Indian headline indices managed to settle higher on Wednesday after a volatile trading session. Mixed global cues, in-line Q4 earnings and election uncertainty kept the traders hooked to the edges. BSE Sensex jumped 267.75 points, or 0.36 per cent to settle at 74,221.06. NSE's Nifty50 index gained 68.75 points, or 0.31 per cent, to end the session at 22,597.80.
Some buzzing stocks namely ITC Ltd, Indian Bank Ltd and InterGlobe Aviation Ltd (IndiGo) 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:
ITC | Buy | Target Price: Rs 480 | Stop Loss: Rs 420
ITC experienced a gradual decline from Rs 446 to the Rs 423-430 range 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 with a bullish crossover on the daily chart suggesting potential for continued upward momentum. A decisive move above Rs 446 would indicate further strengthening and could trigger an upward move towards the next target of Rs 480 in the coming days.
InterGlobe Aviation | Buy | Target Price: Rs 4,625 | Stop Loss: Rs 3,800
IndiGo has demonstrated a robust upward trend from September 2023 to May 2024. During this period, it consistently formed higher highs and higher lows on weekly charts, confirming a strong uptrend. The weekly chart reveals the emergence of bullish candles, indicating sustained upward momentum. However, after such a significant uptrend, a phase of consolidation or correction is expected. Therefore, any pullback towards the Rs 4,100-4,050 range should be viewed as a buying opportunity. To manage risk, a stop loss at Rs 3,800 is advisable while aiming for an upside target of Rs 4,625.
Indian Bank | Buy | Target Price: Rs 624 | Stop Loss: Rs 534
Indian Bank has demonstrated a breakthrough exceeding the prior swing high accompanied by considerable trading volumes indicating a sustained momentum in the ongoing trend. 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 534. This level is expected to serve as a support, acting as a safeguard against any potential downward movement.
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