Podcast | Stock picks of the day: Time to book some profits in small & midcaps

Get real time updates directly on you device, subscribe now.

Podcast | Stock picks of the day: Time to book some profits in small & midcaps

Hadrien Mendonca

The Nifty50 enjoyed a strong up move in the past three weeks and interestingly, support levels are also shifting higher which is a

positive development.

However, the February 2019 swing high at 11,118 level is acting as a very crucial resistance zone for the Nifty. A break above this stiff resistance would lead to a decent rally in the coming weeks.

On the other hand, Bank Nifty has shown immense strength which has already broken out from a ‘Cup and Handle’ pattern on the daily chart.

In addition, the index has also broken past the 27,785 January 9 swing highs and also closed above the same. In my opinion, the next phase of the rally is likely to be led by the banking space. The important support on the downside is seen around the 27,500 zone.

The broader indices have participated in the past two weeks and have outperformed significantly. However, going forward, some profit

booking is likely in the near term.

It is advisable to take some profit off the table at the current juncture in the mid and smallcaps and wait for a decent throwback to renter at lower levels.

Following is a list of stocks that could deliver up to 6-9% returns in the next 1 month:

Bajaj Finserv: Buy| Target: Rs 7,194| Stop Loss: Rs 6,350| Upside 9%

The stock witnessed strong gains for the third consecutive week and has also broken out from the Symmetrical Triangle pattern on the weekly chart.

We expect the current momentum to get extended further towards a potential target of Rs 7194 levels in the medium term.

Allahabad Bank: Buy| Target: Rs 61.5| Stop Loss: Rs 53.25| Upside 10%

The stock has shown immense strength in the recent past and has also broken out from an inverse head and shoulder pattern on the weekly chart.

It has also surpassed its 100-days weekly exponential moving average. Projections indicate that the stock has the potential to rally towards Rs 61.5 in the medium term.

KNR Construction: Buy| Target: Rs 250| Stop Loss: Rs 226| Upside 7%

Our weekly chart analysis suggests that the stock has broken out from an inverse Head and shoulder pattern on the weekly chart indicating that every decline from here on should be an opportunity to accumulate. Projections indicate that the stock has the potential to rally by another 7 percent in the medium-term.

(The author is a Senior Technical Analyst, IIFL)

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-03-09 21:53:44

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

Get real time updates directly on you device, subscribe now.

Comments
Loading...

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More