Nifty on track to hit 10,600; 3 stocks which could give up to 18% return in 6 months

The Nifty50 is seen marking time near to 10,400 level over the last few sessions because it scales back from its short-term overbought conditions generated by 300-point rally throughout the last week.

While this could result in a temporal pause in upward momentum, we tend to believe current round of profit booking can create the market healthier by operating off short-run overbought conditions.

Structurally, the rally from the September 2017 lows (9,687 to 10,451 = 764 points) is larger in magnitude compared to the preceding rally of July-August 2017, measuring 689 points.

The rally obtaining larger highlights inherent strength within the trend amid persistent demand at elevated levels and augurs well for the continuance of the up move going forward.

We expect the index to eventually head towards the target of ten,600 level within the returning weeks because it is that the measurement implication of the optimistic Double Bottom pattern shaped throughout the August – September amount.

The low of Bullish Hammer shaped at 10,100 throughout early November 2017, remains a key immediate support for the Nifty. The support space of 10,100 levels is marked by the confluence of following:

Bullish gap space resulting in the break from three-month range is placed around 10123-10096 region 50% retracements of current up move (9687-10490) ar placed at 10094 levels

Equality of preceding decline (10178-9687=491 points) as calculated from life high of 10490 is placed around 10,000 levels

The major trendline support connection the lows of Dec 2016 (7894) and September 2017 (9688) placed around 10100 levels

Here is a list of top 3 stocks which could give up to 18% return in the next 6 months:

Symphony: BUY| CMP Rs1632| Target Rs1920| Stop Loss Rs1490| Return 18%| Time Frame 6 month

The share price of Symphony remains in an exceedingly long-run structural uptrend as outlined by the rising peaks and troughs on the long-term price charts.

The recent price action has resulted in an exceedingly break from the major consolidation of over 2 years thereby signalling the commencement of a primary uptrend and provides recent entry chance to ride future up give way the medium term.

The entire secondary consolidation part since the life-time high of Rs1637 in April 2015 until date represents a bullish Cup & Handle formation as highlighted within the adjoining weekly chart.

A cup and handle formation could be a optimistic continuation pattern, that marks a secondary corrective part among the larger degree uptrend.

The strong up move within the current week has led rectifier the share value higher than the neck of the optimistic cup and handle pattern around Rs1550, thereby, signalling the top of the long-run consolidation part and implies commencement of the first uptrend.

Based on same technical observations, we tend to believe the stock is probably going to check levels of 1925 being the minimum measurement implication of the bullish cup and handle pattern i.e. the breadth of the handle (1570-1215=355 purposes) as projected from the break point of Rs1550 provides upsides towards 1925 over a medium-term horizon

GlaxoSmithKline Consumer: BUY| CMP Rs6109| Target Rs6700 | Stop Loss Rs5780| Return 10%| Time Frame 6 months

The share value of GlaxoSmithKline shopper remains in an exceedingly structural uptrend because it continues to stride northward in an exceedingly rising peaks and troughs manner. Currently, the stock is seen rising out of a two-year-long corrective part that forms a part of the larger degree uptrend.

We believe the stock is about to embark upon its next major up move, going forward. Therefore, it provides a good buying for chance for medium-term investors

The stock entered into a secondary corrective part once hit a period of time high of Rs6800 in Dec 2015. The price wise correction halted exactly close to the key value space of Rs4900 being the 61.8% Fibonacci retracement of the 2013-15 rally (Rs3800 to Rs6800).

The stock witnessed a gradual base formation around Rs4850-4900 region towards the top of 2016 before step by step rising to a high of Rs5780 by August 2017. the following correction saw the share value another time get back the worth space of Rs4850-4900 in September 2017.

The two identical lows shaped in Dec 2016 and September 2017 represent a optimistic Double Bottom formation lightness sturdy demand at the key value area.

We believe the stock has all over a healthy corrective part and is about to embark upon its next up move going forward. we expect to expect the stock to go towards our target of Rs6700 within the medium term because it is that the measurement implication of the Double Bottom pattern i.e. the neckline and base of the pattern (5780-4850=930 purposes) additional to the break point of Rs5780 comes side towards Rs6700.

South Indian Bank: BUY| CMP Rs33.00| Target Rs38| Stop Loss Rs30| Return 15%| Time Frame 3 months

South Indian bank has been in an exceedingly steady uptrend within the CY 2017 characterised by sharp rallies and shallow corrections signalling positive value structure.

The stock on Wednesday’s session registered a resolute break higher than a falling trendline connection the highs 25 October 2017 (Rs33.25) and 21 November 2017 (Rs32.15) signalling a commencement of up move once last two months consolidation.

The breakout from the trendline resistance was accompanied by a robust volume of virtually double of the 200 days average volume of 1.6 crores signalling larger participation within the direction of the trend.

We expect the stock to rally towards 38.00 within the returning months being the 138.2% value extension of the previous up move from Rs27.40 to Rs 33.25 as projected from the recent trough of Rs29.70 signals side towards 38.00 within the short term.

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