Strong hurdle for Nifty around 10,660; top 5 stocks which can give up to 15% return

"Nifty may find support around 10600 marks. If it fails to hold this mark, the index may witness a correction till 10,550 zone. Strong hurdle seen around 10,660 zones. Decisive trade above these levels would add momentum on upside," says Rajesh Agarwal of AUM Capital.

Nifty snap 5-weeks winning streak on profit booking and closed lower at 10618.25 down 0.73 percent on weekly basis. It has formed 'Shooting Star' candlestick pattern around 61.8 percent Retracement levels on weekly scale indicating a caution at higher levels.

Nifty may find support around 10600 marks. If it fails to hold this mark, the index may witness a correction till 10,550 zone i.e. 20-EMA. RSI (14) has given negative cross down around overbought zone indicating Index to continue its downfall in near term. Strong hurdle seen around 10,660 zones. Decisive trade above these levels would add momentum on upside.

Nifty Bank outperformed benchmarks and closed higher by 0.97 percent on weekly basis. On daily chart, post breakout from a bullish reversal pattern i.e. Inverse Head & Shoulder, Index is consolidating above its major moving average of 100 SMA which stands around 25,360 levels. It is facing hurdle around 50 percent Retracement levels i.e. 25,630 zone. Sustenance trade above these levels would add further momentum on upside.

Furthermore, MACD is trading around Zero and on verge of positive crossover which is bullish setup. Nifty Bank may continue its rally till 26,450 zones which might work as stiff hurdle zone.

Below are the top 5 stocks which can give up to 15% return:

ICICI Bank | Rating: Accumulate | Target: Rs 310, stop loss: Rs 265, Return: 10%

ICICI Bank: (Closing: Rs 282.85) on weekly time frame is consolidating around upward sloping trendline. Multiple bullish reversal candlestick patterns around support zone is indicating accumulation of stock at current level. Furthermore, Money Flow Index is trading around oversold zone. Accumulate ICICI Bank around Rs 280-282 with stop loss at Rs 265 for target of Rs 310.

Bharat Electronics | Rating: Buy | Target: Rs 145, stop loss: Rs 120, Return: 12%

Bharat Electronics Limited (Closing: Rs 129.60) is trading around 61.8 percent retracement level (Drawn from low of 93 to high of 193) on weekly time frame. It has formed 'Hammer' candlestick pattern which is a bullish reversal pattern. Hammers signala capitulation by sellers to form a bottom accompanied by a price rise, to indicate a potential reversal in price direction.

Furthermore, Indicators like RSI (14) & MACD are trading around oversold zone with positive divergence. Buy BEL around Rs 128-129 with stop loss at Rs 120 on closing basis for target at Rs 145.

Bharat Petroleum Corporation | Rating: Accumulate | Target: Rs 415, stop loss: Rs 360, Return: 9%

BPCL (Closing: Rs 380.20) is consolidating between 50 & 61.8 percent Retracement levels on weekly time frame. On shorter time frame, BPCL has formed 'Tweezer Bottom' candlestick pattern with positive divergence in Oscillators suggesting a pullback from lower levels cannot be ruled out.

Accumulate BPCL around Rs 378-380 with stop loss at Rs 360 on closing basis for target at Rs 415.

Federal Bank | Rating: Buy | Target: Rs 115, stop loss: Rs 93, Return: 15%

Federal Bank: (Closing: Rs 100.05) post breakout from a range, is consolidating within a narrow range of Rs 95-102 zone. On daily chart, Federal Bank has closed above its major moving average of 100 SMA i.e. Rs 99.60 zone which is indicating prices to move higher till Rs 107 and Rs 117 zone. Furthermore, MACD has given positive crossover on weekly scale which is a bullish setup. Buy Federal Bank around Rs 99-100 with stop loss at Rs 93 on closing basis for target of Rs 115.

Jindal Steel & Power | Rating: Accumulate | Target: Rs 260, stop loss: Rs 228, Return: 8%

Jindal Steel & Power (Closing: Rs 240.65) on daily time frame is trading around its 'Internal Trendline' and its major moving averages. Till it sustains above this trendline, Jindal Steel should move higher from current level.

Furthermore, on hourly chart, Stock is trading around lower band of Descending Channel. Accumulate Jindal Steel around Rs 238-240 zone with stop loss of Rs 228 on closing basis for target of Rs 260.

Capital Ways Investment Adviser

605, Industry House , AB road Indore (MP) 452001

info@capitalways.com

https://www.capitalways.com/