Hot Stocks | Here is why you should buy Tata Communications, Tata Motors, Indus Towers in short term

On the daily chart, Nifty50 has given a falling wedge pattern breakout on January 3, 2022 and has given a return of 3.50 percent to date without a meaningful correction. Meanwhile on the broader time frame (weekly) prices have given a bullish flag pattern breakout and prices are inching near their previous lifetime high levels which are placed at 18,600 levels.

The structure of the index is in favour of bulls. Market breadth has remained at 2:1 with 35 stocks on the advancing side and 15 stocks on the declining side. The prices on the daily chart are trading in a higher top higher bottom formation.

A couple of weeks back prices were under a bit of pressure and were trading below their 21 & 50-day exponential moving average but a strong breakout in the current week has forced the prices to close above the said averages on the daily time frame.

Nifty50 is most likely to cap near its previous resistance zone which is placed at 18,600 and if the index manages to cross above the said level then 19,000 will be on the cards soon. The immediate support for the index is placed near 17,900 levels.

Bank Nifty after forming a Hammer candlestick pattern on the weekly chart, prices have shown a strong reversal on the higher side and have taken support at its 21-week exponential moving average on the weekly chart. Important supports are now at 37,600-37,200 and resistance is placed near 39,200-39,500.