Domestic equity market snapped a three-day winning streak to settle sharply lower on Thursday amid unfavourable global cues. The 30-share pack BSE Sensex tanked 541.81 points, or 0.90 per cent, to 59,806.28. NSE’s Nifty50 fell 164.80 points, or 0.93 per cent, to 17,589.60.
Select stocks including YES Bank, Reliance Industries and ITC were on traders’ radar. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of the Friday’s trading session:
ITC | Hold | Target Price: Rs 400-420 | Stop Loss: Rs 377-370
ITC’s stock is in a classical bull run, It witnessed a breakout of long consolidation above Rs 388 level. It is making higher high-low formations. The overall structure is remunerative, as the stock trades above its all-important moving averages. On the upside, the level of Rs 400 is the susceptible area, above which one can expect the level of over Rs 420 in the extended timeframe. On the downside, Rs 377 is a major support in any correction; Rs 370 is the next critical demand level. MACD supports the current strength while the momentum indicator RSI is also positively biased.
Reliance Industries | Buy | Target Price: Rs 2,800-3,000 | Stop Loss: Rs 2,300-2,150
Reliance Industries Ltd is facing a trend-line resistance at around Rs 2,400 level on the daily chart. It retested its breakout levels of Rs 2,300, and it made a base formation around it. The structure looks good for long-term traders, as Rs 2,300-2,400 is a strong demand zone from where one can take positions for Rs 2,800 levels; above this, we can see a new leg of rally towards Rs 3,000 level. On the downside, Rs 2300 is the major support. Below this, Rs 2,150 is the next support level.
YES Bank | Avoid | Resistance: Rs 18 | Support: Rs 15.50
YES Bank Ltd is trading near its 200-SMA of Rs 16. The structure of the counter is distorted, as it is trading above all its important moving averages. On the higher side, Rs 18 is acting as an important psychological level; above this, we can expect the level of Rs 19 and above in the near-short term. On the lower side, Rs 15.50 will act as a major support during any correction. Traders should avoid taking positions in this 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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