Fibonacci retracement is a technical analysis tool used to identify potential support and resistance levels during a stock’s price correction. It is based on key Fibonacci ratios like 50% and 61.8%. These levels help traders predict where a price may pause or reverse before continuing its trend, and it’s widely used to plan entry and exit points.
These levels, widely used in technical analysis, often act as crucial points where price corrections end and new trends begin. When a fundamentally solid stock backed by consistent earnings, low debt, and strong growth potential aligns with such technical support, it can offer a compelling entry opportunity for investors.
The stocks to watch out for are listed below
Coal India Limited
Coal India Limited is a government-owned company and the world’s largest coal producer. It is responsible for the majority of coal mining operations in India, meeting over 80 percent of the nation’s coal demand. The company plays a critical role in supporting the country’s energy and industrial sectors.
With a market capitalization of Rs. 2,41,578.95 crores as of Friday, the stock closed at Rs. 392.10 per share. It is currently taking support at the 0.6 Fibonacci retracement level, positioned at Rs. 347.35 on the weekly time frame, and is trading at a 28 percent discount from its all-time high.
Tata Power Limited
Tata Power is one of India’s largest integrated power companies, operating across the entire power value chain, including generation, transmission, distribution, and renewable energy. The company has a strong focus on clean and sustainable energy, with significant investments in solar, wind, and EV infrastructure.
With a market capitalization of Rs. 1,16,470.13 crores as of Friday, the stock closed at Rs. 364.50 per share. It is currently taking support at the 0.6 Fibonacci retracement level, positioned at Rs. 332.45 on the weekly time frame, and is trading at a 26 percent discount from its all-time high.
Bharat Dynamics Limited
Bharat Dynamics Limited is a government-owned defense company specializing in the manufacture of guided missiles and allied defense equipment. It plays a key role in India’s defense sector and works closely with the Ministry of Defence and DRDO. BDL supports India’s self-reliance in missile technology.
With a market capitalization of Rs. 48,518.21 crores as of Friday, the stock closed at Rs. 1323.60 per share. It is currently taking support at the 0.6 Fibonacci retracement level, positioned at Rs. 958.65 on the weekly time frame, and is trading at a 25 percent discount from its all-time high.
Angel One Limited
Angel One is a leading retail stockbroking and financial services company in India. It offers services like online trading, mutual funds, insurance, and advisory through a digital-first platform. With a strong client base, Angel One is known for its tech-driven solutions in the broking industry.
With a market capitalization of Rs. 20,407.36 crores as of Friday, the stock closed at Rs. 2260.10 per share. It is currently taking support at the 0.6 Fibonacci retracement level, positioned at Rs. 2089 on the weekly time frame, and is trading at a 42 percent discount from its all-time high.
Written by Sridhar J
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