with higher volumes, which suggests that the stock has made a temporary bottom at around Rs 1,080 levels.

The Daily Relative strength index (RSI) and MACD are both in selling mode whereas (+) DI trading above (-) DI. Based on the above observations, positional traders can buy the stock at around current levels and add on dips around Rs 1,160-1,065 with a stop loss below Rs 1,126 (closing) for the target of Rs 1,265.

Divi's Laboratories Ltd: Sell | Close: 1093.65 | Target: Rs 1040 | Stop loss: Rs 1138 | Return: 5.45%

The stock has given a close below its 50 percent retracement level of March to May up move around Rs 1,124 on Tuesday with higher volumes, which indicates that the bias could remain bearish for the next few trading sessions.

The Daily Relative strength index (RSI) showing downward move and MACD continuously trading below the signal line suggests limited upside.

Based on the above observations, the stock is likely to move down in the near-term. A trader can sell the stock after some technical bounce back around Rs 1,100-1,110 with a stop loss above Rs 1,138 (closing basis) for a target of Rs 1,040

Tata Communications Ltd: Sell | Close: 610.75 | Target: Rs 598 | Stop loss: Rs 627 | Return: 3.40%

In the daily scale, the stock has taken resistance around its 20-DEMA and falling down with moderate volumes. The Daily Relative strength index (RSI) and MACD both are in selling mode whereas (-) DI just cross above (+) DI.

Based on the above observations the stock is likely to move down in the near term. Traders can sell the stock in a rally around Rs. 617-620 with a stop loss above Rs 627 (closing basis) for the target of Rs 596.

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us: 08517810864


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Accumulate Manpasand Beverages, target Rs 500: Shitij Gandhi

"Traders can accumulate the stock in a range of Rs 440-450 levels for the target of Rs 500 and a stop loss below Rs 405," says Shitij Gandhi of SMC Global Securities.

 Shitij Gandhi

 From the past three months, Manpasand Beverages has been trading in a range of Rs 355-425 along with consistent buying at lower levels. However, from the past two weeks, the momentum has been shifted towards the north.

 The stock has regained strength above its long-term moving averages on a daily interval. Additionally, we have also witnessed a fresh breakout in prices this week above the Cup and Handle pattern formed on the daily charts which support for the next up move.

 Traders can accumulate the stock in a range of Rs 440-450 levels for the target of Rs 500 and a stop loss below Rs 405.

 Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us:- 08517810864
https://www.capitalways.com/



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Buy or sell: Top stock trading ideas by Vinay Rajani, Prakash Gaba & Rajesh Agarwal

Rajesh Agarwal of AUM Capital recommends buying Bharat Petroleum Corporation with stop loss at Rs 380 and target at Rs 410, a buy in AU Small Finance Bank with stop loss at Rs 690 and target at Rs 723 and a buy also in Infosys with stop loss at Rs 1162 and target at Rs 1206.

The index slipped for a fifth consecutive session in a row. It broke below its crucial support placed at 50-DEMA, and 100-DMA placed at 10,557, and 10,538 respectively.

Bears have tightened their hold on D-Street which is evident from the fact that the widely tracked Supertrend indicator gave a sell signal on the charts today. MACD gave a sell signal on daily charts last week.

The Nifty which opened at 10,616 rose to an intraday high of 10,621 but then bulls took control and pushed the index below 10600 levels. The index slipped to an intraday low of 10,505 before closing 79 points lower at 10,516.

India VIX moved up by 1.84 percent at 14.41 levels. On the options front, maximum Put OI is placed at 10,500 followed by 10,600 strikes while maximum Call OI is placed at 11,000 followed by 10,800 strikes.

According to Pivot charts, the key support level is placed at 10,474.43, followed by 10,432.17. If the index starts moving upwards, key resistance levels to watch out are 10,590.33 and 10,663.97.

The Nifty Bank index closed at 25,750.8 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 25,601.8, followed by 25,452.8. On the upside, key resistance levels are placed at 25,983.3, followed by 26,215.8.

Vinay Rajani of HDFC Securities

Sell Wipro with target at Rs 245 and stop loss at Rs 280

Sell Apollo Hospitals with target at Rs 890 and stop loss at Rs 1,050

Sell Bharti Airtel with target at Rs335 and stop loss at Rs 380

Prakash Gaba of prakashgaba.com

Sell BEML with target at Rs 900 and stop loss at Rs 980

Sell Delta Corp with target of Rs 220 and stop loss at Rs 240

Rajesh Agarwal of AUM Capital

Buy Bharat Petroleum Corporation with stop loss at Rs 380 and target at Rs 410

Buy AU Small Finance Bank with stop loss at Rs 690 and target at Rs 723

Buy Infosys with stop loss at Rs 1162 and target at Rs 1206

Buy West Coast Paper Mills with stop loss at Rs 280 and target at Rs 296

Sell KPIT Technologies with stop loss at Rs 259 and target at Rs 245

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us:08517810864


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Nifty entering consolidation phase; Bank Nifty should outperform in near-term

"Nifty is heading towards 10,530 zones which might work as immediate demand zones. Range Expansion indicators is trading 96 levels thus suggesting that Nifty may enter into consolidation phase," says Rajesh Agarwal of AUM Capital.

Rajesh Agarwal

Benchmark indices declined for a fourth straight session on Friday, amid developments in the US-China trade negotiations and firm crude prices. The Sensex ended at 34,848, down 301 points. The broader Nifty index settled at 10,605, down 78 points. Among sectoral indices, the Nifty Bank index fell as much as 0.6 percent, extending its drop into the third session.

ICICI Bank and HDFC Bank declined 2.9 percent and 0.8 percent, respectively. The Nifty PSU Bank index also shed 1.6 percent, its fourth consecutive session of fall, on continued concerns about disappointing quarterly results due to a jump in bad loan provisions.

In the global markets, Asian stocks were steady on Friday, while the dollar is perched near its five month peak after the benchmark US Treasury yield hit its highest in seven years.

Technical outlook

Nifty

The Nifty opened flat to negative and continued its down move, closing lower. It has closed below its short-term 20-day exponential moving average (EMA). It is heading towards 10,530 zones which might work as immediate demand zones. On the weekly chart, the relative strength index (RSI) (14) has given a negative crossover around 65 zones which is a bearish sign. Range expansion indicator is trading at 96 levels, thus suggesting that Nifty may enter into a consolidation phase.

Bank Nifty

The Nifty Bank has formed a kind of bullish hammer pattern around its short-term 20 EMA, which stands around the 25,800 zone: its immediate support zone. Decisive trade below this may drag the index lower till 25,450. On the weekly chart, the moving average convergence divergence (MACD) is on the verge of a negative crossover and RSI (14) is in bearish mode. According to Relative Comparative chart, the index should outperform benchmarks in the near-term.

Below are top five stocks that can return up to 5% in the near-term:

Karnataka Bank | Rating: Buy | Target: Rs 125, stop loss: Rs 117, Return: 4%

Jubilant Foodworks | Rating: Buy | Target: Rs 2540, stop loss: Rs 2460, Return: 1%

Tech Mahindra | Rating: Buy | Target: Rs 704, stop loss: Rs 680, Return: 1%

Shriram Transport Finance | Rating: Sell | Target: Rs 1375, stop loss: Rs 1435, Return 2%

PTC India | Rating: Sell | Target: Rs 77, stop loss: Rs 84, Return: 5%

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us:-08517810864




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Tough times ahead? Stay away from midcaps; Nifty could retest 10,200 levels

We feel that the same sentiment will translate onto the heavyweights within the index and that would bring down the Nifty50 as well in coming weeks, says Pushkaraj Sham Kanitkar, AVP - Technical Research at GEPL Capital.

Both MACD and the RSI has been showing divergence indicating a severe fatigue at higher levels. Chances are that this would lead to a deeper correction all the way back to the 10,200-9,950 mark with the intermediate supports placed at 10,500, Pushkaraj Sham Kanitkar, AVP - Technical Research at GEPL Capital, said in an exclusive interview with Moneycontrol’s Kshitij Anand.

Q: The Nifty50 slipped nearly 2 percent for the week ended May 18. It broke below crucial support levels on charts. Do you think we are headed lower in May series?

A: Yes, certainly. The Nifty50 is largely holding fort given the strength in some of the heavyweights like HUL, ITC, HDFC Bank, HDFC Ltd etc.

The broader markets, as well as the low weights in Nifty50, are already in the docks. We feel that the same sentiment will translate onto the heavyweights within the index and that would bring down the Nifty50 as well in coming weeks.

Q: MACD gave a sell signal on the daily charts on Thursday for the first time since March. What are its implications?

A: Not just the MACD, the RSI too, has been showing divergence indicating a severe fatigue at higher levels. Chances are that this would lead to a deeper correction all the way back to the 10,200-9,950 mark with the intermediate supports placed at 10,500.

Q: Plenty of stocks hit fresh 52-week lows this week instead of 52-week high. Do you think these are stocks which are carrying the momentum and investors should ideally book profits or stay away from them?

A: We would still advise to HOLD onto the winners (read 52-week highs) and the flip side it’s a strict no for the losers as well.

Q: What is your call on smallcap and midcap stocks? Should investors stay away or just book profits on rallies?

A: The midcaps have remained underperformers on both sides of the current move. They corrected to a greater extent between Jan-Mar 2018 and moved higher with less force in the current up move.

Midcaps have cracked more than 6 percent in the last 3 weeks, compared to an up move of around 0.5 percent in the benchmark Nifty. The underperformance of MIDCAPS is here to stay and hence a strict no for midcaps for now.

Q: What is your call on crude for the coming week?

A: It would tend to remain bullish till the point the Brent doesn’t fall below the USD 72 mark, which just touched the USD80 mark in Thursday’s trading session.

The spread between Brent & Sweet Crude Oil is currently placed at USD 8, which is on the higher side of the band which indicates that the rally in Crude Oil is here to sustain for the time being.

Q: Top 3-5 positional calls which could give handsome returns to investors in next 1 month?

A: Here is a list of top three stocks for the coming week:

TCS: Buy| Target: Rs 3,900| Stop loss: Rs 3250| Return potential 11%

TCS witnessed a breakout in the calendar year 2018 but started consolidating between 2,750-3,250 levels in the month of May.

There is the absorption of heavy volumes during this period (including the stake sale by the promoters). TCS formed and witnessed a breakout from the Cup & Handle pattern above Rs 3,300.

A breakout from the pattern projects a pattern completion targets around Rs 3,850-3,900 with just one condition that it should trade above Rs 3,250.

Kotak Mahindra Bank: Buy| Target: Rs 1360| Return potential 5%

A breakout from a 6-month consolidation occurred in the second week of April as prices climbed above the all-time high placed at Rs 1,110. A breakout from the consolidation spaced between levels of Rs 950-1,110 projects to extrapolated targets around the Rs 1,360 mark.

The consolidation was accompanied by a good rise in “delivered quantity”, which is an indication of genuine long-term buying in the scrip.

IndusInd Bank: Buy| Target: Rs 2,100| Return potential 8%

The stock is in a rational uptrend that started with a move above the 200-DMA placed at Rs 1,750. This move gathered further strength when the stock moved above the parallel channel placed at Rs 1,800 levels. This up move projects targets placed around Rs 2,100 levels.

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us: 08517810864



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