Ukraine-Russia war: 5 contra bets that can give up to 14% returns

Coal India, GNFC, Cholamandalam, Fine Organic and Hitachi Energy can easily provide up to 14 per cent upside, indicate charts.

The conflict between Ukraine and Russia took a scary turn, on Sunday, when the Russian President Vladimir Putin positioned nuclear deterrents on high alert. This drastic step was result of continued pressure from western regime to repel Russians from invading Ukraine, indicated reports. The fourth day of the war between Russia and Ukraine comprehends European and US countries mounting pressure on de-escalation.

The equity markets this morning started trade on a dismal note, and the benchmark indices the BSE Sensex and the NSE Nifty were down over 1.5 per cent each at the lows of the day. However, the markets have staged a smart recovery in late morning deals.

Given the fragile geo-politicial conditions, one needs to be extremely careful while dealing with stocks. Based on the technical charts, below are few stocks picks that can be good contra-bets in the short-term.
 

Coal India Ltd (COALINDIA)
Likely target: Rs 184
Upside potential: 11%

This is one of the stock which has not dropped below its 200-day moving average support (DMA) in the recent geopolitical sell-off. In addition, the stock scaled 50-DMA and 100-DMA forming a minor “Golden Cross”, suggesting of a positive momentum ahead. The Rs 154 and Rs 153 are both the 50-DMA and 100-DMA respectively. The bullish bias can help the stock head towards Rs 184, its immediate hurdle mark, according to the daily chart. CLICK HERE FOR THE CHART

 
Gujarat Narmada Valley Fertilizers and Chemicals Ltd (GNFC)
Likely target: Rs 625
Upside potential: 14%

The medium-term outlook easily exhibits a rally of 10-15 per cent in upcoming trading sessions. This is on account of the two “Golden Cross” formed on the weekly chart. One is 50-WMA and 200-WMA; the other is 50-WMA and 100-WMA. The significance of the same displays a bullish bias with strength and momentum staying in line with the price action. The Rs 525 and Rs 500 remain as the support levels, while the stock signals a rally in the direction of Rs 625 and Rs 655. CLICK HERE FOR THE CHART

 
Fine Organic Industries Ltd (FINEORG)
Likely target: Rs 5,000
Upside potential: 12%

The shares of Fine Organic Industries Ltd have conclusively overcome the selling pressure above Rs 4,000 levels. This up move is well supported by robust volumes, suggesting that market participants are favor of the upside.  The present candlestick pattern with a firm gap-up close and resistance has become a support, and now hints of rally towards Rs 5,000-mark. The immediate support for the stock is at Rs 4,200 and Rs 4,000 levels, which needs to be considered on a closing basis.  CLICK HERE FOR THE CHART
 

Cholamandalam Investment and Finance Company Ltd (CHOLAFIN)
Likely target: Rs 750
Upside potential: 10%

While there are negative divergences of the Relative Strength Index (RSI), the price momentum does not let selling pressure to dominate. As per the daily chart, as long as the stock defends the support of Rs 640, where the stock has seen simultaneous accumulation in recent times, the bigger outlook remains bullish. The stock seems headed towards Rs 750, as per the weekly and intraday chart setups. CLICK HERE FOR THE CHART
 
Hitachi Energy India Ltd (POWERINDIA)
Likely target: Rs 3,600
Upside potential:  9%

The shares are only Rs 150 away from hitting a new historic high. The instrument has “Higher High, Higher Low” formation, according to the weekly chart, which it clearly honoured. The immediate support lies at Rs 3,000 and Rs 2,700 levels, better to consider on the closing basis. As per the overall trend the stock seems headed towards Rs 3,600 level. CLICK HERE FOR THE CHART