The Nifty continued its upward journey for the second day in the row on the back of strong global cues on March 6. At close, the benchmark was up by 0.67 percent or 117 points at 17,711. From previous week's swing low of 17,255, it has witnessed a rally of more than 500 points in a span of four trading sessions.
In the process, the Nifty reversed its recent short-term downtrend and also closed above the 200-day EMA (exponential moving average) which is placed at 17,582. It also managed to close above its 11 and 20-day EMA of 17,574 and 17,650.
The 14-day RSI (relative strength index) too has jumped sharply and moved above its nine-day EMA, indicating strength in the rally. We could therefore see more upsides in the near term.
Among the Nifty options, Puts are being written at 17,500-17,600 levels. FIIs long to short ratio in the Index Future is placed at an oversold levels of 0.30 which in-turn indicates there is a higher probability of short covering by them from hereon.
Therefore, on the downside, 17,500 could now be considered as an immediate support for the Nifty and one should remain bullish with stop-loss of 17,500 levels.
On the upside, 17,800 could act as an immediate resistance for Nifty. We may see upside momentum once Nifty manages to surpass 17,800 convincingly. Above 17,800, Nifty could move towards next resistance level of 17,924 and 18,135.
Broad market indices like Nifty Midcap and Smallcap have outperformed this month till now with gains of 2.80 percent and 3.10 percent. Considering the positive momentum in the market, these indices could continue their outperformance and thereby offering some opportunities for short-term traders.
Here are three recommendations for the next 3-4 weeks:
TD Power Systems: Buy | LTP: Rs 152.5 | Stop-Loss: Rs 140 | Target: Rs 165-171 | Return: 12 percent
The stock price has broken out from the symmetrical triangle on the daily chart with higher volumes. Primary and intermediate trend of the stock is positive as stock price is trading above its medium and long term important moving averages.
Plus DI (directional indicator) is trading above minus DI while ADX (average directional index) line is placed above 25, indicating momentum in the current uptrend. Power as a sector is looking strong on the short-term charts.
Religare Enterprises: Buy | LTP: Rs 156 | Stop-Loss: Rs 145 | Target: Rs 169-176 | Return: 13 percent
The stock price has broken out on the daily chart with higher volumes to close at highest level since February 24. Stock price is on the verge of breaking out from the downward sloping trendline, adjoining the highs of January 4, 2023 and February 23, 2023.
Short term trend of the stock turned positive as stock price has closed above its 11 and 20-day EMA (exponential moving average). Momentum Oscillators - RSI (relative strength index - 11) and MFI (money flow index - 10) is sloping upwards and placed above 60 on the daily chart, indicating strength in the stock.
Indraprastha Gas: Buy | LTP: Rs 445 | Stop-Loss: Rs 425 | Target: Rs 466-481 | Return: 8 percent
The stock price has broken out on the daily chart with higher volumes to close at highest level since January 2022. Stock price has broken out on the weekly chart from the downward sloping trendline, adjoining the weekly highs of September 17, 2021, December 2, 2022 and December 23, 2022.
The stock price has been forming bullish higher top higher bottom on the weekly chart. Momentum indicators and oscillators are showing strength in the stock.
Disclaimer: The views and investment tips expressed by investment 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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