Top 5 buy or sell trading ideas that could give up to 28% return in 3-4 weeks

Indian market closed the Diwali week with gains of over 1 per cent, and the trend is likely to remain volatile this week as well.

Markets will remain busy dealing with global macro numbers, where US inflation numbers that are scheduled on 10th November will be the most critical one, while China will also announce its inflation numbers on the same day.

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On the global front, FIIs' behavior along with inflation numbers from US and China will remain key factors for the next week, suggest experts, and on the domestic front, IIP as well as inflation numbers will be tracked.

Last week, foreign institutional investors remained net sellers in 3 out of the last 4 trading sessions in the cash segment of Indian equity markets. They have pulled out nearly Rs 700 crore from the Indian market for the week ended November 4.

"If we talk about the derivative data, then FIIs' long exposure in the index future stands at 53%, whereas Put call ratio is trading at the 1.08 mark that is neutral for the market," Santosh Meena, Head of Research, Swastika Investmart Ltd, said.

"If we look at the OI distribution for the 11th November expiry then it is very wide between 17000-18000 however 18000 is immediate and strong resistance," he said.

Technically, the Nifty is respecting its 50-DMA which is a positive sign. On the upside 18000-18200 will act as a stiff resistance while 17700-17500 will act as a support.

“The near-term texture is weak where 18000-18200 is a critical resistance area where we can again see selling pressure while if Nifty manages to take out this zone then we can say that correction has ended and the market is ready for fresh expansion,” says Meena.

“On the downside, if Nifty slips below its rising 50-DMA that may coincide with the 17700 level then we can expect further weakness towards the 17450-17250 zone,” he added.

Here is a list of trading ideas from various experts that could give 4-28% upside in the next 3-4 weeks:

Expert: Sacchitanand Uttekar, DVP–Technical (Equity), Tradebulls Securities

Dr. Lalpath Lab: Buy| LTP: Rs 3,638| Target: Rs 4,030| Stop Loss: Rs 3,480| Upside 10%

Lal PathLabs has been locked in within a bullish channel pattern since March 2021. The occurrence of yet another ‘Bullish Harami’ formation reconfirmed the base of the ongoing channel pattern.

Trading longs can be deployed again with a stop below 3,480 from here on for a move back towards 4,030.

GATI: Buy| LTP: Rs 156| Target: Rs 200| Stop Loss: Rs 140| Upside 28%

‘Inverse Hammer’ formations on monthly & weekly scales are getting confirmed. A sustained breakout above 170 would accelerate the momentum further towards the ‘Rounding Bottom’ formation pattern target placed around 200. Fresh longs to be added with a stop below 140.

JSW Steel: Sell| LTP: Rs 678| Target: Rs 630| Stop Loss: Rs 705| Downside 7%

Regular occurrence of negative candlestick formation on pullback along with its weakening trend strength indicators is not a healthy sign for the ongoing consolidation to sustain.

The recent contraction within the 660-700 zone could see yet another round of selling as daily RSI again slips below 50 with its short-term averages converging into a bearish setup. Short selling opportunities could prevail with stop above 705 for yet another leg towards 630.  

Brokerage Firm: SMC Global Securities Ltd

Grasim Industries Ltd: Buy| LTP: Rs 1,791| Target: Rs 1,840-1,870| Stop Loss: Rs 1,700| Upside 4%

Grasim made a 52-week low at Rs 775.50 on 02nd November 2020 and a 52-week high of Rs. 1,805 on 2nd November 2021. The 200-Days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1,417.58.

As we can see on charts the stock is trading in an uptrend since August 2020 and moving in higher highs and higher lows sort of “Rising Wedge” on weekly charts, which is bullish in nature.

Last week, the stock has given the pattern breakout and registered an all-time high and managed to close at high levels along with high volumes.

On the technical indicators front such as RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of 1,760-1,770 levels for the upside target of 1,840-1,870 levels with a stop loss below 1700 levels

Oberoi Realty: Buy| LTP: Rs 1,032| Target: Rs 1,130-1,150| Stop Loss: Rs 970| Upside 11%

The stock made a 52-week low of Rs 425.00 on 06th November 2020 and a 52-week high of Rs. 1051.90 on 03rd November 2021. The 200-Days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 694.07.

Short-term, medium-term, and long-term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts.

Apart from this, it has formed a “Bull Flag” pattern on weekly charts and given the breakout of same in last week and has managed to close above the same along with high volumes so buying momentum may continue for coming days.

Therefore, one can buy in the range of 1010-1015 levels for the upside target of 1130-1150 levels with a stop loss below 970 levels.

(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.)