Buy NIIT Technologies, stock likely to test Rs 973: Mazhar Mohammad

The Nifty50 which closed above its crucial psychological level of 10300 last week registered gains of over 2 percent for the week ended April 6th.

Benchmark indices staged a strong pullback rally fuelled by firm global cues. Broader markets outperformed the Nifty Midcap and Smallcap indices rose over 2 percent, each last week.

Sectorally, all indices ended in the green led by metal and PSU banking stocks. The Nifty has corrected by about 11 percent from February peak 11172 and found support from 52-weeks EMA 9980.

The Nifty, in the last week, witnessed the continuation of the short-term pullback that had originated from sub-10,000 levels in the penultimate week. However, experts feel that it would be wise to use pullback rallies to short the index.

The pullback has done descent retracement of the previous fall and has now reached a crucial resistance zone i.e. 10300-10350. There are multiple parameters, lying over there, to restrict further upside.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

NIIT Technologies: BUY | Target: Rs 973 | Stop loss: Rs 867 | Return 7.7%

After registering a lifetime high of around Rs 1012 levels in turbulent market conditions in the month of March, this counter slipped into a corrective and consolidation phase before hitting a bottom at around Rs 820 levels.

Since then after a brief pause of 4 sessions on Friday, it appears to have resumed its uptrend. As the long-term trend is strong and the counter has made a new lifetime high recently, it should now retest those highs on the resumption of the rally.

Hence, traders should buy into this counter for an initial target of Rs 973 and a stop loss below Rs 867.

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