India’s headline indices broke their three sessions losing streak on Tuesday triggered by auto and pharma stocks. Nifty which ended with 0.6% gains, formed a bullish engulfing pattern on the daily chart, suggesting the possibility of a meaningful bullish reversal.
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities said that the index has started a recovery supported by a positive divergence on the 2-hourly chart. “In addition, a hidden positive divergence is visible on the daily chart, further indicating the potential for a smart recovery in the short term. On the higher side, Nifty may move towards 24,950–25,000. A decisive move above 25,000 could trigger a rally towards 25,200. On the downside, support is placed at 24,750,” De said.
Here are 4 stock recommendations for Wednesday: