By Rajesh Agarwal AUM Capital
Benchmarks ended the Monday’s trade on an optimistic note for a third straight session taking cues from their Asian counterparts. The market breadth was in favour of advances with 3 stocks advancing against two declining ones. Moreover, gains in Asian and European equities boosted sentiment. Ahead of Chinese President Xi Jinping’s speech on Tuesday, US President Donald Trump tweeted that China would remove trade barriers as that would be the “right thing to do”.
Investors will now focus on fourth-quarter earnings season, which will begin on Friday with Infosys.
Among sectoral indices, the Nifty FMCG index ended 1.13 percent up led by a rise in the shares of Marico and ITC.
Technical Outlook
Nifty
Nifty opened with flat to positive note tracking strong global cues and continued its up-move to close at 10379.35 up 47.75 points. It has formed Bullish Candles for three consecutive days. Index might face strong hurdle around 10430-10455 levels i.e. 100 and 50 SMA respectively. Furthermore, on hourly scale, Nifty is trading around 61.8 percent Retracement level i.e. around 10375 levels. Now Index has to sustain above this level for further upmove.
Bank Nifty
Nifty Bank has closed above its major moving average of 200 SMA which stands around 24885 levels. Index opened higher and continued its up-move amid strong rally in Axis Bank and selective PSU Banks. Near term hurdle seen around 25230 and 25420 levels i.e. 50 and 100 SMA.
Moreover, it is currently trading around 38.2 percent Retracement level on daily time frame. Momentum Oscillators like RSI is trading around 60 levels. On bear market, RSI use to take stiff hurdle around 60-65 levels.
Below are the top 5 stocks to buy which can give up to 7% return in the near term:
Dish TV India | Rating: Buy | Target: Rs 78, stop loss: Rs 70 | Return: 7%
Jet Airways | Rating: Buy | Target: Rs 644, stop loss: Rs 619 | Return: 2%
Bajaj Auto | Rating: Buy | Target: Rs 2825, stop loss: Rs 2730 | Return: 2%
NBCC (India) | Rating: Buy | Target: Rs 217, stop loss: Rs 205 | Return: 3%
Tech Mahindra | Rating: Sell | Target: Rs 602, stop loss: Rs 623 | Return: 2%
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