Nifty may face hurdle around 10175; top 5 stocks which can gain up to 5% in the short term

AUM Capital

Benchmark indices closed positive after reports suggested that the United States and China have quietly started negotiations to improve US access to Chinese markets, thereby easing fears of a trade war between the two economic giants.

In the week ahead, domestic investors will look forward to the fiscal deficit data to be released on Wednesday. Also, the expiry of the current month futures and options contracts are due on Wednesday and positions will be rolled over to next month.

Among sectoral indices, the Nifty PSU Bank index ended 4.94 percent higher led by an over 10 percent rise in the shares of Canara Bank.

Rajesh Agarwal

Aum Capital

• Nifty likely to bounce back as long as 9900 holds; top 5 stocks which can gain up to 6% in near term

• Nifty likely to bounce back as long as Mount 10K holds; top 5 stocks which can give up to 5% return

• Nifty likely to face hurdle at 10,325; top 5 stocks which can give up to 6% return

Technical Outlook

Nifty

Nifty witnessed sharp rebounds from Friday's low of 9951 levels and closed higher at 10130.65 up 132.60 points. It has formed 'Evening Star' candlestick pattern indicating a short term trend reversal. It might face hurdle around 10175 mark i.e. 200 SMA. Any decisive break above this level may add momentum on upside till 10260-10300 levels. Furthermore, RSI has given a positive crossover on daily scale.

Bank Nifty

Nifty Bank rebounds sharply after taking support around lower band of Falling Channel. It has formed a 'Bullish' candle on daily scale indicating a short term bounce back. It might face strong hurdle around 24550-24600 levels i.e. Downward sloping trendline. Now it has to cross 24600 levels decisively for further upside.

Moreover, momentum oscillators like RSI & MACD are on verge of breakout which is a bullish set-up.

Here are the top 5 stocks which can give up to % gain in the short term:

ICICI Bank | Rating: Buy | Target: Rs 292, stop loss: Rs 272 | Return: 4%

JK Tyre & Industries | Rating: Buy | Target: Rs 157, stop loss: Rs 143 | Return: 5%

BEML | Rating: Buy | Target: Rs 1090, stop loss: Rs 1028 | Return: 3%

InterGlobe Aviation | Rating: Buy | Target: Rs 1320, stop loss: Rs 1250 | Return: 3%

Escorts | Rating: Buy | Target: Rs 819, stop loss: Rs 795 | Return: 1%