The Nifty 50 today recorded its 4th ‘Homing Pigeon’ candlestick structure, which was first established around the ongoing trend around 7,511. The most recent model event is Elevated Base & its ‘Make or Break’ level is marked at 11,111.
The index has been consolidating into a ‘broad structure’ for the past few weeks and has been well supported with today’s breakout volumes since its recent consolidation. Because it helped the index to register strongly close to the highest point of the day.
As previously highlighted, we expect the index to technically swing beyond the top of the ‘Broadening Formation (11,377)’ and move faster towards the 11,500 zone. Less than 11,100 certification is required from here if there is a weakness. Since the broader structure is the unified pattern that occurs in the later stages of upmove, it is advisable to be cautious and limit short-term trades with a greater emphasis on stock-specific trading setups.
Major trend weakness or distortion is less than 11,100 from here for any large degree corrective action towards 10,880. The move, which has been going on until then, is expected to continue till 11,500.
Here are three stocks that could return 7-16 percent in short term:
Thermax: Buy | Target: Rs 900-920 | Return: 14-16 percent
A breakout above its 10-week consolidation, with its corresponding RSI value moving above the 50 mark, is a healthy sign of a reversal for the first time since January 2020. Positional longs with a stop of less than Rs 770 can be considered to return towards the Rs 770-920 zone.
Biocon: Buy | Target: Rs 440 | Return: 11 percent
The performance of strong sectors provides a good opportunity to add a long time to the formation of ‘bullish harami’. At the base to form an ongoing rift. The ‘Falling Wedge’ is placed at the upper end of the structure at around Rs 410. On which the stock will see a significant rally back to its standard of living. Trading Longs can be considered with a stop loss of less than Rs 382 to return towards Rs 440 from here.
United Breweries: Buy | Target: Rs 1,077 | Return: 7 percent
The formation of the ‘Morning Star’ will post its quarterly results announcement; The positive momentum of the short-term moving averages of 5 & 20 EMAs is an early sign of the impending momentum. Trading longs can be added with a stop of less than Rs.975.
The perspectives and investment tips are given in this section are the expert’s own and not that of the website or its management. We encourage clients to check with certified experts before taking any position in the stocks/shares mentioned.