3555: Hot Stocks | Here is why you should bet on Asian Paints, Pidilite Industries, HDFC Bank in short term
After a correction of around 12 percent from the top of 18,604 levels, the Nifty has bottomed out near 16,400 - 16,370 zone which coincides with 50 percent Fibonacci retracement of previous advance from 14,151 – 18,604 levels and moved up with the formation of Higher Top Higher Bottom pattern. Also it has sustained above its 5-week high which indicates the Nifty has resumed its uptrend.
On the daily charts, the Nifty has sustained above all important moving averages like 20, 50, 100 & 200 days which gives confirmation of the bullish sentiments for the medium to long term.
However, the momentum indicator like RSI (relative strength index) is sustaining above 60 mark on all the time frames which indicate market has strong positive momentum for the medium to long term.
We believe, the Nifty will face strong resistance at 18,210 and 18,604 mark. On the flip side, the support levels would be placed at 17,380 and 16,830 levels.