Indian benchmark indices joined the global rally on Friday, triggered by the US Fed's rate cuts. Dalal Street is expecting a strong FIIs inflows amid the positive global outlook. BSE Sensex zoomed 1,359.51 points or 1.63 per cent, to end the session at 84,544.31. NSE's Nifty50 soared 375.15 points, or 1.48 per cent, to close at 25,790.95 for the day.
Some buzzing stocks including Bharat Electronics Ltd (BEL), Tata Steel Ltd and ITC 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 Monday's trading session:
ITC | Buy | Target Price: Rs 555 | Stop Loss: Rs 500
The share price of ITC has experienced a significant upward trend of nearly 40 per cent to achieve new record highs from the budget day low, reflecting a favorable primary trend. Presently, the short-term moving averages are serving as immediate support levels. The recent price structure exhibits a pattern of higher highs and higher lows, signifying positive momentum. Furthermore, the Relative Strength Index (RSI) across daily and higher timeframes is substantially above their respective medians, indicating robust momentum in the price. Consequently, we advocate acquiring ITC shares with a target price of Rs 555 and maintaining a stop loss at Rs 500.
Tata Steel | Avoid
The share price of Tata Steel has experienced a 22 per cent retracement to its key support level, indicating profit booking from its all-time high levels. However, there is evidence of the stock fluctuating around this support level, suggesting a decrease in selling pressure. Despite this, there are no clear signs of the stock reaching a bottom and preparing for a reversal. Consequently, we advise refraining from purchasing the stock at its current market price.
Bharat Electronics | Avoid
The share price of Bharat Electronics is currently exhibiting a distribution phase, indicating a negative trend in trading. This trend is reflective of selling pressure within the sectoral theme, leading to a loss in the stock's relative strength. Furthermore, the stock is trading below its 50-day moving average, which now serves as an immediate overhead resistance. Given these indicators, we advise against purchasing this stock at this time.