Hot Stocks Nifty may retrace to 10,300; buy these 3 stocks for double-digit returns !!

Nifty gave a surprising for move by climbing ‘the wall of worry’ i.e. 61.8% retracement levels of the entire fall of March and has managed to give the highest weekly closing of the last 16 weeks. Meanwhile, weekly Heikin Ashi candle continued as a bullish flat bottom pattern and formed a higher high and higher low pattern, clearly suggesting that bulls are in domination and prices are ready to soar further.

Daily RSI is sustaining above its 9 SMA also adding strength to the current ongoing movement. The key target for the current rally is firstly 10,900 where 200 DMA stands and thereafter 11,200 that is the target as per breakout from Cup and Handle larger degree pattern.

In the very short term as the majority of the momentum indicators are trading in the overbought zone, the possibility of small retracement towards 10,300 levels cannot be ignored. Last week in the banking index managed to give the highest weekly closing in the last three months indicating that bullish bias will continue. Fresh impetus will come once Bank Nifty breaks above 22,500 marks.

From the last few weeks, this counter is moving in a well defined ascending channel with multiple touchpoints and appears to be having strong support around Rs. 545-550 levels as it bounced back many times from the demand zone of the mentioned channel.

If the stock sustains above this support than a decent target of Rs 650 cannot be ruled out in this counter over a given period of time. Therefore, investors should accumulate this scrip around Rs 575 with a suggested stop loss of Rs 523 for the upside target of Rs 650.

This stock on the daily chart has witnessed a falling trend line breakout and it is trading above the falling resistance line. The formation of the ascending channel breakout suggests an upside move. Momentum indicator RSI is also trading above 50 with bullish crossover on the cards. Moreover, the line of polarity is providing support near the base of the chart.

Meanwhile, the MACD indicator is likely to reverse and seems to have bottomed out on the daily chart suggesting an upside momentum. Traders can accumulate the stock around Rs 625 with a stop loss of Rs 585 for the target of Rs 700.

Scrip spurted from a low of Rs 1,306 after giving trend line breakout, it showed pullback on upside & marked the high of Rs 1,425, and consolidation was seen thereafter. Currently, it is waiting for the breakout on the upside so that it can accelerate buying momentum further. The emerging line of polarity on the daily time frame of the chart is suggesting bullish momentum in the scrip.

Indicators and oscillators are also showing a conducive scenario in the coming sessions. So based on the mentioned technical structure one can go long in the scrip around Rs 1,380 for the target of Rs 1,520 marks with a stop loss of Rs 1,320.

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