Nifty closed at a record closing high on May 28 above 11,900. It witnessed selling pressure around 11,950 for the second day in a row and now a sustained trade above 11,950 can take the index higher to levels of 12,060-12,120.
On the flip side, a trade below 11,850 may trigger profit booking dragging the index towards 11,810-11,740. The Relative Strength Index (RSI) on the daily time frame suggests that the bullishness remains intact and the rally has more legs on the upside.
Here are three stocks that could give 7-15 percent return in the next 3-4 weeks:
Vedanta: Buy| LTP: Rs 169| Target: Rs 181| Stop loss: Rs 160| Upside: 7 percent
On the daily chart, Vedanta is on the verge of a breakout from a Triangle pattern neckline placed at Rs 168. A sustained trade beyond this neckline backed by healthy volumes can take the stock higher to Rs 176-181.
Moreover, it had taken support at the 78.6 percent Fibonacci retracement level in the recent correction and turned higher indicating that the bulls are actively buying at the support area to push the stock higher.
The RSI has also turned north after taking support at the 40-level forming a higher low. The stock may be bought in the range of Rs 165-167 for targets of 176-181, keeping a stop loss above 160.
Shankara Building Products: Buy| LTP: Rs 521| Target: Rs 600| Stop loss: Rs 520| Upside: 15 percent
On the daily chart, Shankara Building Products has broken out from an Ascending Triangle triggering bullish trend in the stock.
Further, the breakout was backed by high volumes confirming the strength in the breakout. The RSI has also turned higher after making a positive divergence suggesting higher levels.
The stock may be bought in the range of Rs 560-565 for targets of Rs 600-635, keeping a stop loss below 520.
Nestle India: Buy| LTP: Rs 11,147| Target: Rs 11,850| Stop loss: Rs 10,600| Upside: 11 percent
On the daily chart, Nestle India is approaching the upper end of the Ascending Triangle pattern placed at Rs 11,190. A sustained trade beyond this neckline can take the stock higher to Rs 11,600.
On the weekly time frame, it has turned upwards after taking support at the 61.8 percent Fibonacci retracement confirming that the bullishness is intact in the stock.
Further, RSI has turned north after taking support at the 40-level suggesting that there are more legs to this rally following the bullish breakout. The stock may be bought in the range of Rs 11,000-11,050 for targets of Rs 11,500-11,850, keeping a stop loss above Rs 10,600.
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