Indian benchmark indices settled lower on Wednesday, but managed to post a decent recovery from day’s low as the slow economic growth projections weighed on the market sentiments ahead of Q3 results. BSE Sensex shed 50.62 points, or 0.06 per cent, to end the session at 78,148.49. NSE’s Nifty50 fell 18.95 points, or 0.08 per cent, to settle at 23,688.95 for the day.
Some buzzing stocks including One 97 Communications Ltd (Paytm), Tata Motors Ltd and Cipla Ltd are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Senior Manager – Technical Research at YES Securities has to say on these stocks ahead of Thursday’s trading session:
Cipla | Hold | Resistance: Rs 1,550-1,700 | Support: Rs 1,400
Cipla is facing resistance near its recent high of Rs 1,550. Last week’s trading session formed a ‘Gravestone Doji’ candlestick pattern on the weekly chart, precisely at the key resistance zone near the 20-week SMA. Despite this, the stock has solid support at Rs 1400. A positive outlook remains valid as long as it stays above Rs 1,400. A breakout above Rs 1,550 could drive the stock higher towards Rs 1,700.
One97 Communications | Avoid | Resistance: Rs 990 | Support: Rs 840
Paytm had a possible exhaustion in its upward momentum after reaching its peak. It has breached its 20-day and 50-day SMA’s. A violation of these levels typically suggests that the stock’s upward momentum has weakened, further confirming a bearish outlook. On the indicator front, the daily RSI has dropped below the 50 level, indicating that selling pressure is dominating, suggesting that Paytm could see further downside in the upcoming sessions unless a reversal or strong buying interest emerges.
Tata Motors | Buy | Target Price: Rs 860 | Stop Loss: Rs 760
Tata Motors has undergone a significant 39 per cent correction from its peak of Rs 1,179 over the past five months, reaching oversold territory. Recent trading sessions, however, suggest a potential reversal, marked by a steady recovery. Importantly, the stock has moved above its 20-day and 50-day SMAs after a prolonged period, indicating a positive shift in momentum. With these factors in play, the stock now offers an attractive risk-reward opportunity. A breakout from four days of consolidation above Rs 800 on the daily chart could propel the rally toward Rs 850 with a downside stop loss at Rs 760.
