Hot Stocks | Here's why Shree Cement, ACC can give up to 12% return in short-term

Nifty started gap-up and remained in the green throughout the day on May 13. However, profit-booking was visible around the day’s high which led to the shedding of gains partially.

The index looks strongly capped under the 50-day exponential moving average on a daily time frame.

On the daily chart, the index has been hovering within a rising channel. In addition, the price has sustained above 38.2 percent retracement of the previous fall from 12,152 to 7,511 which again indicates a bullish movement over the short term.

PM Narendra Modi's Rs 20 lakh crore stimulus package is impressive as the size of the package is significantly higher than the market expectation.

This leaves a space of Rs 12.56 lakh crore, almost 6 percent of GDP for incremental announcements. We expect the package to include additional spending on improving the nation’s infrastructure thus benefiting cement, steel, and road developers.

Technically, the rally of May 13 has not significantly changed the overall bearish structure for the benchmark index. The index needs to fill the gap created on May 4th and needs to sustain above 9,700 level.