Nifty down 8% from highs! Top 10 trading idea to buy that could give 6-22% returns

Bears took control of D-Street pushing the benchmark indices below crucial support levels. Both Sensex, and Nifty50 witnessed their worst selloff since April 2021.

The Nifty50 has been under pressure since October 19 when it touched the record high of 18,604. Since then, the index has lost more than 8 per cent.

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The index is now trading below its crucial short-term moving average of 50-DMA. It also breached the 100-Days SMA placed at 17,101, and the next big support is placed at 200-Days SMA at 16,057 levels.

Taking a cue from the November expiry more short positions were rolled over into the December series. Renewed concerns over COVID, as well as the possibility of extensions of lockdowns across the world, dented the sentiment.

FII’s have already been selling aggressively in the cash segment, and added short positions post freaky Friday when Nifty plunged more than 500 points.

“We continue with our cautious stance, and until any signs of reversal are seen, short-term traders should avoid aggressive bets and trade with proper money management,” Ruchit Jain, Trading Strategist, 5paisa.com, said.

“As far as levels are concerned, 16800 is the immediate level that we expect in the index, which is the target of the bearish technical pattern, and below that 16500 would be in sight for the December series,” he said.

Jain further added that on the flipside, 17300 would now be seen as immediate resistance on any pullback.
 
We have collated a list of top 10 trading ideas from various experts that could give 6-22% return in the next 3-4 weeks:

Expert: Sachin Gupta, AVP, Research at Choice Broking

Welspun Corp Ltd: Buy| LTP: Rs 169| Target Rs 190-210| Stop Loss Rs 155| Upside 12%

On the daily timeframe, the stock has confirmed the breakout from the Inverse Head & Shoulder pattern and moved above the neckline with a good volume spurt, which indicates bullish strength in the counter.

The price has also moved above Ichimoku Cloud & the upper leg of “Bollinger Band” which suggests that a bullish rally will continue further in the near term.

On the weekly chart, the stock price has shifted above the 61.8% Retracement Level and above the prior swing highs of 165.90 levels, which confirms the bullish presence in the stock.  

Moreover, the stock has also given a breakout of the Horizontal Line, which points out the northward journey in the counter.

As per the above technical parameters, we are expecting a bullish move in Welspun Corp for the target of 190-210 levels while on the downside, support comes at 155-150 levels.

Shipping Corporation of India: Buy| LTP Rs 147| Target Rs 180-200| Stop Loss Rs 130| Upside 22%

The stock is trading in a bullish territory after the breakout of the Bullish Flag pattern on the weekly chart, which indicates the upward direction in the stock for the long term.  

In the recent week, the price has moved above the prior swing highs of 145.50 levels, which suggest bullish strength in the stock.

Moreover, the price has been hovering above Ichimoku Cloud and Upper Bollinger Band formation, supporting a bullish trend for the long term.

In addition, the stock price has shifted above the 50% Price Extension, which confirms bullish presence in the stock.

On a daily chart, the price has given a Trendline breakout and is moving above it. A volume activity has been rising gradually in the stock, which suggests a buying interest among the traders.

As per the above technical parameters, we are expecting a bullish move in SCI for the target of 180/200 levels while on the downside, the support comes at 130 levels.

Sutlej Textiles & Industries: Buy| LTP Rs 83.90| Target Rs 100-125| Stop Loss: Rs 75| Upside 20%

On the daily chart, the stock has formed a “Bullish Engulfing” candlestick pattern, which indicates an upside move in the counter.

Moreover, the stock has given a breakout of Cup & Handle Formation which points out northward journey in the counter.

Additionally, the price has also moved above the upper leg of “Bollinger Band” which suggests a bullish rally will continue further in the near term.

Furthermore, the stock has been trading above 21*50 Days Moving Averages with a bullish crossover which shows a positive trend for the time being.

As per the above technical parameters, we are expecting a bullish move in Sutlej Textiles for the target of 100-125 levels while on the downside support comes at 75 levels.

Expert: Kavita Jain, Learning Head & Sr. Equity Research Analyst at Arihant Capital

PI Industries: Buy| LTP: Rs 2927| Target Rs 3115| Stop Loss Rs 2860| Upside 6%| Duration 1-2 week

On the weekly chart, the counter is witnessing a Morning Star formation with follow through green candle closing above candlestick formation of Nov. 18, 2021.

On a daily time frame, the counter is depicting Inverse H&S bullish reversal price pattern formation revealing the target projection of 3115-3160.

Alkem Laboratories: Buy| LTP Rs 3563| Target Rs 3777-3951| Stop Loss Rs 3240| Upside 6%| Duration 2-3 Week

Alkem Laboratories was quoting Rs. 3562 as closing rate on Friday, November 26, 2021. Stock is trading in an upward sloping channel on a weekly chart and witnessing ‘Hammer’ -A Bullish Reversal Candlestick formation on trendline support of a channel.

Leading Indicator RSI at 51.65 confirming an uptrend and the extend price strength towards northward direction.

Expert: Mehul Kothari, AVP – Technical Research at AnandRathi

Britannia: Buy on dips| LTP: Rs 3543| Stop Loss: Rs 3380| Target Rs 3800| Upside 7%

Till the time there is uncertainty in the market, defensive play can be a better option. The stock of Britannia Industries is hovering near its 200-Days SMA support and that support coincides with the ICHIMOKU cloud on the weekly scale.

Thus, the downside from here seems to be marginal. Traders can buy the stock on dips between 3550 – 3500 with a stop loss of 3380 for the upside target of 3800 in the next 3 – 4 weeks

Cadila Healthcare: Buy on dips| LTP: Rs 473| Stop Loss: Rs 420| Target: Rs 530| Upside 12%

Cadila too is a pick from defensive pack i.e. pharma. The stock has been in a corrective mode since quite some time and has confirmed a reversal on the lower degree chart.

The risk-to-reward ratio looks lucrative to go long. Traders can buy the stock on dips between 470 – 460 with a stop loss of 420 for upside target of 530 in the next 3 – 4 weeks

HDFC Bank: Buy on dips| LTP: Rs 1490| Stop Loss: Rs 1410| Target Rs 1600| Upside 7%

HDFC Bank has been chosen as the third stock for a scenario where things start settling down. In that case HDFC Bank could give a decent pullback since it is trading near strong support.

Traders can buy the stock on dips between 1490 - 1480 with a stop loss of 1410 for upside target of 1600 in the next 3 – 4 weeks

Expert: Likhita Chepa, Senior Research Analyst, CapitalVia Global Research Limited

Biocon: Buy above Rs 380| LTP: Rs 362| Target: Rs 430| Stop Loss: Rs 340| Upside 19%

The stock has formed a Spinning Top candle on its weekly charts. It looks it has a resistance of important moving averages around the level of 380.

Going forward any breakout above this level is expected to bring positive momentum in the stock. We recommend initiating a buy above 380 with a stop loss of 340 and a target of 430.  

Engineers India Ltd: Buy above 75.10| LTP: Rs 73.90| Target: Rs 88| Stop Loss: Rs 65| Upside 17%

The stock has formed a reversal pattern on its weekly charts and is taking support of its important moving averages. The momentum oscillators are also indicating bullish strength in this stock.  

Going forward, any breakout above the level of 75 is expected to bring positive momentum in the stock. We recommend initiating a buy above 75.10 with a stop loss of 65 and a target can be placed at 88.  

Poly Medicure: Buy above Rs 1025| LTP: Rs 979| Target Rs 1200| Stop Loss: Rs 869| Upside 17%

The stock has given a trend line breakout on its weekly charts and is taking support of its important moving averages. The stock is witnessing resistance around the level of 1025.  

Going forward, any breakout above the level of 1025 is expected to bring positive momentum in the stock. We recommend initiating a buy above 1025 with a stop loss of 869 and a target of 1200.  

Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.