Nifty likely to trade between 10030-10170; top 5 stocks which can give up to 3% return in short term

By Rajesh Agarwal

AUM Capital

Benchmark indices closed higher on Tuesday, breaking a five-day losing streak led by IT and healthcare stocks. Gains were capped as banking stocks declined after CBI filed a charge sheet against a slew of former senior officials of Canara Bank. Moreover, the US Federal Reserve is expected to raise interest rates on Wednesday with new chairman Jerome Powell giving his first press conference.

In the global markets, Asian shares fell on Tuesday as investors dumped high-flying US technology shares on fears of stiffer regulation as Facebook came

under fire following reports it allowed improper access to user data.

Technical Outlook

Nifty

Nifty opened with gap-down amid weak global cues but recovered from day's low and closed with marginal gains of 30 points. It has formed 'Piercing Line' candlestick pattern on daily scale indicating short term trend reversal. Nifty took hurdle around 10165 levels i.e. 200 SMA. Now it has to cross this level decisively for further upside.

Strong support zone is seen around 10030 levels. We are expecting Nifty to trade within a range of 10030-10170 levels ahead of FOMC Meeting due later on Wednesday.

Nifty Bank

The index has formed 'Inverted Hammer' candlestick pattern around support of 24000 levels indicating a short term reversal in trend. Till it holds 24000 levels decisively, pullback from current levels cannot be ruled out. Strong support seen around 23800 levels i.e. 38.2 percent Retracement levels. On hourly chart, Oscillators like RSI & MACD has formed positive divergence & rising from oversold zone which is a bullish sign. We are expecting Index to consolidate within a range of 24000-25100 levels.

Here are the top 5 stocks which can give up to 3 % return in the near term:

NIIT Tech | Rating: Buy | Target: Rs 938, stop loss: Rs 900 | Return: 2%

BEML Limited | Rating: Buy | Target: Rs 1095, stop loss: Rs 1010 | Return: 3%

Tata Motors | Rating: Buy | Target: Rs 350, stop loss: Rs 330 | Return: 3%

CESC | Rating: Buy | Target: Rs 914, stop loss: Rs 890 | Return: 2%

IRB Infrastructure Developers | Rating: Sell | Target: Rs 209, stop loss: Rs 223 | Return: 3%

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