Indian benchmark indices kicked off the week on a muted note and the weakness intensified amid the rising selling pressure. A slew of dull India Inc results and geopolitical volatility is hurting richly priced Indian markets. BSE Sensex crashed 941.88 points or 1.18 per cent, to end the session at 78,782.24. NSE's Nifty50 tumbled 309 points, or 1.27 per cent, to close at 23,995.35 for the day.
Some buzzing stocks including Cipla Ltd, Titan Company Ltd and Bharat Electronics Ltd (BEL) are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst, at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:
Titan Company | Caution
Titan broke below its bullish trendline last month, raising concerns about its upward momentum. The stock has seen a steep decline over the past two months, with the weekly RSI falling below the 50 level, suggesting a weakening trend and diminished buying strength. Given these bearish signals, it may be prudent to adopt a cautious stance. Watching the stock for a few sessions to see if it can hold above the Rs 3,150 level could provide more clarity. If Titan sustains above this level for 2-3 sessions, it might indicate a stabilizing support zone, offering a more reliable entry point.
Bharat Electronics | Buy | Target Price: Rs 315 | Stop Loss: Rs 265
BEL entered a corrective phase after reaching a high of approximately Rs 340 in July 2024, characterized by a downtrend with consistently lower highs and lower lows. This pattern led to a significant price decline, as the stock corrected by around 83 points, translating to a drop of approximately 24 per cent from its peak. Recently, however, BEL has shown signs of stabilizing, finding support around its 200-DEMA, a key indicator of long-term trend support. Additionally, it has managed to break above a downward trendline that had restrained its price for about five months, signalling a potential shift in momentum. The daily RSI has also moved above 50, which is typically seen as a bullish signal, reinforcing the positive outlook. Based on these indicators, we advise initiating a long position in the price range of Rs 280-284, with a target of Rs 315, and a stop-loss at Rs 265 on a daily closing basis to manage risk.
Cipla | Caution
Cipla encountered resistance around the Rs 1,587 price level in the previous trading session, which corresponds to the 61.8 per cent Fibonacci retracement of its prior downtrend. This level is significant as it not only represents a common Fibonacci resistance zone but also aligns with a previous support level that has now turned into resistance, reinforcing its strength as a barrier. Given this technical setup, we recommended booking partial profits at this level to lock in gains while waiting for a potential pullback. This cautious approach allows room to re-enter if the stock retraces and provides a better entry opportunity.