Indian benchmark indices took a breather on Friday and settled lower in the fag-end profit booking by the traders after the recent rally. Traders are awaiting Q2 earnings seasons by India Inc due next month. BSE Sensex dropped 264.27 points or 0.31 per cent, to end the session at 85,571.85. NSE's Nifty50 shed 37.10 points, or 0.14 per cent, to close at 26,178.95 for the day.
Some buzzing stocks including Bharat Heavy Electrical Ltd (BHEL), Zomato 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, Sr Technical Analyst at StoxBox has to say on these stocks ahead of Monday's trading session:
Bharat Heavy Electrical | Hold | Target Price: Rs 315
BHEL has delivered a remarkable tactical bounce. It faces key resistance between Rs 290 and Rs 285. Sustaining above this level will be critical for the stock's next move. If it manages to hold these levels, BHEL could see further gains, potentially moving toward the Rs 315 mark in the short term. However, a failure to sustain could push the stock back into consolidation. Technically, BHEL is well-positioned, trading above its key moving averages (20, 50, 100, and 200-day EMAs), signaling a strong upward trend. The RSI currently stands at a healthy 57, indicating there is still room for more upside without entering overbought territory. Investors should keep a close watch on how BHEL handles the resistance zone. A breakout could lead to significant gains, while a failure to sustain may bring it back into consolidation.
Zomato | Buy | Target Price: Rs 320
Zomato has been in an upward-moving channel since June, consistently finding support at lower levels, which points to a solid underlying trend. The ADX is at 37, showing robust trend strength, while the RSI is at a comfortable 59, suggesting the stock is not yet overbought and has room for further upside. Importantly, Zomato is trading above its key EMAs 20, 50, 100, and 200 indicating strong momentum. The 20-day EMA, in particular, has acted as a solid support level during pullbacks, which further strengthens the bullish outlook. If the stock continues to follow this upward trajectory, Zomato could potentially target Rs 320 in the near term. The positive trend is well-supported by both technical indicators and strong price action. As long as the stock holds above its key moving averages, the upward trend is likely to remain intact. Investors may consider buying on dips, with Rs 320 as a near-term target. However, any breakdown below the 20 EMA could serve as an early warning of a possible trend reversal.
Adani Power | Cautious
Adani Power is currently consolidating in a tight range between Rs 700-620, signaling indecision among traders. The stock faces significant resistance at the 20, 50, and 100-day exponential moving averages (EMAs), which are acting as barriers to further upward momentum. Despite this, the stock remains in a 'no-trade zone' for now, making it a candidate for a buy-on-dips strategy. The technical picture would turn bearish only if Adani Power closes below Rs 611, which would signal a potential downside move. On the upside, a sustained close above Rs 720 could mark the beginning of a strong bullish phase, with potential targets of Rs 780 and higher. Such a breakout would signal renewed buying interest and could attract momentum traders. Until then, the stock is likely to remain range-bound. Investors are advised to wait for confirmation before taking any positions. A breakdown below Rs 611 would invalidate the bullish thesis, while a breakout above Rs 720 would confirm the next leg of the rally.