Hot Stocks | Natco Pharma, IRB Infrastructure two buy calls for the short term

With global markets showing some favorable cues, last Monday, we had a cheerful start for the week at 11,000, marking the highest level since March 6, 2020.

This momentum extended to the following day as we witnessed yet another gap-up opening to extend this lead.

However, after this, the market had some reality checks in between which kept the market in a slender range, concluding the week a tad below 11,200 mark.

The banking index was one of the major charioteers of this extended move, barring Friday, when banking space witnessed some selling pressure, paring a decent portion of their weekly gains.

In continuation of our previous weekly commentary, our desired levels of 11,200 have now been met. But, since there are multiple technical observations that coincide around it, markets will have a daunting task in front of them.

Since we are extremely overbought, we are in two minds whether to go with the theoretical characteristic of this term ‘overbought’ or the practical one.

Theoretically, the current placement (78 percent retracement of the post COVID fall which coincides with 100 percent price extension of recent swings from March bottom) of the market is ideal to see some genuine correction, but practically, the market has the tendency to surprise us all the time.