Nifty likely to witness short-term reversal; top 5 stocks which can return up to 3% in near term

The Nifty witnessed a volatile trading session on Thursday. It opened with positive note but failed to hold its opening gains and corrected towards 10,146 levels i.e. around its major moving average of 200 SMA. However, it recovered from day's low and closed with gains of 88.45 points.

The index has formed 'Hammer' candlestick pattern indicating a short term reversal. Furthermore, on hourly scale, oscillators like RSI & MACD has given positive crossover which is a bullish sign.

Nifty Bank

The index has formed a kind of 'Hammer' candlestick pattern around 78.6 percent Retracement level on daily scale. It recovered from day's low of 24,048 marks and closed with gains of 343.55 points. It is heading towards 24,770 levels i.e. 200 SMA which might work as strong hurdle zone.

Nifty Bank managed to close above lower band of Bollinger Band (20, 2) indicating bounce back from current level which cannot be ruled out. Furthermore, RSI (14) is on verge of positive crossover.

Below are the 5 stocks which can be good trades today with up to 3 % return potential

Hero MotoCorp | Rating: Buy | Target: Rs 3635, stop loss: Rs 3545 | Return: 1%

Balkrishna Industries | Rating: Buy | Target: Rs 1060, stop loss: Rs 990 | Return: 3%

Dabur India | Rating: Buy | Target: Rs 334, stop loss: Rs 318 | Return: 2%

Asian Paints | Rating: Buy | Target: Rs 1150, stop loss: Rs 1108 | Return: 2%

Tata Consultancy Services | Rating: Sell | Target: Rs 2950, stop loss: Rs 3045 | Return: 2%

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