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
Raymond Ltd: BUY | Target: Rs 1097 | Stop loss: Rs 947| Return 11%
In the recent correction, this counter has taken support around 200-days moving average (DMA) as it slipped into a multi-week consolidation phase.
Now, inside this consolidation phase, it has formed a double bottom around Rs 890 levels on the line chart and it appears that the stock has embarked on an uptrend after consolidation breakout.
Hence, sustaining above Rs 950 levels, this counter can be expected to hit a target of Rs 1097 levels in the near term. Hence, positional traders are advised to go long on the stock for the said target with a stop loss below Rs 947.
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