Indian benchmark indices settled lower on Thursday ahead of the RBIs monetary policy due later today. Global cues over the trade war crisis continued to weigh on the market sentiments. BSE Sensex dropped 213.12 points, or 0.27 per cent, to end the session at 78,058.16. NSE's Nifty50 plunged 92.95 points, or 0.39 per cent, to settle at 23,603.35 for the day.
Some buzzing stocks including YES Bank Ltd, Suzlon Energy Ltd and Vodafone Idea 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:
YES Bank | Avoid
The share price of Yes Bank, which experienced a significant correction over the past year but has finally begun to stage a relief rally after finding support at the 50-month moving average. Although the monthly chart indicates a price trend characterized by higher highs and higher lows, the stock displays relatively high volatility. Managing the risk-reward profile during a bottoming phase can be quite challenging, especially when volatility is present. The RSI on both weekly and monthly timeframes remains below the median level, suggesting a lack of price momentum in the broader trend. Although the stock shows signs of improvement, the current risk-reward scenario remains unfavorable. Therefore, we advise against making new entries into the stock but recommend holding any existing positions.
Vodafone Idea | Buy | Target Price: Rs 11.20 | Stop Loss: Rs 8.80
The price action of Vodafone Idea is currently positioned in stage 1 of the stock cycle, marked by a waning downside momentum following a period of decline over several months. Recent volume expansion, despite minimal price changes, suggests that the selling pressure from disgruntled shareholders is easing and buyers entering the market are not seeking significant price concessions, which indicates a favorable development. The stock appears to be forming a cup and handle pattern characterized by relatively low volatility, signaling accumulation and potential signs of an intermediate trend reversal—an encouraging sign. This improvement in buyer demand has also enhanced its relative performance compared to the Nifty50, further indicating positive momentum. The stock is trading above its 50DMA and is currently supported by 20 DMA, which acts as immediate support. We recommend purchasing the stock at the current market price, targeting a price of Rs 11.20, while maintaining a stop loss near Rs 8.80 to ensure a favorable risk-to-reward ratio.
Suzlon Energy | Avoid
The share price of Suzlon has retraced 44 per cent of its gains from a peak of Rs 85.85, following a remarkable increase from the lows in March 2024. This profit-taking has resulted in the stock price falling below key moving averages, such as the 50-week moving average, as well as below the 50 and 200 DMA, which are currently experiencing a negative crossover. This suggests a persisting weak trend. The RSI for both daily and weekly timeframes is trading below median levels, while the monthly RSI shows a negative slope, indicating a decline in price momentum. Suzlon has demonstrated weak price strength compared to its performance over the past 12 months, as well as in comparison to the benchmark index Nifty50, accompanied by significantly low buyer demand, which is another negative signal. With the 200 and 50 DMA moving averages situated close to the 62-60.75 levels, they present overhead resistance. The price action is expected to gain bullish strength if it can decisively reclaim this zone on a closing basis. Until that occurs, we recommend refraining from making new purchases in the stock.