Hot Stocks | Three stocks that could give up to 14% return in next 3-4 weeks
Episode 2142, Jan 22, 2020, 12:30 AM
Nifty witnessed selloff for the second consecutive day and ended below 12,200 on January 21.
Among sectors, metals and auto suffered losses while some pharma names logged gains.
On the derivatives front, once again bears made a comeback as call writers added hefty open interest at 12,200, 12,300 and 12,400 strikes.
On the technical front, Nifty made a rounding top pattern on the daily charts and retraced back towards 50 percent Fibonacci retracement levels of the swing seen from 11,930 to 12,430.
At the current juncture, Bank Nifty is trading near its 100-days exponential moving average which is placed around 30,775. A breach of this level could add further selling pressure.
We advise traders to remain cautious at the current juncture while creating fresh longs as markets are likely to remain volatile due to the upcoming Union Budget.