Buy Suzlon Energy, Tata Steel shares; avoid Bajaj Finance stock, says Anand Rathi

Buy Suzlon Energy, Tata Steel shares; avoid Bajaj Finance stock, says Anand Rathi

An analyst from Tata Steel said that Tata Steel experienced a violation of a key bearish trendline on the charts, indicating a potential reversal in momentum from its previous downtrend.

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Suzlon may be overextended in the short term, raising the possibility of a reversion to the mean- a scenario where the stock could pull back to its average price levels, said the analyst.Suzlon may be overextended in the short term, raising the possibility of a reversion to the mean- a scenario where the stock could pull back to its average price levels, said the analyst.
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Pawan Kumar Nahar
  • Sep 17, 2024,
  • Updated Sep 17, 2024 7:13 AM IST

Indian benchmark edged up marginally after a range-bound trading session on Monday, ahead of the US Fed's policy meeting outcome due later this week. BSE Sensex added 97.84 points or 0.12 per cent, to end the session at 82,988.78. NSE's Nifty50 gained 27.25 points, or 0.11 per cent, to close at 25,383.75 for the day.

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Some buzzing stocks including Suzlon Energy Ltd, Tata Steel Ltd and Bajaj Finance Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Senior Manager - Technical Research Analyst, at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:

 

After an impressive and uninterrupted rally in Bajaj Finance, resulted in remarkable gains. The upward momentum came to a halt in the most recent trading session. It formed a bearish engulfing pattern on the daily chart, a strong reversal signal where the selling pressure completely overshadows the previous day's gains, indicating a potential shift in sentiment. Additionally, there is a bearish divergence on the Daily RSI, where the RSI starts to decline even as the price continues to rise, signalling weakening momentum and the possibility of a correction. This divergence, coupled with the bearish engulfing pattern, raises concerns about the sustainability of the recent rally. Given these developments, a cautious 'wait and watch' approach is advised. It is prudent to avoid making long positions in Bajaj Finance unless the crucial support level of Rs 7,200 is tested and holds firm, as a break below this level could signal further downside.

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.

Indian benchmark edged up marginally after a range-bound trading session on Monday, ahead of the US Fed's policy meeting outcome due later this week. BSE Sensex added 97.84 points or 0.12 per cent, to end the session at 82,988.78. NSE's Nifty50 gained 27.25 points, or 0.11 per cent, to close at 25,383.75 for the day.

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Related Articles

 

Some buzzing stocks including Suzlon Energy Ltd, Tata Steel Ltd and Bajaj Finance Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Senior Manager - Technical Research Analyst, at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:

 

After an impressive and uninterrupted rally in Bajaj Finance, resulted in remarkable gains. The upward momentum came to a halt in the most recent trading session. It formed a bearish engulfing pattern on the daily chart, a strong reversal signal where the selling pressure completely overshadows the previous day's gains, indicating a potential shift in sentiment. Additionally, there is a bearish divergence on the Daily RSI, where the RSI starts to decline even as the price continues to rise, signalling weakening momentum and the possibility of a correction. This divergence, coupled with the bearish engulfing pattern, raises concerns about the sustainability of the recent rally. Given these developments, a cautious 'wait and watch' approach is advised. It is prudent to avoid making long positions in Bajaj Finance unless the crucial support level of Rs 7,200 is tested and holds firm, as a break below this level could signal further downside.

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.
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