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On the upside, 10,820–10,840 are the levels to watch out for. On the flipside, 10,725 followed by 10,677 are likely to act as important support levels.


The Nifty closed 0.54 per cent higher for the week ended July 6 amid fears of a trade war between US and China and a depreciating rupee versus the dollar. The index closed above most of its crucial short-term moving averages such as 5, 13, and 50-day exponential moving average (EMA) on the daily charts.

It failed to hold on to its crucial level of 10,800 and closed marginally above 10,770. Most analysts advise investors to wait for a breakout on either side before initiating fresh positions. But the way declines are getting bought into the downside remains fairly limited, they added.

“The market is yet to confirm a clear direction as the consolidation continues within recent boundaries. We would rather be comfortable becoming a follower and waiting for the decisive move outside the range.

On the upside, 10,820–10,840 are the levels to watch out for. On the flipside, 10,725 followed by 10,677 are likely to act as important support levels.

Recently, there has been a whipsaw in the downward direction. But now any decisive breakout in either direction is likely to trigger some momentum as well as a trended move,” Sameet Chavan, Chief Analyst, Technicals and Derivatives at Angel Broking, said.

Meanwhile, experts said investors should continue with a conventional approach of following stock-centric moves. During the week, cement counters performed well in line with the street expectations. Apart from this, marquee paint stocks showed tremendous outperformance towards the fag end.

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State Bank of India: Buy| LTP: Rs257.45| Target: Rs 282| Stop Loss: Rs 250| Return 9.5%

This counter appears to be consolidation mode after retracing 62 per cent of its recent up move from the lows of Rs232 – 290 levels thereby providing a short-term trading opportunity on the long side.

Hence, positional traders can buy SBI at current levels for a logical target of Rs282 on the higher side with a stop loss placed below Rs250.

Apollo Tyres: Buy| LTP: Rs 260| Target: Rs 279| Stop Loss: Rs 244| Return 7%

After registering double bottom around Rs246 levels, Friday’s up move on relatively higher volumes on Apollo Tyres clearly suggests that this counter might have initiated a fresh upswing.

The upswing should ideally take the stock towards its recent top of Rs279. Hence, traders can adopt a two-pronged strategy in this counter of buying now and on declines between Rs255 – 252 with a stop loss placed below Rs244.

L&T Finance: Buy| LTP: Rs 149.25| Target: Rs 164| Stop Loss: Rs 142| Return 10%

Recent correction from the highs of Rs170 brought this counter towards its long-term support levels of Rs145 where it witnessed some consolidation for the last 4 sessions.

Friday’s up move appears to be some sort of confirmation that consolidation phase is over and this counter is ready for a pullback attempt.

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