Indian benchmark indices rebounded from the mid-day jitters to settle higher on Wednesday. Both indices settled at record highs on a closing basis. However, broader markets witnessed some correction. BSE Sensex gained 255.83 points or 0.30 per cent, to end the session at 85,169.87. NSE's Nifty50 jumped 63.75 points, or 0.25 per cent, to close at 26,004.15 for the day.
Some buzzing power stocks including UltraTech Cement Ltd, Tata Motors Ltd and Reliance Industries Ltd (RIL) are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:
UltraTech Cement | Buy | Target Price: Rs 12,500 | Stop Loss: Rs 11,300
Ultratech recorded a peak in July 2024, thereafter it retraced 38.2 per cent of the previous rally off April 2024 low to July 2024 high. A series of ascending tops and bottoms on the weekly chart suggests a reversal move. The momentum indicator RSI further reinforces the bullish sentiment by consistently staying above the critical level of 60. Regarding support and potential gains, the stock has established a robust foundation at the lower end, around Rs 11,400-11,300 zone. Buy for a target of Rs 12,500 with stop loss of Rs 11,300.
Reliance Industries | Caution | Resistance: Rs 3,080 | Support: Rs 2,890
Reliance has been consolidating sideways for the past few days, showing no clear directional bias. On the daily chart, it has encountered significant resistance in the Rs 3,050-3,080 range. The repeated formation of doji candlestick patterns indicates market indecision. Conversely, a strong support base has formed around the Rs 2,890 level, near its 200-day SMA. Therefore, a decisive breakout in either direction is eagerly anticipated to establish a clear trend.
Tata Motors | Buy | Target Price: Rs 1,020 | Stop Loss: Rs 930
Tata Motors has experienced a gradual decline from Rs 1,142 to the Rs 949 level where it appears to be bottoming out and consolidating as indicated by the historical chart patterns on the daily chart. This zone serves as a strong support base. Additionally, the RSI is ascending after testing the line of the oversold zone on the daily chart suggesting potential for pullback move from its lower levels. Stock has decisively held support of Rs 940-950 zone, positive follow through action could show pullback move towards Rs 1,020 levels