Stock Picks Podcast on June 08, 2018: 3 stocks that could return 7-11%

The Nifty surged ahead in the past two trading sessions, reversing weakness that was seen earlier in the week. The sentiment got a fillip after the Monetary Policy Committee (MPC) retained its neutral policy stance, raising hopes that there would be no more rate hikes in the near future.

The index formed a robust bullish candlestick pattern on the daily chart for the second consecutive day. This move has provoked it to breakout from a larger Symmetrical Triangle pattern on the daily chart. At present, there are no signs of a reversal on the charts. However, there are two important resistance points that the Nifty has to surpass before we see a significant confirmation of the breakout:

1) A close above the 10,820-10,830 zone, and

2) A breach past the Karnataka election verdict day high of 10,930 levels.

A break above the mentioned resistance zone will soon lead the Nifty towards its all-time high. Weight of the evidence still indicates that its bullish stance continues to remain intact.