Markets in a short term uptrend, Nifty could target 18,135; buy these two stocks for gains

On the daily chart, we observe that the Nifty has recently bounced back from the lower end of a downward sloping channel and has witnessed a smart rally over the last 5 weeks..

In the process, the Nifty has crossed its previous intermediate high of 17,800, thereby reversing the recent intermediate downtrend..

Indigo has corrected from an intermediate high of 2180 tested in February 2023 and found support at the 1810 levels in March 2023, which is roughly close to the previous intermediate highs of the stock..

This indicates the change of polarity principle is at work, as prior resistances are now acting as supports.. The stock has since then bounced back and made a higher bottom..

With the intermediate technical setup looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy between the 1990 and 2020 levels..

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