Benchmark indices declined on Thursday amid mixed sentiment in global equities after the US Federal Reserve raised interest rates and maintained its view for three hikes this year.
Among sectoral indices, the Nifty PSU Bank index was trading over 2 percent lower led by a fall in the shares of State Bank of India and Syndicate Bank.
The Nifty Realty index, too, slipped nearly 1 percent lower due to a fall in shares of Indiabulls Real Estate and Oberoi Realty. Globally, the US dollar was on the defensive on Thursday after posting its largest loss in two months when the Fed turned out to be less hawkish than anticipated. Worries about a potential trade war between China and the United States kept gains in Asian shares in check.
Nifty opened with positive note but failed to hold higher levels and closed lower at 10,114.75 down 40.50 points. Index has formed ‘Inverted Hammer’
candlestick pattern around its 200 SMA of 10,171 on daily scale. Till it holds 10,000 mark decisively, bounce back from lower levels cannot be ruled out.
Nifty might revert back to its short term moving average of 20EMA i.e. around 10,325 which might work as immediate hurdle zone. Immediate hurdle seen around 10,210.
Nifty Bank has formed multiple bullish reversal candlestick patterns around support of 24,000 levels. Till it holds 24,000 levels decisively, pullback from current levels cannot be ruled out. Strong support seen around 23,800 levels i.e. 38.2 percent Retracement levels.
On hourly chart, Oscillators like RSI & MACD has formed positive divergence and rising from oversold zone which is a bullish sign. We are expecting Index to consolidate within a range of 24,000-25,000 levels in near term.
Here are the top 5 stocks which can give up to 5% returns in the short term:
Apollo Hospitals Enterprise | Rating: Buy | Target: Rs 1049, stop loss: Rs 998 | Return: 2%
State Bank of India | Rating: Buy | Target: Rs 253, stop loss: Rs 233 | Return: 5%
Oil India Limited | Rating: Buy | Target: Rs 352, stop loss: Rs 333 | Return: 3%
CESC Limited | Rating: Buy | Target: Rs 910, stop loss: Rs 860 | Return: 3%
Maruti Suzuki India | Rating: Sell | Target: Rs 8550, stop loss: Rs 8830 | Return: 2%
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