After making consistently lower low for ten trading sessions, Nifty opened this week with gap above its short downtrend channel.
On Wednesday session index open lower but post lunch rally erased some losses and formed hammer candle pattern. On daily chart index is trading in rising channel pattern by forming higher high – higher low pattern and we expect holding 9550 levels we may see next leg towards 9750-9800 zone.
On derivative hands 9700 call strike has maximum open interest, so this level should act as resistance and on downside maximum open interest shifted to 9600 from 9500 will act as strong support for this expiry.
For trading purpose, we expect markets to trade on positive note and any closing above 9710 will unfold fresh levels 9750-9800. On lower side Nifty has strong support near 9550-9530 any dip will be good buying opportunity.
Here is a list of 5 stocks which could give 13% return-
Hindustan Zinc: BUY | Target Rs 267| Stop Loss Rs 237 | Upside 8%
Indo Count Industries: BUY | Target Rs 200 | Stop Loss Rs 177| Upside 8%
Manpasand Beverages: BUY | Target Rs 950 | Stop Loss Rs 750 | Upside 13%
Ramkrishna Forgings: BUY | Target Rs 550 | Stop Loss Rs 460 | Upside 10%
Manappuram Finance: BUY | Target Rs 106| Stop Loss Rs 88| Upside 13%