Bears attacked Dalal Street on Monday as Indian benchmark indices kicked-off the week with intense selling pressure on the back of HMPV scare and relentless selling by FIIs ahead of India Inc's Q3 earnings later this week. BSE Sensex crashed 1,258.12 points, or 1.59 per cent, to end the session at 77,964.99. However, NSE's Nifty50 tanked 388.70 points, or 1.62 per cent, to settle at 23,616.05 for the day.
Some buzzing stocks including Reliance Industries Ltd (RIL), Oil India Ltd (OIL) and Tata Consumer Products Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:
Reliance Industries | Buy | Target Price: Rs 1,350 | Stop Loss: Rs 1,135
Reliance Industries is trading in a support zone defined by the channel created by its 2008 and 2009 highs, as seen on the chart. In the past four instances, the stock has rebounded from the channel's lower boundary. Currently, a bullish crab pattern with a reversal zone around Rs 1,200-1,220 is evident at the channel’s lower end. This reversal zone aligns with anchored VWAP support and bullish divergence on the daily RSI. The fixed range volume profile from 2021 till date shows significant volume activity in the 1160-1235 zone , coinciding with the reversal area. Based on these confluences, a turnaround in Reliance's price is anticipated. Traders can consider accumulating in the Rs 1,185-1,225 range for an upside target of Rs 1,350, with a stop-loss set below Rs 1,135 on a daily closing basis.
Oil India | Resistance: Rs 490-580 | Support: Rs 450-420
Oil India recently rebounded from a key support level around Rs 420 and is now trading near Rs 460. This support corresponds to the market profile's point of control, highlighting the highest trading activity between June 2024 and September 2024. Counter reveals a bullish divergence on the daily timeframe, signalling a potential upward move toward the Rs 580 mark. However, a daily close above Rs 490 is critical to confirm a sustained rally. If this level is surpassed, it could trigger further bullish momentum. Meanwhile, support is expected near Rs 450, offering a cushion for any short-term pullbacks, with immediate resistance positioned at Rs 490. Traders should monitor these levels closely, as breaking above Rs 490 could pave the way for the next leg of the uptrend toward Rs 580.
Tata Consumer Products | Buy | Target Price: Rs 1,040 | Stop Loss: Rs 885
Tata Consumer has corrected 30 per cent from its peak of Rs 1,200 and formed a reversal candlestick pattern near the previous breakout zone, now a strong demand area. The stock reversed precisely at the 161.8 per cent Fibonacci retracement of its prior move, signalling a potential bounce in the coming weeks. Traders are advised to buy in the range of Rs 925-950, with a stop loss of Rs 885 for upside targets of Rs 1,040. The confluence of technical factors suggests a favourable risk-reward setup, making it an attractive opportunity for swing or positional traders.