If the index manages to cross and sustain above the resistance zone of 10,200-10,250 on a consistent basis, then the strength of the relief rally towards 10,450-10,550 levels is expected to increase, according to technical analysts. There are strong support clusters at 10,050-10,000 levels which are likely to provide cushion in case of declines. With emergence of positive divergence on the daily chart and bullish crossovers by the momentum indicators, expect a short-term trend reversal only on a decisive close above the 10,200 levels.The Nifty faces immediate resistance at 10,200-10,230 levels on the upside; and on a decisive close above, expect a retracement rally towards the 10,450-10,550 levels. The Bank Nifty faces crucial hurdles around the 24,500 levels, which is a weekly resistance zone, and will need to close above the same for any bullish confirmation. Our top picks are Mahindra & Mahindra, Hero MotoCorp and Eicher Motors and expect 15-20 per cent returns.

Source: Economic Times April 02, 2018 02:26 UTC