Indian benchmark indices managed to post strong gains Thursday on the back of mild US inflation data, which raised hopes of rate cuts by the US Federal Reserve. Also, eased geopolitical sentiments supported the sentiments at Dalal Street. BSE Sensex jumped 318.74 points, or 0.42 per cent, to end the session at 77,042.82. NSE's Nifty50 gained 98.60 points, or 0.42 per cent, to settle at 23,311.80 for the day.
Some buzzing stocks including Jio Financial Services Ltd, Apollo Tyres Ltd and Ola Electric Mobility Ltd are likely to remain under the spotlight of traders for the session today. Here is what Kushal Gandhi, Technical Analyst at StoxBox has to say on these stocks ahead of Friday's trading session:
Jio Financial Services | Avoid
Jio Financials' price action continues to face selling pressure, showing little indication of recovery due to oversold conditions. Currently, the stock is trading approximately 30 per cent below its record high of Rs 394 and is positioned beneath key moving averages, including the 200-day and 50 DMA with a negative crossover. The 50-week moving average suggests a weakening trend and the potential for continued bearish momentum. Technical indicators reflect a lack of momentum, and when compared to the benchmark index, the relative strength of the stock also indicates diminished price strength. Over the past 12 months, the stock has significantly weakened in terms of price performance, and both buyer demand and sector strength remain quite mediocre. Consequently, we recommend refraining from bottom-fishing this stock at its current market price.
Ola Electric Mobility | Avoid
Ola Electric Mobility is currently experiencing selling pressure, leading to the formation of an intermediate lower peak, which has shifted the resistance down to the Rs 102 levels from the previous Rs 119 levels. The stock is presently trading below the 50-day moving average, while the shorter-term moving averages continue to act as overhead resistance. The breakdown observed at the start of the new calendar year suggests a higher likelihood of any recovery being rejected unless there is a decisive close above the Rs 85 level. Given the significant shortcomings in EPS, price performance, and sector strength, we advise against buying the stock in the current market environment.
Apollo Tyres | Avoid | Stop Loss: Rs 425
The price action of Apollo Tyres is currently at a critical juncture, with a demand zone situated between Rs 441 and Rs 430. Over the past 12 months, the stock has exhibited a sideways trend within a broader range of 26 per cent. A breach below this demand zone would validate the distribution pattern of a triple top, likely leading to increased selling pressure. The stock displays weakness in EPS, price performance, sector strength, and has only moderate buyer demand. The RSI across daily and higher time frames is showing a negative trajectory, suggesting a decline in momentum. Therefore, we recommend avoiding new purchases while holding existing positions, with a stop loss set near the Rs 425 levels on a closing basis.