Nifty started the week with a bullish note and gained almost 300 points till February 7, however, some profit booking took place after RBI policy meet outcome. Nifty has faced resistance at the key Fibonacci retracement level of 61.8 percent for the prior large fall. But short-term technical set up remains bullish

Any decisive move above the stiff resistance 10,985 will push Nifty higher towards previous swing high (11,111)

Nifty started the week with a bullish note and gained almost 300 points till February 7, however, some profit booking took place after RBI policy meet outcome. Nifty has faced resistance at the key Fibonacci retracement level of 61.8 percent for the prior large fall. But short-term technical set up remains bullish.

Recently, the index has got a fresh buy signal in GMMA (Guppy Multiple Moving Average) on daily timeframe indicating bullish bias. It is already in buy mode on weekly and monthly time frames. Higher high and higher low formation on weekly as well as monthly time frames suggest Nifty is trading with positive bias in the higher time frame.

Volatility index VIX has closed below 16. The market is trading above its three major simple moving averages 20-DMA, 50-DMA and 200-DMA that are placed between 10,840-10,860, suggesting strong support zone on the lower side. A normal retracement towards this strong support zone of moving averages can be used as a buying opportunity.

Moreover, any decisive move above the stiff resistance 10,985 will push it higher towards previous swing high (11,111). A close below the strong support line of polarity around 10,850 can change the current sentiment.

In case of Bank Nifty, range breakout is expected only above 27,585, which will push prices higher towards 27,900. The immediate trading range of 27,900-26,900 remains intact.

Here is the list of five stocks that could return 5-15 percent in short term:

Century Plyboards | Buy around: Rs 165 | Target: Rs 190 | Stop loss: Rs 149 | Upside: 15 percent

The daily chart of Century Plyboards reveals that demand is increasing and supply is diminishing. Emerging double bottom on the weekly chart shows the stock has bottomed out near it lower levels.

Moreover, a bullish crossover is seen in the scrip where 20-DMA has crossed 50-DMA suggesting upside momentums. Positive crossover in MACD is also favouring price action. Buy Century Plyboards around Rs 165 with the stop loss of Rs 149 for the target of Rs 190.

Maruti Suzuki India | Buy around: Rs 7,100 | Target: Rs 8,100 | Stop loss: Rs 6,750| Upside: 14 percent

The scrip spurted from a low of Rs 6,317. Pullback on the upside marked a high and the stock started consolidating there. This pullback rally and consolidation has taken the form of inverted H&S price pattern on the daily chart. Currently, it is waiting for the breakout on the upside so that it can accelerate buying momentum further.

Emerging bullish crossover in MACD on the daily time frame of chart suggests bullish momentum in the scrip. Indicator and oscillator also show conducive scenario in the coming sessions.

So based on the above mentioned technical structure, we expect that price may see momentum on the upside and hit our target. Buy Maruti Suzuki around Rs 7,100 with a stop loss of Rs 6,750 for a target of Rs 8,100.

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