Domestic stock indices extended their weakness for another trading session and settled lower on Tuesday ahead of the RBI’s monetary policy outcome later on Wednesday. The BSE Sensex fell 220.86 points, or 0.37 per cent, to 60,286.04. Nifty declined 43.10 points, or 0.24 per cent, to 17,721.50 for the day.
Select stocks such as Adani Green Energy, Ambuja Cement and Bharti Airtel were on traders’ radar. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on the three stocks for Wednesday’s trading session:
Bharti Airtel | Hold | Resistance: Rs 800-820 | Support: Rs 745
Bharti Airtel’s long-term structure is very positive. The stock has witnessed a breakout of a long consolidation formation on the daily chart, while it has formed a base at around the 200-SMA. The structure is very impressive, as the stock trades above the 9-, 20-, and 200-SMA. The crucial psychological resistance level on the upside is Rs 800 level, above which we can expect the Rs 820 level in the near future. On the downside, Rs 745 is the major support level for the stock.
Ambuja Cements | Hold | Resistance: Rs 420-450 | Support: Rs 345
The stock has witnessed a breakdown of Head & Shoulder pattern formation on the weekly chart. The overall structure is distorted as the stock trades below its all-important moving averages. It, however, is having a demand zone near Rs 345. On the upside, Rs 420 is an immediate susceptible area; above this, we can expect a run-up towards the Rs 450 level in the near term.
Adani Green Energy | Avoid
The stock has broken out of a descending triangle formation on the shorter as well as longer timeframes, with strong volume. The overall structure is much distorted, as the stock trades below its 100- and 200-day SMAs, and the momentum indicators are also negatively poised. Traders can stay away from the counter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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