Index View: Nifty

The Nifty index is showing signs of a strong recovery, gaining approximately 600 points from its opening level on Monday. After reclaiming its resistance level of 22450 last week, it has achieved its initial target of 22800. Observing an NR7 formation, the index has been trading within a narrow range of less than 2% for seven consecutive days. A breakout was observed on Tuesday, suggesting a potential 2% increase from the breakout point of 22650. The index is now targeting a level of 23150, with any dips below 22800 likely to attract buyers.

Bank Nifty

Bank Nifty has shown significant momentum after reversing from its 9-month low last week. It has achieved its immediate target of 49,000, breaking out from its consolidation range. The index is now aiming for 49800 / 50200, having reclaimed an immediate resistance of 49000, which is expected to act as support. Investors are advised to consider adding fresh longs near the 49000 mark for the mentioned upside targets.

Top Stock Picks

LIC Housing Finance - LICHSGFIN (BUY): With a Last Closing Price (LCP) of 549.80, a Stop Loss at 531, and a Target of 590, LIC Housing Finance has broken out of a nine-month downward trend, indicating a potential test of its prior swing high around the 600 level.

Bank of Baroda (BUY): At an LCP of 213.76, a Stop Loss at 206, and a Target of 230, Bank of Baroda is on the verge of an inverse head and shoulder breakout, suggesting a possible move towards 235-240 levels.

UPL (BUY): With an LCP of 646.30, a Stop Loss at 626.50, and a Target of 686, UPL has formed a classic flag-and-pole pattern, indicating a likely upward movement.

Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.