As we head towards expiry, any close above 11600 level can take the index towards 11,700-12,000 level in the near-term.
The benchmark index is witnessing a positive momentum from the beginning of March, and yes, there were few down days as well, but the overall momentum remains fairly on the upside.
Record foreign institutional investor (FII) flows into the market is the key trigger for the elevated bullish sentiment. The momentum comes despite crude oil prices trading on the higher side in international markets.
FIIs are pouring more and more money in the stocks and are taking strong positions in the futures and options market.
The currency market also reflects good FII inflows as Indian rupee is trading around 68.88.
We expect Nifty to consolidate in the broader range of 11,600 on the upper side while 11,200 on the lower front.
The Nifty50 index surged 129 points to close at 11,483. As we head towards expiry, any close above 11,600 level can take the index towards 11,700-12,000 level in the near term.
Here is a list of top three stocks for trading with a short term horizon:
Asian Paints: Buy above: Rs 1,500| Target: Rs 1,540 | Stop loss: Rs 1,460
Asian Paints is a strong stock in the consumption space. Put Writing was seen at at-the-money (ATM) and out-of-money (OTM) strikes. Base put at ATM 1440 strike is higher than any call strike for the current series indicating expectation limited downside.
LIC Housing Finance: Buy above Rs 535| Target: Rs 548| Stop loss: Rs 522
LIC Housing Finance can gain after sellers were caught on the wrong foot which led to short coverings. The majority of the positions in the stock is on sell-side according to F&O data analysis.
Jubilant FoodWorks: Buy at Rs 1460| Target: Rs 1510| Stop loss: Rs 1420
Jubilant FoodWorks is gaining momentum from short sellers as well. On the charts, we expect a breakout of Triangle formation which could take the stock above Rs 1500 levels in the next few days.
(The author is Head of Research at CapitalAim.)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.