Close above 10,440 to signal further upmove for Nifty; top 5 stocks to buy in near term

Nifty has formed 'Dragon Fly' candlestick pattern around key hurdle zone i.e. 50 and 100 SMA which coincides at 10,440 levels and 38.20 percent Retracement levels (Drawn from high of 11,171.55 to low of 9,951.90) on daily time frame. This pattern is a Bearish Reversal Pattern. Now, the Index has to close above 10,440 levels for further upmove.

If it sustains below or fails to cross this mark, Nifty may witness a correction till 10,340 and 10,270 zone. Furthermore, RSI (14) has given Negative crossover.

Bank Nifty

Nifty Bank has formed 'Hanging Man' pattern around 50 SMA and 100 SMA on daily time frame. This pattern occurs mainly at the top of uptrends and can act as a warning of a potential reversal downward. It is important to emphasize that the Hanging Man pattern is a warning of potential price change, not a signal to go short. Near term hurdle seen around 25420 levels i.e. 100 SMA. Moreover, it is currently trading around 38.2 percent Retracement level on daily time frame.

Below are the top 5 stocks which acn give up to 5% return in the near term:

Dabur India | Rating: Buy | Target: Rs 355, stop loss: Rs 336 | Return: 3%

Sun Pharmaceutical Industries | Rating: Buy | Target: Rs 536, stop loss: Rs 508 | Return: 3%

GNA Axles | Rating: Buy | Target: Rs 543, stop loss: Rs 487 | Return: 5%

TVS Electronics | Rating: Buy | Target: Rs 514, stop loss: Rs 465 | Return: 5%

Pidilite Industries | Rating: Sell | Target: Rs 955, stop loss: Rs 1010 | Return: 3%

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