Indian benchmark indices managed to stage a smart recovery on Tuesday on the back of optimism over RBI's injection of liquidity and gains in the banking counters. Broader markets faced the wrath of bears. BSE Sensex rallied 535.24 points, or 0.71 per cent, to end the session at 75,901.41. NSE's Nifty50 jumped 128.10 points, or 0.56 per cent, to settle at 22,957.25 for the day.
Some buzzing stocks including Life Insurance Corporation of India (LIC), Maruti Suzuki India Ltd and Bharat Electronics Ltd (BEL) are likely to remain under the spotlight of traders for the session today. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:
Maruti Suzuki India | Support: Rs 11,400 | Resistance: Rs 13,000
Maruti Suzuki has broken out of a bottom formation on the longer timeframe with strong volume above Rs 11,550. After retesting the breakout level, it initiated a new rally towards Rs 13,000. However, it has been in a prolonged consolidation phase over the last 10 trading sessions, fluctuating within the range of Rs 12,200–11,850. A breakout above Rs 12,200 could pave the way for a move towards Rs 13,000 in the short term, while Rs 11,400 remains a key support level on the downside. The overall structure appears promising for long-term investors, as the stock continues to trade above all major moving averages.
Bharat Electronics | Support: Rs 250-240 | Resistance: Rs 280-300
Bharat Electronics is in long consolidation and also formed lower lows and lower highs in the last few trading sessions. The overall structure is looking distorted as it trades below its all-important moving averages; however, it is having a demand zone near 250. On the upside, Rs 280 has become an immediate resistance area; above this, we can expect a run-up towards over 300 levels in the near term. On the downside, if it breaks the Rs 250 level, then Rs 240 is the next support level.
Life Insurance Corporation of India | Support: Rs 800-700 | Resistance: Rs 860-900
LIC's chart indicates a structurally weak counter that has broken down from a double top pattern on the longer time frame. A retest of the breakdown level further confirms bearish momentum. In the daily time frame, the counter is forming a series of lower lows and lower highs, signalling a continued downtrend. Additionally, the counter is trading below all key moving averages, reinforcing the negative sentiment. A slip below the critical support at Rs 800 could trigger a sharp decline, with short-term targets around Rs 700. On the upside, any recovery may face resistance near the Rs 860 level, where the 20 DMA is positioned. A breakout above this level could prompt short covering, pushing the counter toward the next resistance zone at Rs 900.