Indian benchmark indices kicked off the weak on a strong note bucking the muted global cues including rising geopolitical concerns and China’s disinflation. BSE Sensex surged 591.69 points or 0.73 per cent, to end the session at 81,973.05. NSE's Nifty50 soared 163.70 points, or 0.66 per cent, to close at 25,127.95 for the day.
Some buzzing stocks including Hindustan Aeronautics Ltd (HAL), Suzlon Energy Ltd and Bharat Electronics Ltd (BEL) are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Senior Manager - Technical Research, Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:
Hindustan Aeronautics | Buy | Target Price: Rs 4,450-4,500 | Stop Loss: Rs 4,260
HAL reached a peak of around Rs 4,950 on September 4, 2024, but has since experienced a significant decline, falling 16 per cent value. This drop has brought the stock back into a key demand zone, which could attract potential buying interest at this level. On the weekly chart, HAL has formed a bullish harami candlestick pattern, typically viewed as a reversal signal, indicating the possibility of an upward price movement. Additionally, the Relative Strength Index (RSI) on the daily chart has developed a V-shaped impulsive structure around the 30 level, accompanied by bullish divergence. This pattern is particularly notable, as the RSI has also surpassed its previous swing high, further reinforcing a bullish outlook. Considering these technical signals, a long position on HAL is recommended in the price range of Rs 4,450-4,500, with a target of Rs 4,900. A stop-loss should be placed at Rs 4260, based on the daily closing price.
Bharat Electronics | Avoid
At this point, BEL appears to be showing weakness, as the daily RSI remains consistently below the 50 level, and the Ichimoku future cloud is bearish and trending downward. Additionally, the current price action is below the Ichimoku cloud, with the latest closing still encountering resistance near the 50-day Exponential Moving Average (DEMA), which is concerning. In light of these factors, it is advisable to book profits on any upward bounce and avoid taking new long positions.
Suzlon Energy | Caution
Recently, Suzlon experienced a bearish divergence around the 86 level, signalling a potential reversal in price momentum. Following this divergence, the stock underwent a correction of approximately 23 per cent, pulling back to around Rs 66. Currently, Suzlon is trading within the Ichimoku Cloud, which is often used to identify key support and resistance levels. The upper boundary of this cloud, coinciding with the 50-day Exponential Moving Average (DEMA), is likely to act as a strong resistance in the near term. Additionally, the Relative Strength Index (RSI) on the daily chart remains below the 50 mark, raising concerns about ongoing weakness. Given these indicators, the Rs 66 level could be considered a potential support and entry point for a new position. However, a wait-and-watch approach is recommended for now.