Indian benchmark indices with big gains after hitting new record highs on Wednesday. Buying in the private banking stocks led to the buying at Dalal Street. Traders will be looking at the India Inc earnings and rate cut cues. BSE Sensex rallied 545.35 points, or 0.69 per cent to end at 79,986.80. NSE's Nifty50 index surged 162.65 points, or 0.67 per cent, to settle at 24,286.50 for the day.
Some buzzing state-run metal stocks namely National Aluminium Company Ltd (Nalco), NMDC Ltd and Steel Authority of India Ltd (SAIL) 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:
National Aluminium | Buy | Resistance: Rs 215 | Support: Rs 183
National Aluminium has experienced a gradual decline from Rs 196 to the Rs 184-180 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 197 would indicate further strengthening and could trigger an upward move towards the next target of Rs 215 in the coming days.
NMDC | Caution | Resistance: Rs 260 | Support: Rs 240
NMDC's fluctuations have remained within a narrow range for the past six days. This lack of clear direction calls for a decisive breakout, either above Rs 260 or below Rs 240, to establish the next move. A drop below Rs 240 could lead to a decline towards Rs 225 while sustained trading above Rs 260 might push the index up to Rs 275. Investors should monitor these levels closely for potential trading opportunities. Additionally, volume trends may provide further insight into the strength of any breakout or breakdown.
Steel Authority of India | Buy | Target Price: Rs 170 | Stop Loss: Rs 143
SAIL has demonstrated a noteworthy breakthrough, exceeding the prior swing high accompanied by considerable trading volumes, indicating a sustained momentum in the ongoing trend. The momentum indicator, Stochastic, further reinforces the bullish sentiment by consistently staying above the critical level of 70. Regarding support and potential gains, the stock has established a robust foundation at the lower end, approximately Rs 143. This level is expected to serve as a support, acting as a safeguard against any potential downward movement.
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