Stocks For Short Term: Moneycontrol Tips

3 Stocks For Short Term Investment

13 July 2020, Monday

Market is bullish. There is possibility of correction at 11000 level of Nifty. All majority momentum indicators are showing overbought zones.Nifty's 50 DMA has crossed over 100 DMA forming a Golden Crossover pattern, which suggests prices will be bullish in mid-term and buy on the dip strategy will yield better results.

Here is the list of three stocks which could return 10-19 percent in short term:

1. IndusInd Bank: Buy Around Rs 530 | Target: Rs 630 | Stop Loss: Rs 470 | Upside: 19 percent

The scrip spurted from a low of Rs 330 after forming Bullish Harami candlestick pattern, it showed pullback on the upside after making the high of Rs 577 and started consolidating there. Currently, it is waiting for the breakout on the upside so that it can accelerate buying momentum further. The emerging line of polarity on the daily time frame of the chart is suggesting bullish momentum in the scrip. Indicators and oscillators are also showing a conducive scenario in the coming sessions. So based on the mentioned technical structure, one can go long in the scrip around Rs 530 for the target of Rs 630 mark with stop loss of Rs 470.

2. Sun Pharmaceutical Industries: Buy Around Rs 485 | Target: Rs 575 | Stop Loss: Rs 435 | Upside: 18 percent

The stock is in an uptrend as it is forming higher tops and higher bottom on the weekly chart. After a week's negative to sideways correction, the stock is showing a resumption of uptrend. The stock has been forming an inverted Head & shoulder pattern and it is waiting for the breakout on the upside. The Average Directional Index (ADX) line, an indicator of trend strength, has moved above the equilibrium level of 20 with rising Plus Directional line on the weekly chart. Thus, traders can accumulate this stock around Rs 485 with a stop loss below Rs 435 and a target of Rs 575 levels.

3. Dabur India: Buy Around Rs 465 | Target: Rs 515 | Stop Loss: Rs 435 | Upside: 10 percent

The stock saw a decline from Rs 515 to Rs 421. Since then, it has been consolidating in the Rs 465 to Rs 435 range at lower levels. On the weekly chart, the stock has formed a double-bottom reversal pattern. Volumes have been high at lower levels, indicating accumulation in the stock. After a recent rally from the lower end of the range, the stock formed higher lows, leading to an ascending triangle pattern on the daily chart. MACD has given a positive crossover with its average above equilibrium level of zero on the daily chart. Thus, stock can be bought at current levels and on dips to Rs 465 with stop loss below Rs 435 for a target of Rs 515 levels.

Disclaimer: This article is written on the basis of Moneycontrol Article. These are my own views. Take your decisions after doing your own analysis.

ALL CREDIT: www.moneycontrol.com