Day trading guide: Two stock recommendations for Thursday SECTIONS Last Updated: Jan 27, 2021, 05:06 PM IST Share Synopsis Nifty took support at the 50% Fibonacci retracement level at 13,940. Now a sustained trade beyond 14,070 may trigger a short covering rally, taking it higher to levels of 14,250-14,310. Agencies Aditya Agarwala, YES Securities Benchmark index Nifty witnessed a 300-point cut after a weak start to the trading session ahead of the F&O expiry and the much-awaited Union Budget. Further, bears kept pushing the index lower at every minor rise to shut shop below the 14,000-mark. Nifty has now lost 5.60% from the highs of 14,750. However, following this relentless selling by the bears, the index has now reached oversold territory on shorter time frame charts along with positive divergence on the RSI, indicating that a short covering rally may be witnessed in the coming trading session. Moreover, Nifty took support at the 50% Fibonacci retracement level at 13,940. Now a sustained trade beyond 14,070 may trigger a short covering rally, taking it higher to levels of 14,250-14,310. A breach of 13,900, however, will extend the weakness to levels of 13,750.