Indian benchmark indices settled with modest gains on Wednesday amid the positive outlook for India Inc after recent corrections. Optimism from the global cues also supported the sentiments. BSE Sensex gained 230.02 or 0.29 per cent to end the session at 80,234.08. NSE's Nifty50 jumped 80.40points or 0.33 per cent, to settle at 24,274.90 for the day.
Some buzzing PSU stocks including Hindustan Aeronautics Ltd (HAL), Life Insurance Corporation of India (LIC) and Indian Bank are likely to remain under the spotlight of traders for the session today. Here is what Mr. Laxmikant Shukla, Technical Research Analyst, YES Securities has to say on these stocks ahead of Thursday's trading session:
Hindustan Aeronautics | Buy | Target Price: Rs 4,880 | Stop Loss: 4,190
HAL recently demonstrated a descending trendline breakout after consolidation and is currently trading comfortably above 200 and 50 SMA on the daily chart. Daily RSI has given a bullish crossover on the daily chart reinforcing the given breakout. The overall trend appears to be upward and minor upcoming fluctuations are likely to provide a favorable environment for buyers. "Hence, we recommend Buying HAL on a dip around Rs 4400-4440, keeping a stop loss of Rs 4,190 on a closing basis for a potential target of Rs 4,880.
Indian Bank | Caution | Resistance: Rs 600 | Support: 495
Indian Bank has been consolidating sideways for the past four-five weeks, showing no clear directional bias. On the daily chart, it has encountered significant resistance in the Rs 595-600 range. The repeated formation of doji candlestick patterns on the weekly chart indicates market indecision. Conversely, a key support base has formed around the Rs 495 level, near its prior swing low. Therefore, a decisive breakout in either direction is eagerly anticipated to establish a clear trend.
Life Insurance Corporation of India | Buy | Target Price: Rs 990 | Stop Loss: 870
LIC has recently seen a significant decline from its peak of Rs 1,222, approaching the 50 per cent Fibonacci retracement on the daily chart, a level that has historically acted as strong support, often leading to a robust rebound. In the past few trading sessions, the stock has started gaining momentum, reinforcing this historical trend. From a technical standpoint, indicators have bounced back from oversold conditions, showing a pullback move, which signals the potential for a bullish reversal in the stock. Hence, we recommend buying in LIC around Rs 905-915, keeping a stop loss of Rs 870 on a closing basis for an upside target of Rs 990.