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Experts line up top 10 stock ideas as bulls may keep up the rally on Dalal Street
Experts line up top 10 stock ideas as bulls may keep up the rally on Dalal Street
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The market put up a seven-week rally for the first time in the last three years and continued forming higher highs, higher lows for three weeks in a row with healthy volumes. The momentum indicators RSI (at 75.87 levels) and MACD (moving average convergence divergence) also showed positive bias. Hence, the short-to-medium term seems to be strong for the market, but in the near term, given the RSI in the overbought zone and PCR (Put-Call ratio) reached the 1.5 mark, the consolidation or some pullback can't be ruled out, experts said, adding that the resistance for the Nifty 50 is likely to be at the 21,500-21,600 levels, with support at the 21,300-21,000 zone.In the week ended December 15, the Nifty50 climbed 2.32 percent to end at a record closing high of 21,457 and formed a bullish candlestick pattern on the weekly charts, in addition to a 3.5 percent rally in the previous week, taking the total current month's gains to over 6.5 percent. On Friday, it was up 1.3 percent and formed a bullish candlestick pattern on the daily charts."The bulls certainly defy gravity, as there is no halt to their domination. From a technical point of view, as the Nifty index navigates into uncharted territory, defining resistance is a bit challenging," Osho Krishan, senior analyst for technical and derivative research at Angel One, said.He, however, feels that with the broad-based participation and favourable global conditions, this looks very lucrative and that's where caution is required.Simultaneously, with the existing overbought parameters, he advised to focus on risk management and to keep booking profits at regular intervals. On the downside, a series of support could be seen from the 21,300-21,200, followed by the 21,100 zone in the comparable period, he said.Amol Athawale, vice president of technical research at Kotak Securities, too, is of the view that the current market texture is bullish but due to temporary-overbought conditions, one could see some profit booking at higher levels.Moneycontrol collated a list of top 10 stock ideas from experts, which can give healthy return in the next 3-4 weeks. The closing price of December 15 considered for the calculation of stock returns.Expert: Nandish Shah, research analyst (technical and derivative) at HDFC SecuritiesKarur Vysya Bank: Buy | LTP: Rs 170 | Stop-Loss: Rs 160 | Target: Rs 181-192 | Return: 13 percentThe stoc...