Buy these two stocks for 10-11% returns as Nifty downtrend reverses and bulls return

Buy these two stocks for 10-11% returns as Nifty downtrend reverses and bulls return

By Nandish Shah

Nifty 50 index has reversed its recent downtrend ahead of the much-awaited result of assembly polls in five states, as it has crossed the 5 day EMA (first time in the March month). Nifty has also filled the down gap made on 07 March 2022. Advances outnumbered the declines with a huge margin where the advance-decline ratio stood at 3.88 on BSE (Highest since June 2020), indicating strong breadth.​ Upside acceleration towards the 16700 levels is likely where 200-day EMA is placed. Therefore, for traders our advice is to accumulate longs with the immediate target of 16700 levels. Far resistance is placed around 17050 levels. Longs should be protected with the stop loss of 15990 levels

BUY ZENSAR TECH Target Rs 400 | Stop-loss Rs 340Return 11%

Stock price has reversed its recent downtrend as it has crossed the 5 and 10 day EMA with higher volumes. Stock price has also broken out from the downward sloping trendline. RSI Oscillators is placed near 50 and sloping upwards on the daily chart, Indicating strength in the current uptrend. Technology as a sector looking good for the short to medium term.

BUY MAHINDRA HOLIDAY RESORTTarget Rs 235 | Stop-loss Rs 200Return 10%

After forming multiple bottoms around 200-day EMA, stock price reversed northwards to close above its 5 and 20 day EMA. Stock price has broken out on the daily chart where it closed at highest level since 23-Feb with higher volumes. Momentum Oscillator RSI has witnessed trendline breakout indicates higher possibility of a sharp rise in the prices in the coming days.

(Nandish Shah is a Senior Derivative & Technical Analyst at HDFC securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)