On the weekly chart, Nifty has formed a bearish candle with a long 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 if Nifty crosses and sustains above 11,850 then it would witness buying that would lead to a higher target towards 11,970-12,100.
However, if the index breaks below 11,600 then it would witness selling that would take the index towards 11,500-11,430.
Nifty is trading below its 20-day SMA that is an important short-term moving average, indicating negative bias in the short term.
Nifty remains in an uptrend in the medium term, so buying on dips continues to be our preferred strategy.
The weekly strength indicator RSI and momentum oscillator Stochastic have both turned negative and are below their respective reference lines indicating negative bias in the short term.
Here are three stocks that could give 4-9 percent return in the next 3-4 weeks:
NMDC: Buy| LTP: 110.65| Buying range:Rs 109-106| Target: Rs 113-117| Stop loss: Rs 103| Upside: 5-9 percent
On the weekly chart, the stock price has decisively broken out from its downsloping trendline levels of Rs 106-107 on a closing basis and is sustaining above the same.
This breakout is accompanied by an increase in volumes that supports the bullish sentiments ahead. RSI and Stochastic are in a positive territory that supports upside momentum to continue in the near term.
The stock price is sustaining well above its 20, 50 and 100-day SMAs that supports bullish sentiments ahead.
CONCOR: Buy| LTP: Rs 554.60| Buying range: Rs 554-546| Target: Rs 571-577| Stop loss: Rs 537| Upside: 4-5 percent
On weekly and daily charts, the stock price has decisively broken out from its multiple resistance zone of Rs 543-540 on a closing basis and is sustaining above the same.
This breakout is accompanied by an increase in volumes that supports bullish sentiments ahead. RSI and Stochastic are in positive territory that supports upside momentum to continue in the near term.
The stock price is sustaining well above its 20, 50 and 100-day SMAs that supports bullish sentiments ahead.
ICICI Bank: Buy| LTP: Rs 431| Buying range: 431-426| Target: Rs 446-451| Stop loss: Rs 418| Upside: 4-5 percent
On the daily chart, the stock price has decisively broken out from its consolidation range of Rs 430-410 on a closing basis and is sustaining above the same.
This breakout is accompanied by an increase in volumes that supports bullish sentiments ahead. RSI and Stochastic are in positive territory that supports upside momentum to continue in the near term.
The stock price is sustaining well above its 20, 50 and 100-day SMAs that supports bullish sentiments ahead.
The author is Head Technical & Derivatives Research, Axis Securities.
Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his 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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