Positive stocks with 5-11 per cent upside potential

Published November 30, 2018

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Yes, the broader market index Nifty 50 ended on a positive note at 10858.70 points and almost at the same level where it had closed on October 3rd before breaking down with a  downside gap. That gap is now filled up as Nifty 50 on Thursday opened with an upside gap and filling all its earlier gaps since October.

The index is once again inside the rising trend channel in the medium term and is expected to continue to rise. There is resistance at 11120 points and support around 10580 points.

We look at three positive stocks that are in a rising trend and have an upside potential of 5-11 per cent in the short to medium term.

Torrent Pharmaceutical (TORNTPHARM.NS) Close: 1714.60

Investors have paid higher prices over time to buy Torrent Pharmaceuticals Limited and the stock is in a rising trend channel in the medium long term. Rising trends indicate that the company experiences positive development and that buy interest among investors is increasing.

The volume balance is positive, which suggests that the price rises on high volume and corrects on low volume. The stock has resistance at 1830 rupees, or equivalent to 7 percent from yesterday's close. While there is support around 1690 in the short term which is 1.4 per cent lower. For more conservative traders there are supports at 1630 and 1560 rupees.

Investtech's outlook (one to six months): Positive

Havells India Limited (HAVELLS.NS) Close: 689.55

Havells India Limited is in a rising trend channel in all time frames, short medium and long term. The stock price corrected in October and started to rise again after establishing a bottom at 564 rupees.

Next resistance is 5 per cent above last close around 725 rupees. On the downside there is support around 647 level.

The volume balance indicator is positive and supports price rise. The short term momentum of the stock is strongly positive, with RSI above 70. This indicates increasing optimism among investors and further price increase for Havells India

Investtech's outlook (one to six months): Positive

SRF Limited (SRF.NS) Close: 2152.30

SRF Limited is inside a rising trend channel in the medium term. After correcting for some time, it rose again above its resistance at 2000 which can now act as a potential support for the stock in the near future. The stock has potential to rise by 11 per cent or more as next resistance is around 2400 rupees.

Both the volume balance and the momentum indicator are positive, which strengthens the underlying trend. Further rise for SRF Limited is expected.

Investtech's outlook (one to six months): Positive

The analyses are based on closing price as per November 29, 2018. Maintaining proper stop loss is always recommended.