Hot stocks: Uptrend may continue; these 2 stocks may give healthy returns in 3-4 weeks

Nifty rallied sharply in the last hour of trade post forming a low of 11,832. This reversal was then followed by a consecutive gap up openings on the last two sessions and the index rallied higher to end the week well above the 12,000-mark.

Nifty again took support in the range of 11,850-11,800 and resumed its higher degree uptrend. We remained optimistic on the markets in the recent corrective phase. The strategy of ‘buy on dips’ has certainly worked quite well in the last few months.

Now, if we look at the recent chart structure, Nifty has managed to form a support base in the range of 11,850-11,800 twice in the recent past (i.e. in mid-November and in the last week) and hence, this range now becomes sacrosanct for the near-term.

As broader markets also participated in the rally in the last couple of sessions, it is clear that the market has resumed its uptrend. Hence, we maintain our optimistic stance and advise traders to trade with a positive bias.

As per the reciprocal retracement theory, the probable target for Nifty in the near-term is seen around 12,250-12,300, whereas the immediate supports are placed around 11,950 and 11,850.

During the week, metals, auto and banking were the outperforming sectors which had seen upmove with a good rise in volumes.