Stock Picks of the Day: Top 3 buy positional ideas that could return 7-9%

It has been a splendid week for Indian equity markets index-wise. The Sensex hit a fresh lifetime high on Thursday while the Nifty, as well as Bank Nifty, are close to their respective lifetime peaks.

On the other hand, pain in the midcap and smallcap space is prolonging. The Nifty has broken out from the Cup and Handle pattern on the weekly chart. This indicates a continuation of its previous primary trend which was on the higher side.

A close above 10,930 has confirmed a breakout. If the same unfolds the way it should, then the Nifty is likely to rally another 300 points. This would help it break past its previous all-time highs.

The Bank Nifty too has broken out from a Pennant pattern on the weekly timeframe. This indicates that further upside is on the cards.

Immediate resistance is seen around 27,150 levels. A break above the resistance zone could lift the Bank Nifty higher towards its previous all-time peak of 27,661 levels.