Hot Stocks | BPCL, Birla Corp, Ircon may give up to 9% return in the next 3-4 weeks

Indian indices reversed after filling the runaway gap which was created on January 9. Benchmark index Nifty broke the two-day losing streak and ended higher but off day's high on the back of buying seen in the select metal, FMCG and auto stocks.

After showing weakness in the last couple of sessions, Nifty witnessed a decent upside today and closed the day higher. A small body of a positive candle was formed which is within a body of the previous day's candle.

Nifty is currently trapped in a range of 120 points which is bounded by the 21 and 50-day exponential moving averages, which indicates range-bound trading in Indian indices.

Ahead of January 2020 expiry and the Union Budget, volatility will be on its peak so trading with a lighter position with strict stop loss is essential. Creating any big position ahead of Union Budget without proper stop loss can be hazardous to your pocket.

Bank Nifty, after retesting the neckline of head & shoulder pattern, has again drifted below its neckline and is looking weak. PSU banks are likely to underperform the banking index.