3322: Hot stocks | Gujarat Fluorochemicals, Laurus Labs, Mastek can give up to 12% return in short term

Nifty fell sharply on April 5 as rising COVID-19 cases and increased restrictions spooked investors. The index ended the day with a loss of 230 points at 14,637.80.

However, from the intraday low, it recovered nearly 200 points and closed above its 50-day exponential moving average (EMA) which is placed at 14,634. It also closed above the weekly 10-period EMA which is placed at 14,631.

In the derivatives segment, we have seen Put writing at 14,400-14,500 and these levels will act as strong support going forward.

We believe that Nifty is in the strong support range of 14,400-14,600 and any correction from hereon should be utilised to accumulate long positions with the stop loss of 14,400.

On the higher side, Nifty is likely to find immediate resistance in the range of 14,700-14,750 where 5, 10 and 20-day exponential moving averages are placed. It could aim for 14,883-15,000 if it closes above 14,750.

Nifty Midcap and Smallcap indices have outperformed during the first two days of April. We expect their outperformance to continue in the coming weeks also.

The focus of the traders should be on mid and small-caps rather than benchmark indices.