Hot Stocks | NMDC, Sun Pharma, Voltas to see double-digit gains in short-term

Nifty has completed its 13-day correction from the recent high of 9,878 and witnessed a sharp bounce from the lower support levels of 8,800 with a strong upmove across sectors.

The crossover of the short-term averages of 9,250 levels would give a confirmatory signal for the positive momentum to continue on the higher side.

With the extended weekend and derivatives expiry, we expect sharp volatility with respect to rollover movements in individual sectors and stocks.

We remain positive on select sectors like auto, pharma and large private banks as the risk-reward is in favour of longs and expect these sectors to outperform the broader markets.

Nifty Metals is showing some breakout from its congestion zone crossing its medium-term averages.

We remain positive on markets and any decline near 8,800-8,650 levels would be a good opportunity to add longs as they are the important support levels on multiple time frames and retracements.

Nifty 9000 PE has the highest OI of 33 lakh shares with fresh addition of 7 lakh shares in the trade on May 21 at an average price of Rs 90, so 8,920-8,950 will act as strong support for the next week.