The benchmark index Nifty closed with robust gains on Wednesday, powering past the 26,200 mark amid broad-based buying. It broke its three-session losing streak aided by financials, energy, IT and auto stocks.
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities said the index moved up sharply with strong momentum, engulfing the negativity of the last three days. “The trend looks positive, shrugging-off the recent weak sentiment. Moreover, the RSI has reversed the earlier negative divergence on the daily chart. At the lower end, the index found support at the 38.20% Fibonacci retracement level on the daily chart before this rally, highlighting the significance of the reversal. In the short term, the index may remain positive with the potential to reach 26,426/26,580. On the lower end, 26,070 is likely to act as support,” De said.
Here are 2 stock recommendations for Thursday:
