Hot Stocks | Nifty may retrace to 10,300; buy these 3 stocks for double-digit returns

Nifty gave a surprising move by climbing ‘the wall of worry’ i.e. 61.8 percent retracement levels of the entire fall of March and has managed to give the highest weekly closing of the last 16 weeks.

Meanwhile, weekly Heikin Ashi candle continued as a bullish flat bottom pattern and formed a higher high and higher low pattern, clearly suggesting that bulls are in domination and prices are ready to soar further.

Daily RSI is sustaining above its 9 SMA also adding strength to the current ongoing movement. The key target for the current rally is firstly 10,900 where 200 DMA stands and thereafter 11,200 that is the target as per breakout from Cup and Handle larger degree pattern.

In the very short term as the majority of the momentum indicators are trading in the overbought zone, the possibility of small retracement towards 10,300 levels cannot be ignored.

Last week the banking index managed to give the highest weekly closing in the last three months indicating that bullish bias will continue. Fresh impetus will come once Bank Nifty breaks above 22,500 mark.