Indian benchmark indices nosedived on Tuesday after the less-than-expected results of the general elections 2024, where the BJP-led NDA failed to cross 300 mark dented the market sentiments. BSE Sensex plunged 4,389.73 points, or 5.74 per cent to settle at 72,079.05. NSE's Nifty50 index tanked 1,379.40 points, or 5.93 per cent, to end the session at 21,884.50.
Some buzzing stocks namely Nestle India Ltd, Britannia Industries Ltd and Hindustan Unilever Ltd (HUL) are likely to remain under the spotlight of traders for the session today. Here is what analysts at 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:
Britannia Industries | Book Profits After bottoming near Rs 4,650 on April 19, 2024, Britannia Industries' stock experienced a robust rally, climbing 775 points, which represents a notable 16–17 per cent increase. This upward momentum brought the stock price close to its historical high of Rs 5,386 in the most recent trading session. However, despite testing this critical resistance level, the stock was unable to close above it, indicating potential weakness or hesitation among buyers at this peak price point. Given this scenario, we recommend that traders and investors consider booking profits within the range of Rs 5,300–5,400. This strategic move allows them to capitalize on the substantial gains realized during the rally while mitigating the risk of a potential pullback or consolidation phase. Additionally, we advise against initiating new long positions at this juncture, as the failure to breach the historical top suggests that further upward movement may be limited in the short term, warranting a more cautious approach.
Hindustan Unilever| Buy | Target Price: Rs 2,475-2,500 | Stop Loss: Rs 2,399 After a period of consolidation in the approximate range of Rs 2,310-2,390, HUL has successfully broken out of its said range. The stock is now comfortably maintaining its position above this range, indicating a strong upward movement. From an indicator perspective, the weekly Stochastics has given bull cross near 70 levels, which is a positive sign for potential gains. Based on this analysis, we recommend that traders and investors consider taking a long position in the range of Rs 2,475-2,500. The target for this upward move is set at Rs 2,660, with a stop-loss placed at Rs 2,399 based on a daily closing price.
Nestle India | Buy | Target Price: Rs 2,600 | Stop Loss: Rs 2,260 At the current juncture, Nestle has found support at the upper boundary of its previous major breakout level, approximately around Rs 2,327. This level is significant as it represents a critical price point where the stock previously experienced a surge in buying interest, leading to a breakout. The current support suggests that the stock may stabilize and build a base here, offering a potential entry point for investors. Given this context, it is anticipated that Nestle may undergo a period of consolidation within the range of Rs 2,360 to Rs 2,460. During this phase, the stock is likely to trade sideways as it gathers momentum for the next move. Based on this analysis, we recommend a staggered buying approach for Nestle within the range of Rs 2,350 to Rs 2,400. This strategy involves gradually accumulating the stock rather than making a lump-sum investment, which helps mitigate risk and take advantage of potential price fluctuations within the consolidation range. The target price for this investment is set at Rs 2,600, indicating significant upside potential. However, it is crucial to implement a stop-loss at Rs 2,260 on a daily close basis to protect against adverse price movements and limit potential losses. This disciplined approach balances the opportunity for gains with prudent risk management.
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.