Earn up to 15% by buying these 5 stocks today

A decisive fall below 10,550 may induce a correction towards 10,330 levels. On the other hand, a short-term pullback may be seen in the market if the Nifty moves decisively above 10,620 levels.

The Nifty opened gap down following weak global cues and slipped to an intraday low of 10,558 on Wednesday. At the lower end, the index found support at the 50-exponential moving average (EMA), which is currently pegged at 10,562.

On the way up, the Nifty found resistance at its 13-EMA and closed below it. A lower peak on the daily chart indicates reduced optimism among traders.

However, 10,550 is expected to act as immediate support for the Nifty. Only a conclusive fall below the 10,550 may trigger a bigger correction in the market.

Relative strength index (14) has entered in a bearish crossover, which suggests near-term weakness in the index momentum. Trend following indicator such as moving average divergence convergence (MACD) is in a bearish crossover.

Till the time there is no significant breakdown, the index will hover in a range. A decisive fall below 10,550 may induce a correction towards 10,330 levels. On the other hand, a short-term pullback may be seen in the market if the Nifty moves decisively above 10,620 levels.

Here is a list of 5 stocks that could return 10-15 percent in the short term:

ABB Ltd: Buy| Target: Rs 1,370| Stop Loss: Rs 1,182|Return 10%

On the weekly chart, an engulfing pattern is visible which suggests waning bearishness among the traders. On the daily chart, the price has moved above 13-EMA in its recent price action which shows the growing optimism in the stock.

In addition, positive divergence is visible in the momentum indicator RSI (14), on the daily chart. Traders can accumulate the stock in the range of Rs 1,230-1,240 for the target of Rs 1,370 and a stop loss can be placed below Rs 1,182.

Reliance Capital Ltd: Buy| Target: Rs 480| Stop Loss: Rs 399| Return 12%

The stock has formed a Bullish Harami pattern on the weekly chart which suggests waning bearishness. On the daily chart, the price has moved above its 50-exponential moving average (EMA) which suggests a shift in prevailing trend from negative to positive.

In addition, positive divergence is visible in the momentum indicator RSI (14) on the weekly chart. Traders can accumulate the stock in the range of Rs 420-426 for the target of Rs 480 and a stop loss below Rs 399 can be kept for all long positions.

DCB Ltd: Buy| Target: Rs 207| Stop Loss: Rs 174| Return 12%

The stock has formed a Bullish Harami pattern on the weekly chart which suggests a possibility of bullish reversal over the short-term. Moreover, the price has found support at the 50-exponential moving average (EMA) on the weekly chart.

On the other hand, the stock price has been sustaining above its 200-days moving average (DMA). The weekly RSI (14) is in a bullish crossover with current reading at 53.71. Traders can accumulate the stock in the range of Rs 182-186 for the target of Rs 207 and a stop loss below Rs 174.

Tata Coffee Ltd: Buy| Target: Rs 132| Stop Loss: Rs 108| Return 15%

The stock price has formed a Hammer candlestick pattern on the weekly chart which suggests a possibility of a bullish reversal. An ugly double bottom on the daily chart is expected to act as support for the short term.

Apart from that, a positive divergence is visible on the weekly RSI (14). Traders can accumulate the stock in the range of Rs 112-116 for the target of Rs 132 and a stop loss below Rs 108.

Rallis India Ltd: Buy| Target: Rs 240| Stop Loss: Rs 197| Return 15%

The stock price has formed a Hammer candlestick pattern on the weekly chart which suggests a possibility of a bullish reversal. An ugly double bottom around 200 on the daily chart is expected to act as support for the short term.

Apart from that, a positive divergence is visible on the weekly RSI (14). Traders can accumulate the stock in the range of Rs 208-211 for the target of Rs 240 and a stop loss below Rs 197.

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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.