Domestic stock indices erased early losses to settle higher on Wednesday, taking the winning run to the third straight session. The 30-share pack BSE Sensex added 123.63 points, or 0.21 per cent, to 60,348.09. NSE’s Nifty gained 42.95 points, or 0.24 per cent, to 17,754.40.
Select stocks such as State Bank of India, Tata Steel and Infosys were on traders’ radar. Here is what Rohan Shah, Head Technical Analyst at Stoxbox has to say on these three stocks ahead of Thursday’s trading session:
State Bank of India | Buy | Target Price: Rs 590-620 | Stop Loss: Rs 550
State Bank of India Ltd (SBI) is seen trading in an upsloping channel, adjoining the lows of April 2021. The stock has formed a significant tops and troughs around the upper and lower band of the channel. Recently, the stock rebounded, hitting the lower end of the mentioned channel line. Also, around the similar juncture, the stock price completed a Bullish Reciprocal AB=CD Harmonic pattern. Furthermore, stock has staged a breakout from Double Bottom price pattern, hinting at a bullish bias in price. Thus, if the pattern unfolds well on the expected line, we believe, the stock price to head higher towards Rs 590-620 levels. The range of Rs 550-540, where 200-day EMA is placed at, may act as key support area.
Infosys | Hold | Target Price: Rs 1,590-1,660 | Stop Loss: Rs 1,450
Infosys Ltd tumbled 28 per cent from March 2022 to June 2022, where price dropped from Rs 1,920 to Rs 1,370 levels. Post hitting the low of Rs 1,370, the stock was seen trading sideways in a wide range, but with elevated lows. The stock is finding resistance around 38.20 per cent and 50 per cent retracement levels of its prior decline from Rs 1,950 to Rs 1,370. In the short-to-medium term, levels of Rs 1,590 and Rs 1,660 may act the critical resistance levels. The level of Rs 1,450 may act as an intermediate support for Infosys, followed by Rs 1,380.
Tata Steel | Cautious | Resistance: Rs 113-117 | Support: Rs 98-92
In the last 25 sessions, Tata Steel Ltd has declined more than 16 per cent, falling from Rs 124 to Rs 103 levels. In the near term, stock has a strong support zone at Rs 103-102 levels, which is backed by previous swing low and 50 per cent retracement levels of its prior whole up move from Rs 83 to Rs 124. Going ahead, if the stock holds the said support, a pullback towards Rs 113-117 cannot be ruled out. However, if the stock fails to hold the mentioned support zone, it is anticipated to continue its downmove. In that case, Tata Steel prices may fall towards Rs 98 and Rs 92 levels.
(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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