India’s benchmark indices Nifty and the BSE Sensex extended their winning streak for a third straight session on Monday, closing higher as investors piled into IT, banking, and healthcare stocks. The strong momentum helped the Nifty comfortably reclaim the 25,000 mark. It is now trading comfortably above both its key short-term and long-term moving averages.
Commenting Nilesh Jain, Head – Technical and Derivatives Research Analyst at Centrum Broking said that the support base has shifted higher, with major support now established around the 24,800 level. “The Nifty has completed a 50% retracement of the recent decline from 25,448 to 24,588, with the retracement level placed at 25,020. Momentum indicators and oscillators have begun to strengthen, suggesting a continuation of the upward move. If the index sustains above the 25,020 mark, a further rally towards 25,500 in the October series appears likely,” he said.
Here are 2 stock recommendations for Tuesday: