The Nifty ended marginally higher on the first day of the new fiscal year after mild volatile trade on April 3. At close, the index was up 38 points at 17,398. Volumes on the NSE were on the lower side. Broad market indices rose more than the Nifty as fund activity remained low. Advance decline ratio was sharply positive at 3.28:1.
The Nifty is marching towards the next resistance zone of 17,475-17,550, which is derived from the 50 and 200-day EMA (exponential moving average). By surpassing previous swing high of 17,207, the Nifty formed a higher top and higher bottom on the shorter time frame.
However, on the medium-term time frame, lower tops and lower bottoms are still intact, which indicates limited upside for the Indian benchmark indices. For the short term, a level of 17,200 could offer a support in the Nifty.
From next week, the results season will kick in and therefore we expect the market to turn stock-specific in the current month.
Here are three buy calls for short term:
Union Bank of India: Buy | LTP: Rs 67.75 | Stop-Loss: Rs 63.90 | Targets: Rs 70.90-73 | Return: 7.5 percent
On week ended March 31, 2023, stock formed Bullish Engulfing pattern on the weekly charts. The stock found support on its 200-day EMA couple of sessions back and turned north.
PSU bank Index has also found support on its 200-day EMA recently. Banking sector has started outperforming after healthy correction.
Kirloskar Oil Engines: Buy | LTP: Rs 395 | Stop-Loss: Rs 358 | Target: Rs 434 | Return: 10 percent
Symmetrical Triangle Breakout was seen on the daily chart. Price breakout is accompanied with rising volumes.
Primary trend of the stock has been bullish, as stock is holding above long-term moving averages. Indicators and oscillators have turned bullish on the daily and weekly charts. The stock is on the verge of registering new all-time high.
Zensar Technologies: Buy | LTP: Rs 276 | Stop-Loss: Rs 255 | Target: Rs 302 | Return: 9 percent
Flag Pattern Breakout was seen on the daily chart. Stock price has witnessed healthy correction after sharp upswing. IT Sector has also reached oversold zone on short term charts.
DMI (directional movement index) indicator has turned bullish on the short term charts. RSI (relative strength index) has given positive crossover on the daily chart. Stock is placed above its 50, 100 and 200-DMA, which indicates bullish trend positionally.
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