On the Daily Chart, Nifty gave a falling wedge pattern breakout on 3rd January 2022 and it has given returns of 3.50 per cent till date without any major downside. Meanwhile, on Weekly Time Frame, Nifty has given a Bullish Flag Pattern breakout and is looking to move towards its Life Time High of 18600. Currently, the market pattern seems to be in favor of the bulls.
Market breath remains at 2:1. About 35 stocks are showing gains while 15 stocks are showing decline. Nifty seems to be forming a higher top, higher bottom formation on the daily chart. A few weeks back Nifty looked under pressure and was trading below its 21 and 50 DMA but due to strong breakout this week, Nifty has remained above this average on daily time frame.
Short term trend positive for Nifty, bet on these stocks in intraday, there will be strong earnings
There is a huge possibility that Nifty may once again have to do tough stuff near its previous resistance zone at 18600. If Nifty crosses the level of 18600 with strength, then soon we can also see the level of 19,000 in it. There is immediate support for this at 17900.
Looking at Banking stocks, Bank Nifty has shown a strong reversal at higher levels after forming a hammer candlestick pattern on the weekly chart and has taken support near its 21-week EMA. There is support for Bank Nifty at 37,600-37,200. At the same time, there is a registration at 39200-39500.
Today’s Top 3 Picks That Can Earn Double Digits In Short Term
Tata Motors: Buy | LTP: Rs. 507.25 | Buying advice in this stock with a stop loss of Rs 485, target of Rs 547. This stock can see a return of 7.8 percent in 2-3 weeks.
Indus Towers: Buy | LTP: Rs 275.80. This stock will have a buy call with a stop loss of Rs 262 with a target of Rs 302. This stock can see a return of 9.50 percent in 2-3 weeks.
Tata Communications: Buy | LTP: Rs 1,557.70 | Buying advice in this stock with a stop loss of Rs 1,460 and target of Rs 1,750 would be a buy call. This stock can see a return of 12 per cent in 2-3 weeks.