Stock Picks Podcast for April 05, 2018: Top 2 stocks could give up to 21% return

The Nifty on Wednesday’s trade reacted lower from the upper band of the falling channel containing the entire price activity since mid of February 2018 placed around 10300 levels on the back of weak global cues as global trade war intensified.

We expect the index to extend the TimeWise consolidation and oscillate between a broader range of 9950 and 10300 levels while the focus will shift to stock specific action as we enter into Q4 earnings season.

We expect the broader markets to extend relative outperformance while index remains in consolidation mode

Structurally, we believe the index is undergoing a healthy bull market correction. Historically, within a bull market, corrections to the tune of 12-15% are considered as normal bull market corrections that provide long-term buying opportunities.

In the current context, the Nifty has already corrected 11% from lifetime high, equivalent to demonetisation correction (12%) levels in magnitude. Even the weekly RSI oscillator has taken support from demonetisation low of 41 levels.