Dalal Street snapped a two-day winning streak on Thursday and settled lower. The fag-end selling pressure amid the weekly F&O expiry dragged the indices lower. The BSE barometer Sensex shed 290 points, or 0.50 per cent, to 57,925.28. The NSE Nifty dropped 75 points, or 0.44 per cent, to settle at 17,076.90.
Select stocks such as Sun Pharmaceuticals, Vedanta and Infosys were on traders’ radar. Here is what Rohan Shah, Head Technical Analyst at Stoxbox has to say on these stocks ahead of Friday’s trading session:
Sun Pharmaceuticals | Hold above Rs 950 | Upside: 8%
Sun Pharma witnessed a breakdown from the Double Top pattern on lower volume. A 11 per cent decline in Sun Pharma shares from all-time high level was arrested near the support zone of Rs 952-946, which was marked by pivotal support and 200-DMA. The price action has now observed a lateral intermediate trend and Wednesday’s move indicates that the buyers are now attempting to garner bullish strength. One can expect a potential upside of 8 per cent, provided the level of Rs 950 remains intact on a closing basis.
Vedanta | Buy above Rs 295 | Target Price: Rs 340
VedanataтАЩs price action suggests the stock is trading in Stage 3 of the distribution phase. The recent sideways trend incepted on February 28 has come on a relatively higher volumes, with shorter-term EMAs acting as an overhead resistance. The initial long opportunity can come on price action crossing above Rs 295 while a positive trajectory is anticipated on a close above Rs 340 level.
Infosys | Cautious | Target Price: Rs 1,355 | Stop Loss: Rs 1,300
InfosysтАЩ price action indicates that it is trading in a distribution phase. The stock is potentially trading in a Triple Top pattern formation, with a multi-month negative sloping relative strength compared with Nifty. This insinuates a lack of strength in the price action. It has pattern support at Rs 1,355 level and 200-week EMA near Rs 1,300 level. It will be crucial for the price action to sustain above this support zone to attract bullish strength.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Also read: SGX Nifty sheds 39 points: Asian markets, dollar movement, crude prices, FPI flows & more
