Nifty may face hurdle at 10,400; top 5 stocks with up to 5% return potential in short term

Nifty

Nifty opened higher but failed to hold gains and remained in a trading range of 86 points. The index has formed 'Spinning Top' candlestick pattern indicating lack of momentum on either side. Now Nifty has to close above 10,250 marks for further upside. The level 10,400 will work as immediate hurdle zone and support is seen around 10,130 mark.

Furthermore, RSI (14) failed to give positive crossover. We are expecting Index to consolidate within a range of 10,100-10,400 levels in near term.

Bank Nifty

Nifty Bank opened with positive bias but failed to hold gains and closed lower by 0.74 percent amid sell-off in PSU Stocks. It is consolidating around 78.6 percent Retracement levels on daily scale. Any significant move above 24,500 levels might take Nifty Bank higher till 24,800 and 25,100 levels. Strong support is seen around 23,900 levels.

Moreover, Oscillators are trading around oversold zone. We are expecting Index to consolidate within a range of 23900-24800 levels in near term.

Below are the top 5 stocks which can yield up to 5% return:

VA Tech Wabag | Rating: Buy | Target: Rs 523, stop loss: Rs 480 | Return: 5%

Kajaria Ceramics | Rating: Buy | Target: Rs 590, stop loss: Rs 555 | Return: 3%

BEML Limited | Rating: Buy | Target: Rs 1145, stop loss: Rs 1080 | Return: 3%

United Breweries | Rating: Sell | Target: Rs 989, stop loss: Rs 1040 | Return: 3%

Dr Reddy's Laboratories | Rating: Sell | Target: Rs 2060, stop loss: Rs 2190 | Return: 3%

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