Hot Stocks | TV18 Broadcast, Eveready Industries, Gujarat Gas can give 10-19% returns in short term

Nifty continued its winning streak for the seventh consecutive day on May 31 as it gained 147 points to close at yet another new high of 15,582.80.

With intermediate and long-term momentum readings like the 14-week and 14-month RSI in rising mode, and not showing any signs of negative divergence, we expect the uptrend to continue.

Also, plus DMI is placed above the minus DMI and the ADX has crossed 20 level on the upside which suggests Nifty could continue its upward journey in the near term.

In the options segment, we have seen Put writing at 15,300 level. During the last correction, Nifty found support at 8-day EMA, which is currently placed at 15,311, and bounced back.

This level coincides with the Put writing level of 15,300. Therefore, we believe that the short-term trend will remain intact as long as Nifty is trading above 15,300.

A short-term trend reversal would be confirmed only if the Nifty closes below 15,300.

Immediate targets for the Nifty are seen around 16,000-16,100, derived from the channel breakout on the weekly chart.

Bank Nifty was the leader in the recent up move of the market and we expect the same trend to continue.

Private banks, PSU banks and NBFC space should be on the radar for getting higher returns in the coming days.

Bank Nifty is expected to move towards the next targets of 36,500 and 37,700.

Longs should be protected with 15,300 stop loss in Nifty and 34,500 in the Bank Nifty.

Here are three buy recommendations for the next 2-3 weeks:

TV18 Broadcast | LTP: Rs 42 | Target price: Rs 50 | Stop loss: Rs 38 | Return 19%

This stock has been forming a bullish higher top higher bottom pattern on the daily chart.

It has broken out on the monthly chart by closing above the resistance level of Rs 41 with higher volumes.

With intermediate and long-term momentum readings like the 14-week and 14-month RSI in rising mode and placed above 60, we expect the uptrend to continue.

Eveready Industries India | LTP: Rs 319.50 | Target price: Rs 360 | Stop loss: Rs 300 | Upside: 13%

This stock has already broken out from the symmetrical triangle on the weekly chart.

Accumulation is going on in this stock where volumes have been higher on up days compared to down days for the last few days.

Plus DI is placed above the minus DI while the ADX line is placed above 25, indicating momentum in the current uptrend.

Gujarat Gas | LTP: 537.50 | Target price: Rs 590 | Stop loss: Rs 510 | Upside: 10%

This stock has broken out on the daily chart with higher volumes to close at the highest level since April 28.

It has formed a strong base of around Rs 510, taking support multiple times around this level.

Oscillators like RSI and MFI are showing strength in the stock. Plus DI is placed above the minus DI, indicating the stock is in an uptrend.