Indian benchmark indices continued to fall on Thursday triggered by the selling across the global market on the back of rising bond yields amid fewer rate cuts by the US Fed. BSE Sensex tanked 528.28 points, or 0.68 per cent, to end the session at 77,620.21. NSE's Nifty50 plunged 162.45 points, or 0.69 per cent, to settle at 23,526.50 for the day.
Some buzzing power stocks including CESC Ltd, Tata Power Company Ltd and Adani Power Ltd are likely to remain under the spotlight of traders for the session today. Here is what Ameya Ranadive, CMT, CFTe and Senior Technical Analyst at StoxBox has to say on these stocks ahead of Friday's trading session:
Adani Power | Avoid
Adani Power is trading below its 20, 50, 100, and 200-day EMAs, which reflects significant weakness in its technical structure. This consistent underperformance suggests that the stock is unable to gather any upward momentum in the current market environment. Adani Power is at a crucial support zone of Rs 495-485. This range has acted as a strong floor in the past, but the continued selling pressure suggests that the stock could test this level again. A decisive close below Rs 485 would likely attract fresh short positions, amplifying the bearish sentiment and paving the way for further downside. The next support levels could emerge much lower, intensifying the risks for traders holding long positions. Given the current technical setup, Adani Power remains in a no-trade zone.
Tata Power Company | Sell on rise
Tata Power has shown significant weakness after breaking down from the crucial Rs 400 level. The stock is currently below its 20, 50, 100, and 200-day EMAs, reflecting a strong bearish trend. This technical setup indicates that sellers are firmly in control, with no signs of recovery visible in the short term. The Rs 400 breakdown has triggered further weakness, and the stock is unable to sustain any upward momentum. Traders should avoid fresh buying at these levels, as the risk-to-reward ratio remains unfavorable. Tata Power is now a sell-on-rise candidate, meaning any short-term uptick is likely to face selling pressure.
CESC | Avoid
CESC is exhibiting significant weakness, trading below its 20, 50, and 100-day EMAs. The stock is, however, resting on its 200-day EMA at Rs 168, a critical support level. This level has been tested multiple times, and a close below Rs 168 could open the door to further downside, with the next major support at Rs 153. The stock’s inability to sustain above key moving averages indicates bearish sentiment. Sellers have dominated this counter, with minimal buying interest observed in the current market. If the 200-day EMA support is breached, it could trigger fresh selling pressure, leading to a deeper correction. For now, the stock remains in a no-trade zone as it lacks clear directional momentum. Traders should avoid taking any positions until the stock either bounces decisively from this support or reclaims its moving averages.