Hot Stocks | Bharat Forge, SBI Card two buy calls for short term

The week gone by was an action-packed one for Indian markets, as well as for global markets.

The domestic markets saw a roller-coaster move throughout last week. In fact, during the weeks, swings were wild, barring Friday’s session where we witnessed a unidirectional northward move.

A possible breakout from the sturdy wall of 10,850 was anticipated last week. It was expected in the initial part of the week but the market went through a correction first and so, the conviction became stronger during the middle of the week about Nifty surpassing the hurdle soon.

Finally with Friday’s late surge in banking conglomerates, Nifty has confirmed a breakout above 10,850, which resembles a ‘Bullish Flag’ pattern on the daily chart.

Now, the banking index seems to have regained strength which we believe should lead the movement in the forthcoming week.

As far as levels are concerned, the up-move should ideally get extended towards the 78.6 percent retracement zone at 11,100–11,200.

Since we saw a small decline early last week, we will have to reassess the situation whether the markets have further steam left to go beyond these levels or not.

Traders are advised to keep following stock-specific moves and the base now remains at 10,660–10,560.