Indian benchmark indices settled slightly higher on Tuesday following a volatile trading session on the back of elevated US bond yields, firm US dollar and consistent FII selling. However, India Inc earnings and Union Budget shall be key triggers for Dalal Street. BSE Sensex gained 224.45 points, or 0.29 per cent, to end the session at 76,724.08. NSE's Nifty50 rose 37.15 points, or 0.16 per cent, to settle at 23,213.20 for the day.
Some buzzing result-bound largecap stocks including Reliance Industries Ltd (RIL), Infosys Ltd and Axis Bank Ltd are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Senior Manager - Technical Research at YES Securities has to say on these stocks ahead of Thursday's trading session:
Reliance Industries | Buy | Target Price: 1,370 | Stop Loss: Rs 1,200
Reliance Industries has fallen into oversold territory. However, recent trading activity suggests a potential shift in trend, after a 25 per cent decline from its peak of Rs 1,608 over the past six month. The stock has recently crossed above its 20-day SMA after an extended period below, signaling a potential change in momentum. This combination of factors presents an intriguing risk-reward scenario. A successful breakout above the Rs 1,270 resistance level, identified within a cup and handle pattern on the daily chart, could fuel a rally towards the Rs 1,370-1,400 price zone. A stop-loss order at Rs 1,200 is recommended to manage potential downside risk.
Axis Bank | Sell | Target Price: 975 | Stop Loss: Rs 1,110
On a weekly timeframe, Axis Bank has broken down from a rounding top pattern, indicating a bearish trend. Selling pressure appears to be intensifying below the Rs 1,065 support level. The price is currently trading below major SMAs further confirming weakness. Moreover, the MACD line is in negative territory, reinforcing the bearish sentiment. A sell position in Axis Bank is recommended on a pullback towards Rs 1,065, with a target price of Rs 975 and a stop-loss order at Rs 1,110 on a closing basis.
Infosys | Buy | Target Price: 2,100 | Stop Loss: Rs 1,880
Despite the recent market correction, Infosys has demonstrated resilience. The 100 and 50-day SMAs have provided strong support over the past 10 days while the stock has established a firm base above its 20-day SMA in the short term, suggesting a potential upward move from current levels. Based on this analysis, we recommend buying Infosys within the Rs 1,940-1,950 range, with a stop-loss order set in Rs 1,880 for a potential target of Rs 2,100.