Stock Picks of the Day: 3 stocks that could return 7-9% in 1-2 months

Markets showed immense strength and resilience during the week. The current upswing was seen despite a weakening rupee-dollar and persistent US-China trade war concerns.

The Nifty has once again formed a ‘Doji’ kind of pattern on the weekly chart, indicating signs of uncertainty. However, it has still managed to hold above it short term averages.

At the current juncture, the index is on the verge of a sloping trend line breakout on the daily chart. A close above 10,800 would confirm the same which would then lift the Nifty higher towards 10,930 levels.

The Bank Nifty is in the middle of forming a ‘Pennant’ pattern on the daily chart. A close above this sloping trend line of 26,700 would confirm the breakout. However, a crucial support on the downside is placed around 26,140 levels.

With midcaps and smallcaps continuing to remain under immense pressure, it would be prudent to stick to quality largecaps.