(The basis of the discussion is based upon news available on 21.12.2020. So traders must take further analysis while taking stock position. OnlineTradeIndia.com do not take any responsibility if traders incur loss).
Dollar Index has lost its sheen after hitting $102.50 in the month of March 2020 and falling since than. At present, its has reached at $90 losing approximately 11% from Mach 2020.
The depreciation of dollar index is seen positive for foreign inflow to other countries like India. As this will magnify the return of investors. Since they will drive two benefits one rising market returns in other countries stock indices and also earn more return from falling dollar in compared to other currency.
This has lead to large foreign inflow in our country in last seven to eight months. This among other reasons can further fuel rally in Nifty. To take the benefit of this we have come out with few stocks that can be added in your portfolio and require average at every 5% dip.
- State Bank Of India: The stock has a support at around 250- 262 zones and resistance at 276 level. One can add the stock near 260-265 zones with immediate target of 276. Buy on dip or else let the resitance of 276 to 278 level breaks and than play for upside of 290 in near future.
- Reliance: The stock has a strong support at 1890 to 1900 level and near by resistance of 2040 to 2050. One can add this stock and current level and incase it falls further than buy more stocks to average near 1890 to 1900 level.
- Marico: The stock has strong support at Rs 385 to Rs 390. The stck can be bought at current level with target of Rs 420 to Rs 422 and incase this level breaks stock can rally to Rs 450 level. Keep a stop loss at 385 zone. Buy on every dip.