2990: Hot Stocks | Can bet on Bharat Forge, CEAT for short-term
Although we could reclaim 12,000 in the week gone by, the momentum was lacking as the benchmark looked a bit tentative around this.
For the index-specific traders, it was clearly a dull week as we witnessed a lot of choppy trades with no clear direction.
Eventually, Nifty ended the week with a gain of more than a percent.
Now, let’s understand why 11,650 – 11,600 is considered to be strong as well as a crucial support zone.
If we connect all major highs from the record highs in descending order, the trend line or pullback support comes around this level, which coincides with the 20-day EMA as well.
Hence, as long as this support is not violated, one should adopt a 'buy on dips' strategy. A close below 11,650 – 11,600 would result in a short-term trend reversal and hence, traders should start lightening up positions after it.
Before this, intermediate supports are at 11,820 – 11,775. Now, we are a tad below 12,000 and we expect Nifty to surpass 12,000 – 12,050 levels in the coming days to head towards 12,200 – 12,400.
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