Milan Vaishnav said the Nifty 50 long-term trend remains intact after it rebounded from its 50-month moving average at 22,333. He expects the index to extend its technical rebound if it holds above the 22,300–22,675 zone. Vaishnav also advised investors to hold their positions in Laurus Labs and Shyam Metalics.

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According to Milan Vaishnav, MSTA, founder of Gemstone Equity Research & Advisory Services, the long-term trend of the Nifty 50 remains intact, as the index has rebounded from its 50-month moving average (MA), placed at 22,333.

Overall, as long as the Nifty 50 holds above the entire 22,300–22,675 zone, the index is likely to extend its current technical rebound, he said in an interview with Moneycontrol.

Meanwhile, Vaishnav advised investors to hold their positions in Laurus Labs and Shyam Metalics and Energy.

“Laurus Labs is in a strong and secular uptrend. I feel this trend will continue, as there are no visible signs of a reversal. Similarly, there are no signs of profit-booking yet, as Shyam Metalics and Energy continues to trend higher,” Milan Vaishnav said.

Do you expect the Nifty 50 bulls to struggle to regain control amid the bears' tight grip? What are the crucial levels to watch?

I would be looking at Nifty from a different angle. The Index had registered good gains over the previous week. On Monday, it gave up a portion of those gains. On Wednesday, we will open with a gap of one trading holiday and the markets will adjust themselves to the global trade setup.

Having said this, what is more important to watch would be the Nifty's behaviour against the level of 200-week MA which is currently placed at 22,675. This is a crucial long-term support which was violated briefly but was subsequently reclaimed.

Importantly, the long-term trend trajectory of Nifty stays intact as it has rebounded off the 50-month MA placed at 22,333. So, overall, as long as we defend the entire 22,300-22,675 zone, we are likely to extend the current technical rebound.

Which two stocks would you recommend betting on in the short term?

Bharat Heavy Electricals (BHEL)

BHEL is presently trapped in a sideways consolidation. The recent breakout attempt failed despite good numbers. The stock is presently retesting the support zone of Rs 420-427. As long as it keeps its head above Rs 414, it provides a good entry point with a very favourable risk-reward ratio.

FSN E-Commerce Ventures Nykaa

Nykaa has also been in sideways consolidation for the last several weeks. Now the lead indicators are positively diverging, and one can expect a resumption of the upmove in the stock. This can take it meaningfully higher from the current levels.

Do you see any signs of profit booking in Shyam Metalics and Energy after its stellar rally to a new high?

There are no signs as yet of any profit-booking as the stock continues to trend higher. The best way to approach this for investors would be to keep trailing their stop-losses higher. In the present case, one may continue to stay invested while trailing their protective stop higher at Rs 1,180.

Are you bullish on JSW Steel? Do you see the stock moving towards a record high, considering the current technical indicators?

In JSW Steel, we have seen only a counter-trend technical rebound in recent days. The stock has multiple overhead resistance levels to clear before it can actually turn bullish. I would get bullish on it only after it goes above Rs 1,300 and not before that.

Do the charts and technical indicators signal further upside in Laurus Labs, which has already rallied more than 80 per cent so far this year, following a strong performance last year as well?

Laurus Labs is in a strong and secular uptrend. I feel that this trend would continue as there are no visible signs of any reversal. While I would not recommend making aggressive entries in this stock, one can certainly buy the stock in modest quantities and accumulate it. Those who are invested may continue to remain invested, trailing their protective stop-loss higher at Rs 1,920.

Would you recommend buying Federal Bank following the formation of a rounding bottom pattern and a subsequent breakout?

Federal Bank is in a continuing uptrend. It has resumed its uptrend following a recent counter-trend corrective move. I expect the stock to move higher from current levels. It can be accumulated in modest quantities with each decline.