Indian benchmark indices gave up their gains on Tuesday, thanks to the fag-end selling during the session to settle on a flat note. Geopolitical concerns and rising crude oil prices pulled the headline indices lower. BSE Sensex added only 13.65 points or 0.02 per cent, to end the session at 81,711.76. NSE's Nifty50 inched up merely 7.15 points, or 0.03 per cent, to close at 25,017.75 for the day.
Some buzzing Tata Group stocks including Tata Elxsi Ltd, Tata Technologies Ltd and Tata Consultancy Services Ltd (TCS) are likely to remain under the spotlight of traders for the session today. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:
Tata Consultancy Services | Resistance: Rs 4,800-5,000 | Support: Rs 4,350-4,200
TCS has been one of the strongest performers in the IT sector, leading the market even in volatile situations. It recently broke out of a cup and handle formation on a longer time frame and has retested the breakout level with a pin bar candle. The charts look very promising, with the first hurdle at Rs 4,565. If this level is breached, a rally could extend towards the Rs 4,800 and Rs 5,000 levels. On the downside, the first support is provided by the 20-day moving average (20 DMA) at Rs 4,350. A breakdown below this level could lead to a decline towards the major support level of Rs 4,200.
Tata Technologies | Resistance: Rs 1,150-1,200 | Support: Rs 950
Tata Tech is bottoming out from the lower levels with strong volume on the daily chart. It is trading above its all-important moving averages. Supported by a sector tailwind and bullish momentum indicators. MACD is supporting the current strength whereas momentum indicator RSI is also positively poised. The pattern suggests an immediate target of Rs 1,150, while it has the potential to move further upside till Rs 1,200 levels. On the downside, Rs 950 will act as an immediate support level.
Tata Elxsi | Resistance: Rs 9,200-10,000 | Support: Rs 7,500
Tata Elxsi has witnessed a breakout of a long consolidation with strong volume on daily chart and closed above 200-DMA. It is bottoming out from the lower levels, where a cluster of moving averages formed a strong base at around Rs 7,000 levels. The structure is very bullish, as it is trading above all key moving averages. However, momentum indicators such as the RSI and MACD are currently in a negative position. On the upside, Rs 9,200 is a significant psychological resistance level. If it surpasses this level, we can anticipate a move towards the Rs 10,000 levels in the near term. On the downside, Rs 7,500 serves as the support level.