Hot Stocks | Delta Corp, SBI, Hindalco Industries are 3 top trading ideas for short term
Hot Stocks: Apart from the second half of March 12th, the market had a simplex move all over the previous week. After the gap-up, there was no major action in indices as they kept moving within a small range, maintaining their positive posture.
While the real action was in individual themes that were missing on March 12th. With the March 12th move, 15,200-15,400 has become a sturdy wall for the Nifty. And it would be a daunting task to surpass this in the absence of any major trigger on the global as well as domestic front.
However, the key support is placed at 14,925-14,850. A sustainable violation of these supports would lead to an extended correction and in that case, we may see the Nifty sliding to 14,700 or may even. Test recent swing low of 14,467.
The volatility index (VIX) again surged to reclaim the 21-level. A further spike could lead to higher volatility. But traders are advised to stay light and keep a close tab on all the above-mentioned levels, say experts.
Here is one buy and two sell calls for the next two-three weeks:
Delta Corp | Buy | LTP: Rs. 187.50 | Target price: Rs. 224 | Stop loss: Rs. 163 | Upside: 19%
The stock has seen a spectacular recovery since the lows of March 2020. In the last few weeks, it has gained tremendous momentum. On the monthly chart, it has come out of the bear phase after a long time. But we can see prices sound treading and staying beyond the 89-day. EMA level of Rs. 148 for the first time since February 2020.
SBI | Sell | LTP: Rs. 381.10 | Target price: Rs. 358 | Stop loss: Rs. 394 | Downside: 6%
Generally, the larger picture still remains bullish for the stock but with a short-term view, it seems to have lost its momentum.
On March 12th, the stock closed below 20-day EMA for the first time in the recent past. On the hourly chart, we can see price sliding below 200-day SMA, which we believe is a sign of weakness.
Hindalco Industries | Sell | LTP: Rs. 331.50 | Target price: Rs. 310 | Stop loss: Rs. 341 | Downside: 6%
Now, Hindalco profit-booking happened after it reached a key Fibonacci ratio of 161 percent placed around Rs. 350. On the other side, we can see prices closing convincingly below 5-day EMA along with the bearish crossover in the RSI-planed oscillator.
Because of the previous week’s late correction, the weekly chart depicts a shooting star pattern which was confirmed by the correction on March 12th.