Hot Stocks | TV18 Broadcast, Eveready Industries, Gujarat Gas can give up to 19% return in short term

Jun 01, 12:30 AM
Nifty continued its winning streak for the seventh consecutive day on May 31 as it gained 147 points to close at yet another new high of 15,582.80.

With intermediate and long-term momentum readings like the 14-week and 14-month RSI in rising mode and not showing any signs of negative divergence, we expect the uptrend to continue.

Also, plus DMI is placed above the minus DMI and the ADX has crossed 20 level on the upside which suggests Nifty could continue its upward journey in the near term.

In the options segment, we have seen Put writing at 15,300 level. During the last correction, Nifty found support at 8-day EMA, which is currently placed at 15,311, and bounced back.

This level coincides with the Put writing level of 15,300. Therefore, we believe that the short-term trend will remain intact as long as Nifty is trading above 15,300.

A short-term trend reversal would be confirmed only if the Nifty closes below 15,300.

Immediate targets for the Nifty are seen around 16,000-16,100, derived from the channel breakout on the weekly chart.

Bank Nifty was the leader in the recent up move of the market and we expect the same trend to continue.

Private banks, PSU banks and NBFC space should be on the radar for getting higher returns in the coming days.

Bank Nifty is expected to move towards the next targets of 36,500 and 37,700.

Longs should be protected with 15,300 stop loss in Nifty and 34,500 in the Bank Nifty.