Rajesh Palviya handpicks Can Fin Homes, EIL among top 4 stocks that could give 10-20% return

The Nifty50 started the week on a positive note and remained extremely volatile on either side throughout the Budget week. The Nifty closed at 21854 on the 2nd of February with a gain of 501 points on a weekly basis.

On the weekly chart, the index has formed a bullish candle with an upper shadow, indicating profit booking near the all-time high level.

The chart pattern suggests that if Nifty crosses and sustains above 22000 level, it would witness buying, leading the index towards 22150-22300 levels.

However, if the index breaks below the 21700 level, it will witness selling, taking the index towards 21650-21500.

For the week, we expect Nifty to trade in the range of 22300-21500 with a positive bias.

The weekly strength indicator RSI is on the verge of crossing over above its reference line, indicating the trend may change to positive.

Here is a list of the top 4 trading ideas for the next 10-20% return in the next 3-4 weeks:

Can Fin Homes: Buy| LTP Rs 828| Target Rs 895-925| Stop Loss Rs 760| Upside 11-15%

On the weekly chart, Can Fin Homes breaches the ‘Symmetrical Triangular’ pattern at the 816 level, indicating the initiation of an uptrend following seven months of consolidation.

Volume activity declined during pattern formation; however, there was an increase in volume at the breakout, indicating heightened market participation.

The closing above the upper Bollinger Band on the weekly chart has generated a buy signal. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

The above analysis indicates an upside of 895-925 levels. The holding period is 3 to 4 weeks.

Engineers India Ltd: Buy| LTP Rs 261| Target Rs 281-292| Stop Loss Rs 218| Upside 11%

On the weekly chart, EIL has broken out above the ‘Multi-Year Resistance’ zone around 206 with a bullish candle, signaling the continuation of a medium-term uptrend.

The increase in volume activity at the breakout suggests an influx of market participation, emphasizing the significance of the price movement.

The stock is holding above key averages of 20, 50, 100, and 200 days Simple Moving Average (SMA), signaling a strong uptrend.

The weekly strength indicator RSI is bullish and is holding well above its reference line indicating a positive bias. The above analysis indicates an upside of 281-292 levels. The holding period is 3 to 4 weeks.

Hindustan Copper Ltd: Buy| LTP Rs 301| Target Rs 334-345| Stop Loss Rs 268| Upside 14%

On the weekly chart, Hindustan Copper broke above the ‘Consolidation’ zone between 290-257, signaling the continuation of the medium-term uptrend.

The stock is exhibiting a pattern of higher high-low formations on the weekly chart and holding above the medium-term upward-sloping trendline, signaling a medium-term uptrend.

The stock is maintaining its position above the 23% Fibonacci Retracement level of the rally from 135 to 289, establishing a medium-term support base of around 254.

The weekly strength indicator RSI has generated a buy signal with a crossover above its reference line.

The above analysis indicates an upside of 334-345 levels. The holding period is 3 to 4 weeks.

Oriental Hotels: Buy| LTP Rs 133| Target Rs 150-159| Stop Loss Rs 120| Upside 19%

On the weekly chart, Orient Hotels has broken out above the ‘Consolidation’ zone between 132-116 with a bullish candle, signaling the continuation of a medium-term uptrend.

Volume activity declined during pattern formation; however, there was an increase in volume at the breakout, indicating heightened market participation.

The stock is currently following an upward-sloping channel, having recently found support at the lower band and is now trending towards the upper band.

The weekly strength indicator RSI is bullish and is holding well above its reference line indicating a positive bias. The above analysis indicates an upside of 150-159 levels. The holding period is 3 to 4 weeks.

(The author is VP-Technical & Derivative Research, Axis Securities)

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

Harry Byrne

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