In a robust trading week, the Nifty soared nearly 1.40 percent from its previous week's closure and reclaimed the 17,600 level. The truncated-yet-eventful week marked in favour of the bulls. The Reserve Bank of India’s decision to not change the interest rates on April 6 provided buoyancy to the equity space, and that was reflected in the price action of the key indices.
From the technical aspect, it was a strong comeback for the Nifty as it surpassed the 200 simple moving average (SMA- 17,515) on a closing basis. But at the same time, one should not become complacent and rule out the possibility of a breather after a steep rally.
As far as levels are concerned, 17,500-17,400 is likely to cushion any short-term blip, while the sacrosanct support lies around the bullish gap of 17,200 in the comparable period.
On the flip side, 17,600-17,700 is likely to be seen as an immediate hurdle and if the index manages to go past it, it will trigger the next leg of rally towards 17,800 for the upcoming week.
We remain sanguine with the current momentum and will advocate traders to utilise the dips to add long positions in the index.
Here are two buy calls for the short term:
Indraprastha Gas: Buy | LTP: Rs 462.45 | Stop-Loss: Rs 444 | Target: Rs 492 | Return: 6 percent
IGL has seen a decisive spurt in the last two trading sessions, backed by robust volumes on the daily chart, signifying positive development in the counter.
Technically, the stock has witnessed a range breakout on the daily and weekly time frames, adding to the bullish quotient. The stock looks well versed to continue its upwards journey in the comparable period. Hence, we recommend buying IGL with a stop-loss of Rs 444 and a target of Rs 492.
Can Fin Homes: Buy | LTP: Rs 567.15 | Stop-Loss: Rs 538 | Target: Rs 594 | Return: 5 percent
Can Fin Homes saw a strong move in the previous week and surged above the cluster of its exponential moving averages on the daily chart. The stock recently saw some buying and emerged above the sloping trendline on the daily time frame, adding to the bullish quotient.
The primary indicators align with the trend, suggesting a continuation of the movement in a comparable period. Hence, we recommend buying the stock with a stop-loss of Rs 538 and a target of Rs 594.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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