Indian equity markets ended on a muted note on Wednesday amid mixed global cues. Sectoral rotation led by Q4 earnings gave a breather to headline indices after recent consolidation. BSE Sensex shed merely 45.46 points, or 0.06 per cent to settle at 73,466.39. NSE's Nifty50 index ended with no change at 22,302.50, the level of its previous close.
Some buzzing stocks namely Hero MotoCorp Ltd, State Bank of India Ltd and Tata Motors Ltd 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:
Hero MotoCorp | Buy | Resistance: Rs 5,300 | Support: Rs 4,160
Hero Moto has witnessed a steady decline this month. Nonetheless, signs of a potential recovery are surfacing as the stock halts its descent near its 20 and 100-day SMA. The formation of a Bullish engulfing candlestick pattern after four consecutive days of decline suggests a potential pullback in the stock. A decisive breakthrough above the prior week's candle, situated at Rs 4,625, could provide further upward momentum, indicating a potential resurgence with a target around Rs 5,300. It is vital for Hero Moto to maintain levels above Rs 4,160 to sustain this positive sentiment.
State Bank of India | Buy | Resistance: Rs 870 | Support: Rs 780
SBI is now showing signs of revival, after experiencing a significant profit booking over the past two days where prices declined from a peak of Rs 836 to a low of Rs 793. The stock has found stability near its line of parity after two days of straight fall. Additionally, it is still trading above all its key moving averages accompanied by the formation of a bullish candle indicating a shift from bearish to a bullish price trend. Looking at these factors, one can utilize this dip as a buying opportunity and expect a pullback move on the upside till Rs 870 with the stop loss of Rs 780 on closing basis.
Tata Motors | Cautious | Resistance: Rs 1,050 | Support: Rs 945
Tata Motors has been consolidating in a sideways pattern over the past seven weeks, showing no clear directional bias. On the daily chart, it has faced significant resistance around the Rs 1,050-1,065 levels. The daily RSI is also hovering near the 50-mark indicating indecision in the market sentiment. On the flip side, a support base has been firmly established around the Rs 930-945 levels. Consequently, a decisive breakout in either direction is eagerly awaited to indicate a definitive trend.
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