See Nifty in 10,500-10,700 band till May expiry; these 3 buy ideas could offer 11-13% returns

Since the last week, writing in both 10,500 put and 10,700 calls have been observed which indicates sideways movement in expiry week.

The markets staged a smart recovery from lower levels. The Nifty regained the crucial level of 10,550, led by short covering. However, all writers are once again seen active in 10,700 strikes, which will restrict the market’s move further.

However, in the last two trading sessions, call writers were more active compared to put writers which signal limited upside in the market ahead of expiry.

We expect the Nifty to trade in a 10,500-10,700 band for the next two trading session. From a technical point of view, 10,580 and 10,550 spot levels will act as major support for the index, while resistance is placed around 10,650-10,700 levels.

Here is a list of top three stocks that could offer 11-13 percent returns in the short term:

PNC Infratech Limited: Buy| Target: Rs 202| Stop loss: Rs 165| Return 13%

The stock has been consolidating in the range of Rs 150-180 from the past three months as prices are oscillating alongside its 200-days exponential moving average on the daily charts.

The consolidation has formed a symmetrical triangle pattern on the daily charts and the breakout above which can further move the stock towards the north.

In Tuesday’s session, hefty volumes had been observed along with the rise in price which suggests that bulls are taking control over the stock. Traders can buy the stock above Rs 178 levels for the target of Rs 202 and a stop loss below Rs 165.

Sonata Software Limited: Buy| Target: Rs 412| Stop loss: Rs 345| Return 11%

The stock has been maintaining its uptrend and trading in a rising channel since the beginning of the year. However, from the past five weeks, prices were seen fluctuating in falling channel as the stock was making lower highs and lower lows pattern on daily charts.

This week, the channel breakout has been observed above the falling trend line along with positive divergence on the RSI which is a bullish signal for the stock.

Traders can accumulate the stock in a range of Rs 370-375 for the upside target of Rs 412 with a stop loss below Rs 345.

Astec LifeSciences Limited: Buy| Target: Rs 800| Stop loss: Rs 660| Return 12%

Last month the stock has given a consolidation breakout above Rs 650 levels and tested Rs 770 levels in the short span of time. However, prices have now again gone into a consolidating zone and formed a rectangle pattern on weekly charts.

The stock broke out of the pattern with considerably larger volumes which signals fresh up move in the coming sessions. Therefore, one can accumulate the stock in the range of Rs 710-725 levels for the upside target of Rs 800 levels and a stop loss below 660.

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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.