Nifty ended its four-day losing streak on Friday aided by strong buying action in auto, energy and financial stocks. The Nifty has witnessed a breakout from a falling wedge pattern, indicating improving market sentiment.
Commenting on the current trends, Rupak De, Senior Technical Analyst at LKP Securities, said the index reclaimed the 21-day EMA on the daily chart. “After finding support near the 50-day EMA, the index recovered towards the 26,000 mark. Going forward, 26,000 will be a key level to watch; a decisive move above this level could propel the index towards 26,300. On the downside, immediate support is placed at 25,900, which is likely to act as the first line of defense for the Nifty,” De said.
Here are 2 stock recommendations for Monday:
