Tread with caution in December series; 5 stocks which can give up to 15% return

By Shitij Gandhi (Senior Research Analyst, SMC Global Securities Ltd) In the November series, we have continuously seen selling by foreign investors (FIIs) at higher levels which clearly indicates short buildup and discomfort in the market.

The rollover data for December series indicates short rollover as we are seeing continuous short buildup by FIIs in December series indicating further caution.

The range of 10,000-10,300 levels will remain crucial for the coming week as indicated by option open interest concentration.

Though, if Nifty falls below the 10,000 mark, we can expect correction till 9,800 levels on the back of further selling pressure.

However, on the bounce, the index will face strong resistance at 10,200-10,250 levels. The overall data has turned slightly negative and more weakness can be seen in coming sessions. The next support is placed around 10,000, 9,900 levels in Nifty.

Top 5 stocks which could give up to 15% return in short term:

Balkrishna Industries: BUY| Target Rs2410| Stop Loss Rs2010| Return 12%

After a breakout above Rs1750 levels, the stock witnessed a sharp rally last month and went into consolidation thereon. In the recent consolidation, the stock formed a rectangle formation by sticking between Rs2050-2200 levels.

However, in Tuesday’s session, bulls were seen interested in the stock as prices gave a breakout above the rectangle formation with marginally higher volumes. Traders can accumulate the stock in a range of Rs2150-2200 for the target of Rs2410 and a stop loss below Rs2010.

Alkem Laboratories: BUY| Target Rs2310| Stop Loss Rs1950| Return 11%

The stock has been trading in a rising channel and is consistent in forming higher highs and higher lows on the daily charts with consistent volumes.

Moreover, it has formed a rounding bottom formation on the weekly charts along with positive divergence on the RSI oscillator.

Additionally, the fresh breakout on the daily charts has also been observed in prices in Tuesday’s session above Rs2100 levels with larger volumes. Traders can accumulate the stock in a range of Rs2080-2110 for the upside target of Rs2310 and a stop loss below Rs1950.

Bajaj Holdings: BUY| Target Rs3160| Stop Loss Rs2720| Return 9%

The stock has been consolidating in range of Rs2650-3000 from last more than fourteen weeks and has now formed ascending triangle formation on daily and weekly charts after a recent uptrend.

At the current juncture, the positive divergence on stochastic on weekly interval along with daily price breakout in pattern formation suggest for next upside in prices in coming sessions. Traders can accumulate the stock in a range of 2875-2900 for the target of 3160 with a stop loss below 2720.

Aegis Logistics: BUY| Target Rs278| Stop Loss Rs222| Return 15%

The consolidation has been seen in the stock from last eleven weeks result to which the stock has formed “W” formation on daily charts and bullish flag formation on weekly chart interval.

Additionally, the stock has given breakout above the pattern formation in yesterday session with marginally larger volumes. The breakout in prices suggest for next up move in prices, Traders can accumulate the stock in a range of Rs241-246 for the target of Rs278 with a stop loss below Rs222.

NMDC: BUY| Target Rs144|Stop Loss Rs122| Return 10%

After recovering sharply from its recent lows, once again stock has managed to hold above its short and long-term moving averages with consistent buying on every dip.

Moreover, on the daily charts, the stock has formed a cup and handle formation and has also given a breakout above the pattern formation which signals for more upside in prices in coming sessions.

Traders can accumulate the stock in a range of Rs130-132 for the target of Rs144 and a stop loss below 122.