Vikas Jain
The Nifty50 and the Bank Nifty tested the higher end of the range near 9,400 and 20,600 levels, respectively, on April 23.
The Nifty has filled the runaway gaps in the range of 8,900-8,950 levels and moved higher on the back of a sharp surge in the index pivotal and broader market's upmove.
Reliance Jio’s stake sale and strong results of HDFC Bank lead the current upmove while Infosys failed to cheer the Street despite in-line numbers.
The Nifty is up 8 percent, while midcap and smallcap indices are up 9 percent and 14 percent, respectively, from the last derivatives expiry till date.
Among sectors, pharma, energy and FMCG have gained 39 percent, 17 percent and 12 percent, respectively. PSU banks and realty are underperformers, down 2 percent from the last expiry till date.
With the derivatives expiry next week, we expect the market to be volatile, with rollover movement in individual sectors and stocks and the result reactions will be the key to watch.
On the higher side, 9,500 CE strike has the highest OI of 17.7 lakh shares while 9,000 PE strike remains a strong support and reversal point with OI of 35 lakh shares.
Here are three stock recommendations for the next three-four weeks:
The stock has made a reversal from its recent top and witnessed sharp selling with negative divergence on daily charts.
It could witness a sharp breakdown and expect to retrace 50 percent of its entire upmove and a 50-day average on the higher side would provide a lot of resistance.
The stock witnessed a sharp upmove from its 52-week low, retraced 50 percent of the entire upmove and has again started moving upwards.
On the downside, multiple supports exist in the range of Rs 665-675, protecting the downside from the current levels.
Tech Mahindra | Buy | LTP: Rs 522 | Target price: 580 | Stop loss: Rs 492 | Upside: 11 percent
The stock has taken support near its 34-quarter average at Rs 485 and is witnessing positive momentum from the lower range.
The key technical indicators RSI is trading above its average line and has reversed, turning upwards poised for a breakout from the current levels.
(The author is a Senior Research Analyst at Reliance Securities)
Disclaimer: 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.
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