Indian benchmark indices managed to rebound from early cuts to settle flat on Monday amid muted Q3 earnings and persistent FII selling. Weak rupee and tariff tantrums is also adding to the investors caution. BSE Sensex added 57.65 points, or 0.08 per cent, to end the session at 75,996.86. NSE's Nifty50 gained 30.25 points, or 0.13 per cent, to settle at 22,959.50 for the day.
Some buzzing capital goods stocks including Bharat Heavy Electricals Ltd (BHEL), Cummins India Ltd and ABB India Ltd 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 about these stocks ahead of Tuesday's trading session:
ABB India | Buy | Target Price: Rs 6,000 | Stop Loss: Rs 4,650
ABB India is approaching the completion of a bullish bat pattern near the Rs 4,900-5,150 level, which suggests a potential reversal zone. Additionally, the RSI is near the oversold area, indicating the possibility of an upward bounce. Considering these technical signals, a buying opportunity is suggested within the Rs 5,000-5,200 range. The target for this trade is set at Rs 6,000, reflecting a favourable risk-reward ratio. To manage risk, a stop-loss is recommended below Rs 4,650 on a daily closing basis. This strategic approach combines harmonic pattern recognition with momentum analysis, enhancing the potential for a successful trade setup.
Bharat Heavy Electricals | Buy | Target Price: Rs 222 | Stop Loss: Rs 176
BHEL formed a bullish engulfing pattern near a support level, accompanied by RSI bullish divergence, signaling a potential trend reversal. Following this, the stock rallied by 10 per cent before experiencing a pullback. Notably, the low of the bullish engulfing pattern has remained intact, supported by the formation of multiple hammer candlesticks, which indicates buying interest at lower levels. This price action occurred just above the S3 Camarilla support pivot, enhancing the reliability of the support zone. Considering these bullish signals, a buying opportunity is suggested in the Rs 190-193 range, targeting a move towards Rs 222. A stop-loss should be placed below Rs 176 on a daily closing basis to manage risk effectively.
Cummins India | Buy | Target Price: Rs 3,000 | Stop Loss: Rs 2,550
Cummins is currently taking support near its breakout zone, which aligns with the 0.618 per cent Fibonacci retracement level and the S4 Camarilla pivot support. This confluence of technical support strengthens the possibility of a rebound. Additionally, a bullish RSI divergence is observed, indicating slowing bearish momentum and a potential reversal. These factors make the stock an attractive buying opportunity. It is recommended to buy within the Rs 2,675-2,735 range, targeting a move towards Rs 3,000. To manage risk effectively, a stop-loss should be placed below Rs 2,550 on a daily closing basis. This strategy leverages multiple technical indicators for a high-probability trade setup.