These top 5 stocks could offer up to 13% returns ahead of April expiry

Domestic equity markets opened the week on a positive note with the Nifty hitting its intraday high of 10,638 levels on Monday. But profit booking in the last hour of trade saw the index closing near its opening, with a gain of 0.20 percent at 10,585 levels.

The market’s breadth was flat with one advancing stock for every decline on the NSE. On the daily chart, the index formed a Long Legged Doji candlestick pattern on Monday. This suggests indecisiveness in the market as index swung both ways.

The Nifty failed to sustain above 10,630 levels which is February’s congestion zone high and the 61.8 percent Fibonacci retracement of the whole fall that comes around 10,700 levels

The index faces resistance at 10,630-10,700 levels. In Nifty options, the 10,700 Call has the highest open interest, suggesting the market could head there but is likely to face resistance at that level. The 10,500 Put has the highest open interest followed by 10,400, suggesting market has support at these levels heading into expiry week.

If the index holds above 10,500 levels, it can rally towards 10,700 levels once it sustains above 10,630. On the downside, a break below 10,500 can see the index test 10,375-10,350 levels.

Here is a list of top five stocks which could give up to 13% return in the short term:

Thomas Cook (India): BUY | CMP: Rs 284 | Stop loss: Rs 270 | Target: Rs 320 | Return 12%

On the long-term charts, the stock has formed a rounding base between Rs 170 and Rs 255 odd levels over the last 30 months. After giving breakout last month, the stock hit an all-time high of Rs 292 levels and then corrected down to Rs 261 levels.

Since then the stock has been moving in a range between Rs 292 and Rs 261 levels. This is positive for the stock as it has consolidated after the breakout at higher levels.

MACD has given a positive crossover with its average above neutral level of zero suggesting a change of trend from the current sideways pattern to upside. Thus, the stock can be bought at current level and on dips to Rs 280 with a stop loss below Rs 270 for a target of Rs 320 levels.

Shriram Transport Finance: BUY | CMP: Rs 1589| Stop loss: Rs 1540 | Target: Rs 1720 | Return 8%

After a long-term consolidation between Rs 1300 and Rs 750 odd levels, the stock witnessed a breakout from the pattern to hit a high of Rs 1546 in the month of January.

Then price corrected down to its breakout level of Rs 1300 and seen a bounce back. The price has witnessed a rounding pattern formation over the three months and saw a breakout from the same at the start of this month.

Since then the stock price has been trading in a narrow range between Rs 1620-1550 odd levels to form bullish pole and flag pattern which is a continuation pattern.

The relative strength index (RSI) has given positive crossover with its average suggesting stock is likely to see a breakout on the upside. Thus, the stock can be bought at current level and on dips to Rs 1570 with a stop loss below Rs 1540 for a target of Rs 1720 levels.

Mahindra & Mahindra: BUY | CMP: Rs 824 | Stop loss: Rs 790 | Target: Rs 910 | Return 10%

Looking at the long-term monthly chart, the stock has seen a multiyear consolidation between Rs 750 and Rs 550 odd levels since 2014. In the month of February stock failed to give breakout after hitting high of Rs 803 and then corrected down to Rs 700 levels.

Since then the stock has rallied back to touching an all-time high of Rs 834 in yesterday’s session. Price has been forming higher top higher bottom over last sixteen suggesting uptrend is likely to continue.

The Relative strength index and Stochastic have given positive crossover with their respective averages on the daily chart. Thus, the stock can be bought at current level and on dips to Rs 815 with a stop loss below Rs 790 for a target of Rs 910 levels.

Uniply Industries: BUY | CMP: Rs 440| Stop loss: Rs 415 | Target: Rs 500 | Return 13%

The stock touched an all-time high of Rs 486 in the month February and then corrected down Rs 360 levels. Since then the stock has again bounced back to Rs 440 levels. The decline was on low volumes suggesting long positions holding onto the stock.

In last three trading stock has witnessed positive price action and high volumes particularly delivery volumes suggesting buying participation in the stock.

The daily ADX line indicator of trend strength currently at 26 levels is moving higher and above the neutral level suggesting current rally is likely to sustain. Thus, the stock can be bought at current level and on dips to Rs 430 with a stop loss below Rs 415 for a target of Rs 500 levels.

Zee Entertainment Enterprises: BUY | CMP: Rs 595 | Stop loss: Rs 570 | Target: Rs 660 | Return: 11%

The stock has seen a correction from its all-time high of Rs 619 touched in January this year to low of Rs 547 levels in March. Bounce back from lower levels faced resistance at 61.8 percent Fibonacci retracement level of the fall from Rs 619 to Rs 547 that comes around at Rs 591 levels.

Thus, the stock has seen consolidation between Rs 590 and Rs 547 levels over last eleven weeks and formed a base. Price has made higher highs and higher lows in last one month and yesterday managed to close above the resistance, suggesting stock likely to see the start of a fresh uptrend.

Thus, the stock can be bought at current level and on dips to Rs 585 with a stop loss below Rs 570 for a target of Rs 660 levels.