"Nifty has to cross 10,555 levels decisively for further upmove. Sustenance trade above 10,555 marks may add momentum on upside till 10,650-10,670 levels," says RajeshAgarwal of AUM Capital.
Rajesh Agarwal
Benchmark indices closed higher for the ninth straight session on Tuesday as investor turned their focus to corporate earnings from geopolitical tension. Among sectoral indices, the Nifty Realty index was over 1 percent higher led by a rise in the shares of Godrej Properties and Indiabulls Real Estate. That apart, investor sentiments were positive during the day following the forecast of a normal monsoon this year by the India Meteorological Department (IMD).
Asia stocks rose modestly on Tuesday following data showing China's economy grew a little faster than expected in the first quarter.
Technical Outlook
Nifty
Nifty closed higher for the ninth straight session on Tuesday. It has formed 'Doji' candlestick pattern around 50 percent Retracement level indicating indecisiveness at higher levels. Now it has to cross 10,555 levels decisively for further upmove. Sustenance trade above 10,555 marks may add momentum on upside till 10,650-10,670 levels.
Furthermore, RSI (14) is trading around 60-65 levels. If RSI fails to trade above these zone, Index may witness a correction till 10,450 marks.
Bank Nifty
Nifty Bank is consolidating within its two major moving averages of 200 and 100 SMA for six consecutive days. It has formed 'Spinning Top' candlestick pattern signifying indecisiveness around hurdle zone. Now Nifty Bank has to cross 25,420 marks decisively for further up move. If Index fails to cross this level and sustains below it, Nifty Bank may correct till 24,700 zones.
Furthermore, on hourly scale, Nifty Bank is trading around overbought zone with negative divergence on RSI.
Below are the top 5 stocks which can give up to 7% return in the near term:
NCC: Buy | Target: Rs 143 | Stop loss: Rs 129 | Return: 7%
HDFC Bank: Buy | Target: Rs 1983 | Stop loss: Rs 1920 | Return: 2%
Power Grid Corporation of India: Buy | Target: Rs 213 | Stop loss: Rs 199 | Return: 4%
Lupin Limited: Buy | Target: Rs 818 | Stop loss: Rs 795 | Return: 2%
BEML: Sell | Target: Rs 1101 | Stop loss: Rs 1155 | Return: 2%
Disclaimer: The author is the Head of Research at AUM Capital. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.