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Last Updated : Apr 01, 2019 01:12 PM IST | Source: Moneycontrol.com

'Nifty expected to trade between 11,450 and 11,750 with positive bias'

Nifty is trading above 20, 50 and 100-day SMA which are important short term moving averages, indicating positive bias in the short term.

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Rajesh Palviya

Nifty started the previous week with a downward gap, however, buying momentum throughout the week led the index to close on a strong note. Nifty closed at 11,624 with a gain of 167 points on a weekly basis.

On the weekly chart, Nifty formed a bullish candle with a lower shadow indicating buying at lower levels. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 11,650 levels it would witness buying which would lead the index towards 11,700-11,750 levels.

However, if the index breaks below 11,550 level it would witness profit booking which would take the index towards 11,500-11,450 levels. Nifty is trading above 20, 50 and 100-day SMA which are important short term moving averages, indicating positive bias in the short term.

Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 11,750-11,450 with a positive bias.

The weekly strength indicator RSI and momentum oscillator Stochastic both are moving upwards and are above their respective reference lines.

Here are the top stock trading ideas which can give good returns in the near term:

BEML: CMP: Rs 1012 | Buying range: Rs 1000-980 | Stop loss: Rs 950 | Target: Rs 1040-1070 | Return: 5-8%

On the weekly chart, the stock has formed an “Inverse Head & Shoulder” pattern and has given a breakout on the closing basis. This breakout is accompanied with an increase in volumes which supports bullish sentiments ahead.

The weekly, as well as daily strength indicator RSI and the momentum indicator Stochastic both, are in positive territory which supports upside momentum to continue in near term. The stock price is sustaining well above its 20, 50 and 100 day SMA which supports bullish sentiments ahead.

Varun Beverages: CMP: Rs 869.85 | Buying range: Rs 865-850 | Stop loss: Rs 843 | Target: Rs 891 905 | Return: 4-6%

On the weekly chart, the stock price has decisively broken out from its multiple resistance zone of Rs 850-845 levels on a closing basis and is sustaining above the same.

The weekly, as well as daily strength indicator RSI and the momentum indicator Stochastic both, are in positive territory which supports upside momentum to continue in near term. The stock price is sustaining well above its 20, 50 and 100 day SMA which supports bullish sentiments ahead.

ACC: CMP: Rs 1668.05 | Buying range: Rs 1660-1645 | Stop loss: Rs 1620 | Target: Rs 1717-1730 | Return: 4-5%

On the daily chart, the stock price has decisively broken out from its multiple resistance zone of Rs 1626-1620 levels on a closing basis and sustaining above the same.

The weekly, as well as daily strength indicator RSI and the momentum indicator Stochastic both, are in positive territory which supports upside momentum to continue in near term. The stock price is sustaining well above its 20, 50 and 100 day SMA which supports bullish sentiments ahead.

Jindal Steel & Power: CMP: Rs 179.85 | Buying range: Rs 179-177 | Stop loss: Rs 173 | Target: Rs 185-188 | Return: 3-6%

On the daily chart stock price has decisively broken out from its multiple resistance zone of Rs 174-172 levels on a closing basis and sustaining above the same.

The weekly, as well as daily strength indicator RSI and the momentum indicator Stochastic both, are in positive territory which supports upside momentum to continue in near term. The stock price is sustaining well above its 20, 50 and 100 day SMA which supports bullish sentiments ahead.

The author is Head Technical & Derivatives Analyst at Axis Securities Ltd.

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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First Published on Apr 1, 2019 01:12 pm
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