Indian benchmark indices kicked off the week on a muted note and settled mixed on Monday on the back of profit booking. However, the global cues remained largely positive but selling pressure in select sectors curbed the rise. BSE Sensex shed merely 12.16 points, or 0.02 per cent, to end the day at 80,424.68. NSE's Nifty50 jumped 31.50 points, or 0.13 per cent, to close at 24,572.65 for the day.
Some buzzing stocks- Larsen & Toubro Ltd (L&T), Adani Ports & Special Economic Zone Ltd (Adani Ports & SEZ) and Bharat Heavy Electricals Ltd (BHEL) are likely to remain under the spotlight of traders for the session today. Here is what 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:
Larsen & Toubro | Avoid
L&T recently formed a triple top near the Rs 3,900 mark, a bearish pattern indicating strong resistance at that level. Following this, the stock has declined by nearly Rs 300, resulting in an 8.5 per cent drop in price. Currently, L&T has found support around the Rs 3,500 level. However, for the stock to resume its upward momentum, it needs to achieve a decisive close above Rs 3,650. Given the current situation, it is advisable to adopt a wait-and-watch approach and avoid making long bets until a clearer breakout occurs.
Adani Ports & Special Economic Zone | Buy | Target Price: Rs 1,550 | Stop Loss: Rs 1,470
Adani Ports is showing strong positive momentum, consistently trading above its 50-day exponential moving average (DEMA) and the Ichimoku Cloud, both of which signal a bullish trend. Additionally, the relative strength index (RSI) has formed an impulsive structure near the 40 level, indicating potential for further upside. Given these favorable technical indicators, buying Adani Ports in the 1490-1500 range is advisable, with a target of 1550 and a stop-loss at 1470 on a daily closing basis, offering a favorable risk-reward ratio.
Bharat Heavy Electricals | Avoid
BHEL is currently experiencing significant resistance levels, which are acting as barriers to its upward momentum. Specifically, the stock has encountered resistance at both the 9-day and 21-day Exponential Moving Averages (EMAs), which are commonly used indicators to gauge short-term trends. Additionally, BHEL is facing resistance from the leading Span A of the Ichimoku Cloud, a comprehensive technical analysis tool that identifies support and resistance levels, trend direction, and momentum. The RSI is trading below the 50 mark on the daily chart, which indicates that the stock is in a bearish phase, with sellers having the upper hand. Given these factors, there is a likelihood that BHEL may decline further in the coming sessions, potentially testing the leading Span B of the Ichimoku Cloud, which serves as a support level around the Rs 280 mark. Considering these technical signals, it is advisable to adopt a cautious approach and avoid taking long positions in BHEL at this time.
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