Day trading guide: Two stock recommendations for Thursday
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Last Updated: Jan 27, 2021, 05:06 PM IST
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Synopsis Nifty took support at the 50% Fibonacci retracement level at 13,940. Now a sustained trade beyond 14,070 may trigger a short covering rally, taking it higher to levels of 14,250-14,310.
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Aditya Agarwala, YES Securities
Benchmark index Nifty witnessed a 300-point cut after a weak start to the trading session ahead of the F&O expiry and the much-awaited Union Budget. Further, bears kept pushing the index lower at every minor rise to shut shop below the 14,000-mark. Nifty has now lost 5.60% from the highs of 14,750.
However, following this relentless selling by the bears, the index has now reached oversold territory on shorter time frame charts along with positive divergence on the RSI, indicating that a short covering rally may be witnessed in the coming trading session. Moreover, Nifty took support at the 50% Fibonacci retracement level at 13,9
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Nifty futures on the Singapore Exchange traded 55 points, or 0.41 per cent, higher at 13,633.50, in signs that Dalal Street was headed for a positive start on Wednesday. Here are a few stocks which may buzz the most during the day.
Mahindra & Mahindra (M&M): Automotive major M&M said that it will increase the prices of its commercial and passenger vehicles effective 1 January next year.
BPCL: Privatisation-bound Bharat Petroleum Corporation (BPCL) has said its board will on Thursday consider buying out Oman Oil Company in the Bina refinery project in Madhya Pradesh.
Future Enterprises:Future Enterprises Ltd (FEL) is planning to prepay the debentures issued by the company from the money to be received after selling its retail and other businesses to Reliance Industries step down firm Reliance Retail Ventures.