Indian benchmark indices kicked off the week on muted note, settling marginally lower, brushing aside the latest round of allegations by the US-based short seller Hindenburg Research and Adani Group and SEBI Chief. Positive global sentiment supported the sentiments. BSE Sensex declined 56.99 points, or 0.07 per cent, to end the day at 79,648.92. NSE's Nifty50 dropped 20.50 points, or 0.08 per cent, to close at 24,347 for the day.
Some buzzing stocks namely ITC Ltd, ICICI Bank Ltd and Infosys Ltd are likely to remain under the spotlight of traders for the session today. Here is what By Jigar S Patel, Senior Manager - Equity Research at Anand Rathi Shares & Stock Brokers has to say on these stocks ahead of Tuesday's trading session:
ITC | Book Profit
At the current market level, ITC is trading significantly above its major key exponential moving averages (DEMA) for the 21-day, 50-day, and 100-day periods. This situation indicates that the stock has experienced a strong upward momentum recently. However, trading far above these critical averages can often make the stock vulnerable to a pullback, as it suggests that the price might be overextended or overbought in the short term. While ITC may continue to rise and potentially reach the Rs 500-510 range in the coming sessions, this level is seen as a strong resistance zone. Therefore, it is advisable for investors to consider booking profits if the stock enters this price range, rather than taking aggressive long positions. The strategy here is to lock in gains while the stock is near its potential peak, reducing the risk of losses if the anticipated pullback occurs.
ICICI Bank | Buy | Target Price: Rs 1,250 | Stop Loss: Rs 1,130
At the current juncture, ICICI Bank has found support within its previous breakout range and has maintained this level for the past three sessions. Additionally, an alternate bullish BAT pattern has formed on the daily chart precisely within this support zone of Rs 1,165-1,175, making the stock an attractive buy at these levels. This technical setup suggests a strong potential for upward movement. Therefore, we recommend buying ICICI Bank in the price range of Rs 1,165-1,175. The potential upside target is set at Rs 1,250, while a stop-loss should be placed near Rs 1,130 on a daily closing basis to manage risk effectively.
Infosys | Book Profit
In the past two months, Infosys has experienced a significant price surge of nearly Rs 550, resulting in an impressive 40 per cent return. This substantial increase has pushed the stock price well above all major key moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (DEMA). Trading significantly above these levels indicates that the stock may be overextended and potentially prone to a pullback. In such scenarios, there is a heightened risk of a price correction as investors may begin to take profits, leading to selling pressure. Consequently, we advise against initiating new long positions in Infosys at this elevated level. For those who have already invested, it would be prudent to consider booking profits to lock in gains in the zone of Rs 1,820-1,840, as the current overbought condition suggests a possible decline in the stock price in the near term.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.