Indian benchmark indices settled with sharp cuts during the trading session on Thursday after the RBI's monetary policy outcome where it cautioned to revise upward the CPI and moderate the growth forecast for Q1. BSE Sensex tanked 581.79 points, or 0.73 per cent, to end the day at 78,886.22. NSE's Nifty50 tumbled 180.50 points, or 0.74 per cent, to close at 24,117.00 for the day.
Some buzzing stocks namely Adani Power Ltd, ITC Ltd and Tata Motors Ltd are likely to remain under the spotlight of traders for the session today. Here is what Kushal Gandhi, Technical Analyst at StoxBox has to say on these stocks ahead of Friday's trading session:
ITC | Buy | Target Price: Rs 535 | Stop Loss: Rs 476
The price action of ITC recently experienced some minor profit booking after a bullish breakout from a rounding bottom pattern on July 23. As a result, the price retraced to the breakout zone and is now showing a steady pullback from that zone. Additionally, the RSI across daily and higher time frames are trading well above their medians, indicating strong momentum in the price. We recommend buying ITC with a target price of Rs 535 and a protective stop loss at Rs 476.
Tata Motors | Buy | Target Price: Rs 1,120 | Stop Loss: Rs 997
Tata Motors' price movement retreated below its breakout zone due to profit booking following a 22% surge from its lows on July 23. The retracement was contained by the 50-day moving average, which now functions as immediate support and presents a favourable opportunity for a low-risk entry. We recommend purchasing Tata Motors with a target price of Rs 1,120 and a stop loss of Rs 997.
Adani Power | Avoid
The price of Adani Power has been experiencing persistent downward pressure and has failed to exhibit upward momentum subsequent to the announcement of the Union Budget. Consequently, its price action has displayed a negative trend. The stock has demonstrated weaker relative strength in comparison to the broader market and EPS strength. Consequently, it is advisable to consider purchasing the stock subsequent to the manifestation of confirmation through follow-through.
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.