Stock Picks of the Day: Top 3 trading ideas which could return 5-12%

The Indian equity market traded volatile in the week gone by on trade war and rising crude oil price concerns, which kept the market breath weak.

The Nifty registered a positive performance on a weekly basis, closing marginal above last week’s close of 10,817. The index slipped below the 10,750 mark on Thursday but saw a swift rebound in Friday’s trading session. It ended Friday at 10,821 levels, a gain of only 0.04 percent week-on-week.

After recouping losses from Thursday's close, the index formed a bullish engulfing pattern on its daily price chart. No significant formation was made on the weekly charts, indicating a positive trajectory among market participants. On the weekly price chart, the relative strength index stood at 61, making a negative divergence marginally. The moving average convergence divergence (MACD) continued to trade with a bullish bias above its signal line.

This week, given the June F&O expiry and negative global triggers on trade tariffs, the index is likely to trade rangebound as it continues to face resistance at 10,895 levels on a weekly basis. With market breath continuing to favour a bearish regime, traders are advised to remain extremely selective on fresh position and adopt a sell on rally approach till the index surpasses 10,895 level decisively.