In a weary turn of events, Nifty lost its early morning impetus that had earlier helped it scale the peak of 10,115. Suffering a sharp fall, it eventually closed flat at 10,020.
The ensuing bearish meeting line candlestick pattern now hints at a possible consolidation on the heels of the recent agile up moves.
The fall could have been even nastier for Nifty, had HDFC and HDFC Bank not stood out with gains of 6 percent and 2 percent respectively.
The Nifty breadth showed 33 stocks declining against an advance of 18 stocks. Despite the poor Nifty breadth, higher weightages of HDFC twins arrested the damage.
Other index components however locked horns with crude realities at the top. Clearly, few select stocks are leading the markets higher as broad based participation has gone amiss in the uncharted zone.
Though yet to face any unsettling events in 2017, rallying 27 percent till date, Nifty is likely to embark on a treacherous voyage from here on, grappling with multiple gann supply points.
Three-digit gann number of 101(00), four digit gann number of 1009(0) and multiplication of 360 degrees by applying a square of 9 from the significant low of 9,342 is also placed around 10,130.
On higher time frame charts, PRZ of potential ABCD pattern stands near 10,050 mark. So, the point of confluence is seen between 10,050-10,130.
Here is a list of top 4 stocks which can give up to 13% return in short term:
South Indian Bank: BUY| Target Rs 34| Stop Loss Rs 29| Return 13%
South Indian Bank saw a sharp up move from April 2017 to June 2017 (from Rs21-Rs30). Post that, it witnessed sideways consolidation between Rs30 and Rs27. Recent consolidation took shape of a pennant.
Bharat Financial Inclusion: BUY| Target Rs 890| Stop Loss Rs 795| Return 8%
It is a channeling stock with an upward tilt. Price movement since June 2017 is controlled by two parallel trend lines. The primary ascending trend line connects consecutive higher lows (which has acted as a solid support on every decline).
Voltas: BUY| Target Rs 550| Stop Loss Rs 500| Return 7%
It attempted lifetime new highs in Thursday’s trade. Chart structure of last won months clearly highlights that the stock had been consolidating at the top. Any kind of consolidation in an up trending stock at the top is considered as bullish in nature.
IOC: SELL| Target Rs 345| Stop Loss Rs 380| Return 6%
The stock is showing classic signs of topping out. After forming multiple peaks around Rs450 in May 2017, the stock has underperformed and has been steadily moving lower, breaking below important support levels.
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