Recent market trends indicate Nifty and Bank Nifty displaying strength as they respect their 20-DMA, potentially leading to an upward movement. Nifty needs to surpass the 19,825 level to gain momentum, targeting the range of 19,950-20,000. Conversely, if it drops below 19,600, a decline to 19,300-18,888 may occur. Bank Nifty faces a supply zone between 45,800-46,200, while a break may trigger short-covering, propelling it to 46,500-47,000. Below 45,400, profit-booking might bring it to 44,500.
Notwithstanding the influence of Foreign Institutional Investors (FIIs), both small and large stocks show favorable performance in the market. Pravesh Gaur, a Senior Technical Analyst from Swastika Investment, recommends three stocks with potential short-term returns:
Sunflag Iron and Steel Company:
Buy, LTP Rs. 240.6, SL Rs. 220, Target Rs. 274. A 14% return potential. Bullish trend with symmetrical triangle breakout, strong volumes, and above key moving averages.
Elecon Engineering Company:
Buy, LTP Rs. 782.6, SL Rs. 725, Target Rs. 894. A 14% return potential. Strong bullish setup with triangle breakout, robust base at Rs. 710, supported by RSI and MACD indicators.
Buy, LTP Rs. 229, SL Rs. 210, Target Rs. 266. A 16% return potential. Classical bullish setup with a bullish flag pattern breakout, above important moving averages, and positive momentum indicators.