The Nifty50 managed to end positive and sustain the rebound from 200-Days Moving Average (DMA) on Tuesday for a second consecutive day in a row on the back of multiple fundamental and technical factors is a positive sign. It closed above its 10-DMA while BankNifty also rebounded from 24,000 levels.
The global factors were positive throughout last few days which added a positive sentiment to investors and traders. Better than ADP and non-farm employment change coupled with lower unemployment claims were few reasons that kept Bulls in charge in last few days.
Taking cues from the global markets and Asian equity markets also inched higher and was retracing back to its February levels.
Fundamentally, Nifty reacted majorly to positive industrial output data which came with a surprise of 0.80 percent at 7.5 percent as against expected at 6.7 – 6.8%. These are 2016 levels of IIP before DeMo was announced.
While the CPI data came at lower than expected which boosted further momentum to bulls. It came at much lower levels of 4.44 percent compared to 5.07 percent while it went to the high of 5.2 percent above levels. All this inculcated to market to regain the momentum.
Bank Nifty, especially PSU Banks which was a dragger for last 2 month losing almost 25 percent rebounded as some buying came in at lower levels while it is still under the dark clouds of PNB Scam which may also keep the pressure on other PSU Banks and markets overall.
The Nifty has successfully rebounded but it will need to close above 10600 to make sure the rally is stretched while a failure to sustain the 10340 mark will certainly bring bears back into the game to position size on the bearish momentum established in short term.
The range may continue while any sustained momentum for bulls will be above 10600 while below that we may see range play continue and would advise selling on the rise towards these levels.
Here is a list of top four stocks which could give up to 12% return in the short term:
NBCC: BUY| Target Rs220| Stop Loss Rs190| Return 12%
The stock rebounded from lower levels taking the support at the long-term levels of higher timeframe. A breach of short-term MA on closing basis and higher than average volume with a bullish close suggest a short-term uptrend is established for higher levels of 220.
Apollo Hospital Ltd: SELL| Target Rs1005| Stop Loss Rs1150| Return 8%
The stock has breached crucial supports on the daily chart with prices closing below its short-term MA and well as long-term MA on a continuous basis indicating the further weakness. We expect weakness to continue towards the lower level of 1005.
Apollo Tyre Ltd: BUY| Target Rs290| Stop Loss Rs252| Return 10%
The stock is in broader consolidation range of 250 – 270 on higher side while overall pattern suggests a bullish structure with momentum indicators pointing the internal strength to be positive. We expect it to move higher with next levels to be around 290.
Bharti Infratel Ltd: BUY| Target Rs380| Stop Loss Rs335| Return 9%
Bharti Infratel is coming out of a consolidation from lower levels while oscillators show positive divergence with possible upside in coming days. We expect this bottom to sustain for short-term and price to move toward 380.
Disclaimer: The author is CEO, Epic Research for your consideration. The views and investment tips expressed by investment experts on moneycontrol.com are his own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.moneycontrol