Hot Stocks | Tata Motors, JSW Steel, Hindalco to give decent returns in the short term

This has been a disastrous week for the domestic market. The benchmarks have been falling for the last five trading sessions.

Nifty started the week on a pessimistic note, following negative global cues. Nifty this week has been trading with a change of 3.70 percent whereas the Nifty Bank index has performed relatively better as it has lost only 2.44 percent in the week.

We have been constantly reiterating our view that the recent pullbacks were just an opportunity to go short or exit longs in the markets.

In line with that view, Nifty not only corrected sharply but breached the previous swing low of 11,615.

Now, at this juncture, the index has formed a bullish hammer pattern on the daily chart.

Further, the put-call ratio has reached near 1, which indicates the possibility of a bounce.

Earlier, when Nifty rallied from 11,615 to 11,200 the put-call ratio was 0.96. Also, the numbers of oversold stocks in the Nifty50 basket were significant.
We are of the opinion that there is a possibility of a relief rally in the market.

However, we continue to remain bearish for the medium-term with much lower targets for Nifty.