Avenue Supermarts on the verge of a breakout, may rally 13% in 3-4 weeks

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A move beyond 11300 can extend the short-covering rally taking it higher to levels of 11350-11370. A sustained trade above this DMA support may trigger short covering.





Nifty50 continues to be in the clutches of the bears forming lower lows for eight consecutive trading days after failing to cross its previous session high.

The Nifty is approaching its 200-DMA placed at 11,133. A breakdown from this support can extend the corrective move towards levels of 11,100.


However, a sustained trade above this DMA support may trigger short-covering, taking it to the levels of 11,300.

A move beyond 11,300 can extend the short-covering rally taking it higher to levels of 11,350-11,370. Moreover, RSI is sitting at extreme oversold zone suggesting a possible short-covering rally in the coming sessions.

Here is a list of top three stocks which could give 6-13 percent return in the next 3-4 weeks:

HCL Technologies Ltd: Buy | LTP: Rs 1,015 | Target: Rs 1,070-1,120 | Stop Loss: Rs 960 | Upside: 6-10 percent

On the daily chart, HCL Tech has taken support at its previous cluster of troughs placed between Rs 1,000-1,005 and turned upwards suggesting strong demand zone around Rs 1,000.

Moreover, it is on the verge of a breakout from a downtrend line resistance placed at Rs 1,025. A sustained trade beyond the trendline can resume the bull trend.

RSI has formed a positive divergence with respect to the price which confirms that the downtrend is losing steam.

The stock may be bought in the range of Rs 1,000-1,020 for targets of Rs 1,070-1,120, and keep a stop loss below Rs 960.

Thermax Limited: Buy | LTP: Rs 1,136 | Target: Rs 1,240-1,270 | Stop Loss: Rs 1,075 | Upside 9-12 percent

On the daily chart, Thermax Limited is on the verge of a breakout from the neckline of a Cup and Handle pattern placed at Rs 1,150. A successful breakout backed by healthy volumes will take the stock higher towards levels of Rs 1,240-1,270.

Further, on the weekly chart, it is on the verge of a breakout from a Triangle pattern neckline which is also placed at Rs 1,150. Breakout from this Triangle will resume the upward journey.

The RSI has also turned higher after taking support at the lower end of the bull zone i.e. 40 favoring the bulls. The stock may be bought in the range of Rs 1,130-1,140 for targets of Rs 1,240-1,270, and keep a stop loss below Rs 1,075.

Avenue Supermarts Limited: Buy | LTP: Rs 1,449 | Target: Rs 1560-1640 | Stop Loss: Rs 1,375 | Upside 8-13 percent

On the daily chart, Avenue Supermarts Limited is on the verge of a breakout from a trendline resistance placed at Rs 1,475, a sustained trade beyond this trendline will trigger a breakout on the upside taking it higher to levels of Rs 1,560-1,640.

Moreover, the stock is trading above its major moving averages indicating that the bulls are back in control and it is poised for an upside breakout.

Further, RSI has turned upwards from the 50-zone suggesting bullishness. The stock may be bought in the range of Rs 1,440-1,450 for targets of Rs 1,560-1,640, and keep a stop loss below Rs 1,375.



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