Indian benchmark indices settled lower for another trading session, though posted mild cuts amid persistent FII selling and falling rupee. Valuation concerns in the broader markets continue to spook the traders. BSE Sensex fell 29.47 points, or 0.04 per cent, to end the session at 75,967.39. NSE's Nifty50 shed 14.20 points, or 0.06 per cent, to settle at 22,945.30 for the day.
Some buzzing largecap stocks including Tata Consultancy Services Ltd (TCS), Nestle India Ltd and Hindalco Industries Ltd are likely to remain under the spotlight of traders for the session today. Here is what Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services has to say about these stocks ahead of Wednesday's trading session:
Tata Consultancy Services | Buy | Target Price: Rs 4,300 | Stop Loss: Rs 3,740
TCS is currently testing the lower boundary of a falling channel while holding above the 100-week EMA and the long-term ascending trendline support. This confluence suggests a potential rebound from current levels. The RSI at 40 is near oversold territory, indicating a possible reversal if buying emerges. Additionally, the MACD histogram is showing signs of bottoming out, suggesting weakening bearish momentum. Prices have very limited downfall from the present juncture, with favourable risk-reward, we expect prices to take U turn from present juncture with potential upside towards Rs 4,300. On the lower side, Rs 3,740 will act as an immediate support, a decisive fall below this level will shift the sentiments to bearish.
Nestle India | Buy | Target Price: Rs 2,386 | Stop Loss: Rs 2,060
Nestle India is currently testing a crucial support zone near Rs 2,147-2,150, which aligns with previous resistance-turned-support and the 200-week EMA. The price action suggests accumulation at these levels, indicating potential reversal. The RSI is stabilizing around 41, hinting at a possible recovery from oversold conditions. Additionally, the MACD histogram is showing signs of contraction, signaling weakening bearish momentum. Prices are expected to witness fresh rounds of buying from the present juncture, leading to a rebound towards Rs 2,386 in the near term. As long as the stock holds above the Rs 2,060 support, the broader uptrend remains intact, making this a strong risk-reward setup for long-term investors.
Hindalco Industries | Buy | Target Price: Rs 667 | Stop Loss: Rs 558
Hindalco Industries is currently trading near a strong ascending trendline support, which has historically acted as a reliable demand zone. The 100-week EMA is providing additional support, reinforcing the stock’s bullish structure. The RSI at 44 is recovering from oversold territory, indicating potential reversal. Meanwhile, the MACD histogram is showing signs of contraction, suggesting weakening bearish momentum. Prices are in ‘buy the dip’ mode, and looking to pave the way for an upside towards Rs 667. With the validation of Rs 558 support zone, the broader uptrend remains intact.