Nandish Shah,HDFC SECURITIES
On February 28, the last trading day, Nifty closed at 16,794 with a recovery of over 400 points from the day’s lows on the back of buying in metal, tech, oil and gas stocks. The market’s short term trend is looking bullish as Nifty managed to close above its 5-day EMA at 16,790 for the first time since February 17. Apart from this, Nifty has also managed to close above the 200-day EMA located at 16,720.
In the futures segment, foreign institutional investors made fresh purchases on February 25, due to which their net long and short ratio has increased from the level of 0.91 to 1.60. In other words, out of the total positions of FIIs in index futures, 62 per cent are in the long side and 38 per cent on the short side.
Trade setup for today: Take a look at these figures before the market opens, it will be easy to catch profitable deals
Looking at the options segment, we have seen aggressive put writing at 16,400-16,500 levels. In such a situation, it seems that as long as Nifty remains above 16400, its short term trend will remain bullish. Other market indicators like RSI and MFI are also indicating a continuation in the market. So we can say that the short term trend has turned positive for Nifty. We can see Nifty going towards 17,100 soon and then towards 17600. Put a stop loss of 16,400 for any long position in Nifty. IT, metal and FMCG are likely to outperform in the coming weeks.
Today’s three short term picks in which you can earn huge money in 2-3 weeks
KPIT Technologies: Buy , LTP: Rs 568.5 | Buy this stock with a stop loss of Rs 530, target of Rs 640. In 2-3 weeks it can give us up to 12 per cent returns.
Infosys: Buy | LTP: Rs 1,715.6 | Buy this stock with a stop loss of Rs 1,660 and target of Rs 1,850. In 2-3 weeks it can give us up to 8 per cent returns.
Jindal Stainless: Buy , LTP: Rs 194 | Buy this stock with a stop loss of Rs 185 and target Rs 215. In 2-3 weeks it can give us up to 11 per cent returns.
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