Domestic stock indices settled higher on Wednesday, breaking an eight-day losing streak, thanks to strong global cues. The BSE Sensex advanced 448.96 points, or 0.76 per cent, to 59,411.08. The NSE barometer Nifty rose 146.95 points, or 0.85 per cent, to 17,450.90.
Select stocks such as State Bank of India (SBI), Tata Steel and Infosys were on traders’ radar on Wednesday. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks, ahead of Thursday’s trading session:
State Bank of India | Buy | Target Price: Rs 580 | Stop Loss: Rs 499
State Bank of India Ltd (SBI) looks lucrative after showing a correction around 20 per cent, post registering a high of Rs 630 on December 15, 2022. At present, the stock has given congestion breakout while forming a Bullish Belt Hold candlestick pattern on the daily chart. A positive crossover on the daily MACD and the RSI suggesting bullish implication. We are expecting a solid base formation around Rs 500-505 zone. If the scrip sustain the above our mentioned range, one can go long for the target of Rs 580 and Rs 600, with a stop loss placed below Rs 499 on a closing basis.
Tata Steel | Caution | Resistance: Rs 110 | Support: Rs 100
Tata Steel Ltd has fallen 17 per cent from its swing high in the last few weeks. The sharp selloff has pushed the stock to its multi-month support zone, near which the 200-day moving average is placed. Going ahead, if the support range of Rs 103-100 is respected, a bounce shall be expected towards Rs 120-125 levels after crossing above the Rs 110 level. This is where the immediate resistance stands. On the flip side, a failure to hold the support would weaken the stock further and it can slip till Rs 95-85 levels.
Infosys | Rangebound | Resistance: Rs 1,540 | Support: Rs 1,440
Infosys Ltd has been falling continuously with lower highs and lower lows, post negative crossovers of 100- and 50 day-simple moving averages. At the same time, the MACD histogram hovers in the negative territory. RSI and stochastic have bounced back from oversold zone. Overall, daily charts are sending mixed signals. Until the stock gives a decisive closure above Rs 1,525-1,540, there is a possibility of rangebound move on the counter. Till then, the levels of Rs 1,440 could act as support for Infosys.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Also read: New-age tech stocks: Paytm, Zomato shares in focus. Here’s what investors should know
Also read: Adani Total Gas shares end 20-day losing streak; what should investors do?