Hot Stocks | Avenue Supermarts can give up to 13% upside in the short-term
Episode 2348, Mar 26, 2020, 01:30 AM
Nifty reversed from its new 46-months low of 7,511 on the back of recovery across the globe and also due to short-covering ahead of F&O expiry.
On March 25, the Indian benchmark index witnessed sharp short-covering majorly due to an extremely oversold oscillator and hopes of an economic stimulus package to soften the blow from the lockdown.
After a very long time, the breadth of the market remained in the favour of bulls; for every loser, there were two gainers.
India VIX seems to have temporarily topped out. If it sustains below 70, we will start seeing huge premium decay in Nifty and Bank Nifty and that will confirm the short-term bottom for the market.
Banking Index formed a bullish engulfing candlestick on March 25 which was well-supported with extremely oversold oscillator RSI (14) on the daily timeframe.
This short-term bullish structure can help Bank Nifty to stretch its pullback towards 21,000-mark. One should avoid aggressive buying as most markets in the world are in a bear grip.