Indian headline indices conceded their morning gains on a volatile Thursday, dragged mainly by IT and energy stocks. Most auto stocks also shed their morning gains to close lower. The daily close was just below the 21 EMA, indicating a continuation of weakness, although the index appears to be nearing a potential trend reversal.
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities, said that Nifty pared most of its gains after a gap-up start driven by optimism over GST reforms. “A decisive move above 24,750 could provide the strength needed for the Nifty to move towards 25,000. A sustained move above 25,000 could trigger a further rally. On the other hand, failure to close above 24,750 within the next two to three days may lead to renewed selling pressure on the index,” De said.
Here are 4 stock recommendations for Friday: