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Buy these 3 stocks for short term as another downside us expected once the pullback is over

Buy these 3 stocks for short term as another downside we expected once the pullback is over

For a second consecutive week, Nifty continued its winning streak and managed to retain its higher top and higher bottom on the daily chart.

The entire fall from the highs of 12,150 to the low of 7,511 shows 38.2 percent of retracement which is coming around 9,315, which was achieved on Friday. If Nifty manages to thrive above 9,300 levels then a further momentum towards 9,865 can be expected which is a 50 percent retracement level of the entire fall.

RSI, the momentum indicator is making a higher top and a higher bottom formation, currently at 50.65 levels which throws a ball towards further positive momentum to continue.

 Recently, immediate support is at 8,800 followed by 8,600, resistance is at 9,300 followed by 9,500.

Nifty’s broader trend continues to remain negative as long as it trades below 10,000 and currently, a causal sequence of a global market rally in Indian equities is being witnessed. Once the pullback is over, another leg can be expected on the downside.

The India VIX fell for the third consecutive week and ended below 45 which is providing solace to the bulls.

On the derivative front, the maximum open interest on the Put side is shifted to 9,000 strikes on monthly as well as weekly expiry.

 A maximum open interest on the call side is placed at 9,500 followed by 10,000 strikes. The data indicates a trading range of 9,000-9,500 for the next week.

Bank Nifty has provided breakout from a symmetrical triangle pattern on the daily chart and now it is likely to move towards 21,500 and then 22,000 levels. The immediate support is pegged at 19,700 and below that, it may drift to 19,200 levels.

A list of three stocks that could return 8-10 percent in the short term:

Ramco Cements: But| Target: Rs 600| Stop loss: Rs 520| Return: 10.5 percent

On the daily chart, the stock has secured fresh breakouts through its double bottom pattern. Their closing price was greater than the opening price in the weekly chart stock which creates an affirmative move. The MACD has also provided with a crossover that hints positive momentum to flourish.

Kotak Mahindra Bank: Buy| Target: Rs 1,270| Stop loss: Rs 1,150| Return: 7 percent

The stock has formed a Dragonfly Doji candlestick pattern on the daily chart which is considered as a reversal pattern. The stock formed a symmetrical triangle pattern, where a breakout is placed at 1270. The momentum indicator and oscillators are well in buy mode.

Bajaj Finserv: Buy | Target: Rs 5,400 | Stop loss: Rs 4,800 | Return: 8 percent

The stock after forming base has provided breakout from a symmetrical triangle pattern on the daily chart. The stock has also formed a breakaway gap on the daily chart, which hints of positive momentum to continue.

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