Indian benchmark indices gave up mid-day gains and settled lower on Wednesday amid a slew of sluggish Q2 earnings by India Inc and record breaking selling from FIIs. Global cues, also, failed to support the sentiments. BSE Sensex dropped 138.74 points or 0.17 per cent, to end the session at 80,081.98. NSE's Nifty50 fell 36.60 points, or 0.15 per cent, to close at 24,435.50 for the day.
Some buzzing blue-chip stocks including Coal India Ltd, Hindalco Ltd and JSW Steel Ltd are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Senior Manager- Technical Research at YES Securities has to say on these stocks ahead of Thursday's trading session:
Hindalco | Buy | Target Price: Rs 775 | Stop Loss: Rs 685
Hindalco has experienced a sharp correction from its recent peak, reaching a key support zone around the 38.2 per cent Fibonacci retracement level, measured from the lows of Rs 609 to Rs 772 on the daily chart. This pullback has brought technical indicators into oversold territory, signaling a potential reversal. The price action around these support levels indicates an early upward move, offering a favorable risk-reward opportunity. Additionally, the appearance of bullish momentum after a two-day decline signals a pause in the downtrend. Therefore, we recommend accumulating Hindalco around Rs 714-718, with a stop loss at Rs 685 and a target of Rs 775.
JSW Steel | Range-bound | Resistance: Rs 990 | Support: Rs 930
JSW Steel has recently seen profit-taking following a price peak with a downward trend over the past three trading weeks. It is approaching a key support zone near the 100-day SMA and 20-week SMA on daily and weekly charts. Technical indicators present mixed signals; while a bearish RSI points to potential downside pressure, strong support at these moving averages suggests the possibility of a pullback. This creates uncertainty about the stock's near-term direction. However, there is firm support in the Rs 945-930 range and if this holds, a short-term rebound to Rs 990 could be expected though significant upside momentum appears limited for now.
Coal India | Buy | Target Price: Rs 510 | Stop Loss: Rs 450
Coal India has recently seen a significant decline from its peak of Rs 568, approaching the 200-SMA on the daily chart, a level that has historically acted as strong support, often leading to a robust rebound. In the past few trading sessions, the stock has started gaining momentum, reinforcing this historical trend. From a technical standpoint, indicators have bounced back from oversold conditions, showing a pullback move, which signals the potential for a bullish reversal in the stock. Hence, we recommend Buying in COALIND around Rs 468-472, keeping a stop loss of Rs 450 on a closing basis for an upside target of Rs 510.