Nifty could touch 12K in a year: Top 10 technical picks that you can bet on

The market is likely to stay in a range of about 1000 points, i.e. 10,000 will act as crucial support till next Diwali and on the upside, we could well surpass 11,760 and hit a fresh record high, experts say.

The next 12 months are unlikely to bring cheer to investors, the market will, in fact, be volatile as we approach the general elections in 2019, suggest experts.

The market is likely to stay in a range of about 1,000 points, i.e. 10,000 will act as crucial support till next Diwali and on the upside, we could well surpass 11,760 and hit a fresh record high, they said.

There are multiple headwinds in terms of local as well as global factors. Investors will be better off investing in companies which are looking attractive based on technical parameters. Hence, any movement caused by the elections or macro factors is unlikely to cause any major disruption.

“The next year is going to be a crucial one for markets due to scheduled general elections and its outcome would set the tone,”

“Having said that, we expect the prevailing uptrend to continue and suggest using intermediate corrective phase to accumulate quality stocks,” he said.

Indian stocks have been in a corrective phase since Nifty hit record high of 11,760 in early September this year. So far, it has corrected by about 10 percent. On the lower end, 10,000 will act as crucial support for the index.

However, a break below this level could trigger fresh leg of sell-off which could take the index towards 9,850 which is 38.20% Fibonacci Retracement level of the previous rise from swing low of 6825 to 11760.

“The Nifty continues to remain positive on a long-term basis as major breakouts on higher degree charts are still intact. We expect Nifty to remain in 9,700-11,000 range for few more months with mixed bias (till general election 2019 over),” Rajesh Palviya, Head -Technical & Derivatives Analyst, Axis Securities told Moneycontrol.

“Once Nifty manages to cross and sustain above 11,000 we may see comfort in the market and it can scale up towards 11,400-11,700 level till next Diwali 2019,” he said.

Rupak De of Bonanza Portfolio says that bulls may return to the game on a decisive move above 10,700. Sustained trades above 10,700 may induce a strong rally in the market which may take Nifty towards 12,000-12,250 by next Diwali.

Here is a list of top 10 stocks that can give up to 6-60% return in the next one year based on technical factors:

Aurobindo Pharma: LTP: Rs 798| Buy range: 760-780| Stop Loss: Rs 720| Target: Rs 900| Return 12%

After a long bull run from Rs 50 to 830 levels, Aurobindo Pharma has been witnessing a consolidation within Rs 530-820 for the last three years.

It is currently trading close to the upper band of that range. Though we are seeing a mixed trend in the pharma space but its chart formation and signals from the confirmation indicators are pointing toward breakout in the near future. Traders shouldn’t miss this opportunity and accumulate in the given range.

PVR: LTP: Rs 1,389| Target: Rs 1,580| Stop Loss: Rs 1,310| Return 13%

PVR has been maintaining steady uptrend since 2011 and generating an exceptional return for the investors. After making a record high at Rs 1563.05, it has been consolidating around its support zone of multiple moving averages for the last six months and trading on the verge of a breakout from the same in near future. Traders are advised to initiate fresh long positions in the given range.

Dabur India: LTP: Rs 375| Stop Loss: Rs 355| Target: Rs 400| Return 6%

Dabur India has been witnessing correction for the last two months or so, after making a record high in August 2018. It has now reached close to its support zone around 360 and looks oversold too.

All indications are in favor of rebound in near future. We suggest traders to use this phase and gradually accumulate in the given range

Hindalco Industries: LTP: Rs 229| Stop Loss: Rs 230| Target: Rs 258| Return 13%

Hindalco Industries has rebound swiftly of late and crossed the hurdle of multiple moving averages on the daily chart. Its chart formation is clearly pointing towards strong surge ahead. We advise creating fresh longs within the range.

Tata Global Beverage: LTP: Rs 214| Buy Range: 210-215| Target: Rs 240| Stop Loss: Rs 200| Return 12%

After a strong rally from 113 to 320 levels, Tata Global has witnessed a correction of around 33 percent since the initial of 2018.

On the daily chart, current price structure and price momentum suggesting the halt in price fall and the stock may witness a rebound from the same in near term. We suggest traders to accumulate fresh long as per the levels.

Analyst: Rupak De, Research Analyst at Bonanza Portfolio Ltd

Tata Motors DVR: BUY| LTP: Rs.100.60 | Target: Rs 164| Stop Loss Rs 77| Return 64%

The stock has corrected very badly since September 2016 which led to a price correction of more than 75 percent (from 378 to 90). The stock is highly oversold for a long time, recently the weekly RSI has come out of its oversold zone.

In addition, an Anti Shark harmonic pattern is formed on the monthly chart which is likely to propel the stock for a steep rally over the medium-term. Traders can accumulate the stock in the range of Rs 100–110 for the target of 164 and a stop loss below Rs 77.

RBL Bank: Buy| CMP: Rs 546 | Target Rs 630 |Stop Loss Rs 489 | Return 15%

On the weekly chart, a Hammer with long lower wick suggests strong demand around the recent lowest price. Price has moved above 38.20% Fibonacci Retracement level of the previous fall from 652 to 438.

In addition, the price has moved above its 50 EMA on the weekly chart. Moreover, weekly RSI is in positive divergence. Traders can accumulate the stock in the range of 530-540 for the target of 630 and a stop loss above 489.

Bata India: Buy| CMP: Rs. 1018| Target Rs 1,162 | Stop Loss Rs 929 | Return 14%

In the recent correction, the stock is seen to have found support at the 200-EMA (exponential moving average) and moved up. In addition, the stock has given a falling trendline breakout which signifies a trend reversal.

On the daily frame, the stock has moved above 50% retracement of the fall from swing high of 1115 to swing low of 833. The above technical set up is likely to propel a rally in the stock in the days to come. Traders can accumulate the stock in the range of Rs 1000-1020 for the target of Rs 1162 with a stop loss above Rs 929.

Marico : Buy| CMP: Rs. 338 | Target: Rs 400| Stop Loss Rs.304 | Return 18%

The stock price has moved up above the consolidation pattern on the weekly chart. In addition, the monthly chart is having a bullish hammer which suggests buying around the recent low.

Moreover, the price has moved above its 38.20% Fibonacci Retracement level of the previous fall 387 to 282. Traders can accumulate the stock in the range of Rs 330-340 for the target of Rs 400 and a stop loss of Rs 304.

Havells India LTD: Buy| CMP: Rs. 651.90| Target Rs 745|Stop Loss Rs.594 | Return 14%

In the recent price action, the stock has moved above the consolidation pattern on the weekly chart which suggests growing optimism over the medium term.

Multiple long-legged doji are visible on the weekly chart after which is followed by a rise in price. In addition, bullish crossover in the weekly RSI is visible which suggests momentum is likely to remain positive in the days to come. Traders can accumulate the stock in the range of 640-655 for the target of 745 with a stop loss at 594.

Disclaimer:- The views and investment tips expressed by investment experts are their own. Ripples Advisory advises users to check with certified experts before taking any investment decisions.

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