Strong support for Nifty at 11,171; 5 top stocks which can yield up to 4% return

The index opened flat and continued to move lower for second consecutive days. It is currently trading around its major moving average of 200 SMA i.e. 10,130 levels. Any significant breach below this level may drag Index further lower till 10,000 mark i.e. 78.60 percent Retracement level (Drawn from low of 9687 to high of 11,171) on daily scale which might work as strong support zone.

Further more, RSI (14) is trading around oversold zone with positive divergence on hourly scale.

Bank Nifty

The session on Wednesday was highly disappointing as Nifty Bank plunged to a fresh 2018 lows and trading below its major moving average of 200 SMA for two consecutive days. Index underperformed benchmarks amid sharp sell-off in PSU Banks. Furthermore, it has closed below lower band of Bollinger Band on daily scale suggesting bounce back from lower levels cannot be ruled out. It might find support around 23900 levels.

Here are the 5 stocks which can give up to 4% return today:

HCL Technologies | Rating: Buy | Target: Rs 968, stop loss: Rs 934 | Return: 2%

Tata Motors | Rating: Buy | Target: Rs 358, stop loss: Rs 340 | Return: 3%

Motherson Sumi Systems | Rating: Buy | Target: Rs 320, stop loss: Rs 300 | Return: 4%

Sun TV Network | Rating: Sell | Target: Rs 865, stop loss: Rs 912 | Return: 3%

Divi's Laboratories | Rating: Sell | Target: Rs 960, stop loss: Rs 1016 | Return: 3%

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