These 15 stocks are attractive investment opportunities for April, says technical chartist

April has traditionally been a beneficial month for investors, with the Nifty 50 index producing a mean go back of 1.ninety four percentage and remaining definitely fifty six percentage of the time, in keeping with Viraj Vyas, a technical and derivatives analyst for institutional equities at Ashika Group.

On sectors and shares to select out for April, shares withinside the defence zone which include Hindustan Aeronautics, Bharat Dynamics, and Bharat Electronics seem compelling, Vyas instructed Moneycontrol in an interview.

Additionally, Dr Reddy`s Laboratories and Alkem Laboratories gift a low-risk, excessive-praise funding possibility as they display bullish intent, stated Vyas, who has over seven years of enjoy and a deep information of technical analysis, capital markets and behavioural finance. Edited excerpts:

Do you count on a sturdy rally in April, taking the Nifty past the 18,000 mark?

Since December 2022, the Nifty 50 index has been following a falling channel and it these days determined aid across the decrease restriction of the channel. At this degree, there are  sturdy aid zones: a) 16,800, which become a previous swing low withinside the weekly chart, and b) a bullish hole region from July 2022.

Despite the FII quick at an all-time excessive of eighty four percentage as of Wednesday's close, the DII lengthy function is likewise at a document excessive of 87 percentage, stopping a big decline. While FIIs can also additionally are searching for to ee-e book profits, the index ought to strive a remedy rally toward the 17,six hundred-17,800 range, despite the fact that sparkling bullish participation can also additionally best come if the index manages to maintain above that degree.

Additionally, April has traditionally been a beneficial month, with the index producing a mean go back of 1.ninety four percentage and remaining definitely fifty six percentage of the time.

Do you notice the Nifty Auto getting returned above the 13,000 mark in April?

Nifty Auto has visible a extraordinary run from March 2022 lows of 9,500 until the current swing excessive of 13,500. Currently, the index is consolidating time- and charge-sensible, and even as I don`t count on a direct upside here, I would love to factor out that it's been pretty resilient, maintaining close to its lifestyles highs in the course of tumultuous marketplace conditions.

On the weekly chart, it's miles buying and selling in a Broadening Wedge sample, which could pressure it toward the 12,500-12,six hundred sector however best maintaining above this sector is in all likelihood to cause a sparkling leg of a bull run withinside the vehiclemobile space.

In which 3 shares could you need to take lengthy positions in April and what`s the approach for them?

I might be searching at JBM Auto, Dr Reddy's Laboratories and Godrej Consumer Products. These shares have proven relative power in a uneven marketplace and I count on this power to continue.

JBM Auto has visible a large consolidation and is buying and selling round lifestyles highs. A breakout above Rs 650 can pressure the inventory better toward Rs 720-750 tiers with key aid across the Rs six hundred mark.

Dr Reddy's Labs too has been consolidating and has shaped an ascending triangle sample – a breakout above Rs 4,six hundred can take the inventory better toward the Rs 4,900-5,000 degree with key aid at Rs 4,450.

Godrej Consumer Products has shaped a Cup and Handle sample and is buying and selling above the neckline (Rs 945 degree). The inventory can also additionally goal Rs 1,060-1,080 with key aid on the Rs 940 mark.

Do you notice a excessive opportunity of the Nifty IT breaking September 2022 lows withinside the coming months?

Nifty IT become the belle of the ball post-March 2020 and even as it crowned out in January 2021, the index is presently forming a base and is correcting time-sensible earlier than beginning the following leg at the upside. The charge motion of the previous couple of weeks become without a doubt now no longer encouraging, specifically with the massive and midcap names getting hammered.

Having stated that, I firmly trust that the index is in an accumulation section and the September 2022 lows might be held because the index will take extra time earlier than beginning the following leg of a bull run. On the flipside, smaller names like Newgen Software and KPIT Technologies are searching properly located as the road expects boom capacity and margin enlargement in such names.

PB Fintech appears to be developing a Flag and Pole sample, especially key transferring averages. Do you count on a big rally withinside the inventory charge?

The inventory is showing an uptrend on smaller diploma charts, having handed each its 21-day and 200-day EMA (exponential transferring average), however the large weekly and month-to-month charts depict a pessimistic outlook. Although it has reached a nine-month excessive, the inventory is presently encountering a important resistance degree at Rs 650, which become a bearish hole from June 2022.

Furthermore, the RSI (relative power index) indicates a bad divergence. The inventory is in a kingdom of restoration and has the capacity to climb better, however this may depend upon its capacity to stay above the 200-day EMA on the Rs 550 degree.

Which are the important thing sectors to look at in April?

The Nifty PSE index stays at anciental highs, and shares withinside the defence zone which include Hindustan Aeronautics, Bharat Dynamics, and Bharat Electronics seem compelling. The Nifty Infra zone has additionally been making the most of sturdy tailwinds because the budget, and groups like Larsen & Tourbro, KNR Constructions, and cement shares gift appealing funding opportunities.

Additionally, Nifty FMCG shares like Varun Beverages, Radico Khaitan, ITC, and Godrej Consumer Products are showing power and capacity.

Financial offerings shares like Axis Bank, Cholamandalam Investment, and ICICI Bank are predicted to rebound, even as pharma shares which include Abbott India, Dr Reddy's Laboratories, and Alkem Laboratories gift a low-risk, excessive-praise funding possibility as they display bullish intent.

Disclaimer: The perspectives and funding guidelines expressed through funding professionals on Moneycontrol.com are their very own and now no longer the ones of the internet site or its management. Moneycontrol.com advises customers to test with licensed professionals earlier than taking any funding decisions.