Vinay Rajani of HDFC Securities suggests buying these stocks on April 2

Nifty View 

After opening down by 178 points, Nifty quickly recovered 226 points within the first half hour. However, this recovery was not able to maintain its momentum at higher levels, leading to a nosedive of 429 points from the day's high of 23565 towards 23136. Nifty breached the critical support levels of the 100- and 200-day EMA, ultimately closing down 353 points, or 1.5 per cent, at 23165.  By testing 23141, Nifty has completed a 38.2 per cent retracement of the entire rise observed from 21964 to 23869. A sustained level below 23141 could push Nifty towards the next support at 22917, which represents a 50 per cent retracement level. The previous support at 23400 is now expected to act as resistance for Nifty moving forward.

 

 

Buy NMDC (Rs 70) | Target: Rs 73 | Stop-loss: Rs 68

  NMDC Stock price has been forming higher tops and higher bottoms on the daily chart. Stock is placed above all important moving average, indicating bullish trend on all time frames. Metal sector has also been showing strength. 

  Buy Bank Of India (Rs 110) | Target: Rs 115 | Stop-loss: Rs 107 

Bank of India Stock price has reclaimed its level above 200 DEMA. Stock price formed bullish double bottom formation at 94 and bounced back. Stock price has been rising with healthy volumes. Indicators and oscillators have turned bullish on daily charts.

 

(Disclaimer: Vinay Rajani is a senior technical and derivative analyst at HDFC Securities. Views expressed are his own.)