Podcast | Stock picks of the day: Voltas, Hindalco, Tata Chemicals among top ideas to go short

Bears are likely to keep control over the markets and the current trend is likely to remain under pressure with Nifty moving towards 11,000-10,900 levels.

Indian markets again started this week on a negative note with the Nifty slipping to a three-month low on the back of weak corporate earnings and continuous selling by foreign portfolio investors (FPIs).

The sharp sell-off was witnessed in Auto, Metal, Banking and Financial stocks which dragged the Nifty below the 11,100 mark.

As per the derivative data, call writers are now actively adding open interest (OI) in 11,300 strikes which should act as a major hurdle for the Nifty in the August series.

On the technical front as well, the Nifty is constantly trading well below its long-term moving averages with continuous short build up into the prices.

In the coming sessions, we believe that bears are likely to keep control over the markets and the current trend is likely to remain under pressure with the Nifty moving towards 11,000-10,900 levels.

However, any technical bounce on the higher side should take resistance at 11,200-11,250 levels.

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

Voltas: Sell| Target: Rs 540| Stop Loss: Rs 580| Downside 4 percent

In the recent sessions, the stock has given a fresh breakdown below its long-term moving averages and breached the crucial support level placed at Rs 585.

Additionally, on a shorter time frame, the stock managed to give a break below the neckline of the ‘Head and Shoulder’ pattern which points towards more downside in the prices moving forward.

Traders can sell the stock below Rs 565 levels for the downside target of Rs 540 levels, and a stop loss above Rs 580.

Tata Chemicals: Sell| Target: Rs 550| Stop Loss: Rs 590| Downside 4 percent

The stock has been trading consistently lower with the formation of lower top and lower bottom on the daily interval.

This week the stock gave a breakdown below the key support levels of Rs 585 along with heavy short build up into the prices.

The secondary oscillators on the daily as well as weekly interval are also pointing towards more downside into the prices.

Traders can sell the stock below Rs 575 levels for the downside target of Rs 550 levels, and a stop loss above Rs 590.

Hindalco Industries: Sell| Target: Rs 178| Stop Loss: Rs 197| Downside 6 percent

Since the beginning of the year, the stock has been continuously trading well below its long-term moving averages with prices holding within a downward sloping channel.

At the current juncture, the stock has given a fresh breakdown below the rising wedge pattern and also slipped below the 200-days exponential moving average on the weekly interval as well which is again a bearish signal for the prices moving forward.

Traders can sell the stock below Rs 190 levels for the downside target of Rs 178 levels, and a stop loss above Rs 197.

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