Indian headline indices settled sharply lower on Wednesday but managed to stage a smart recovery from lower levels on the back of mixed cues, ahead of the monthly F&O expiry later today. BSE Sensex dropped 280.16 points, or 0.35 per cent, to close at 80,148.88 amid the budget volatility. The Nifty50 index tumbled 65.55 points, or 0.27 per cent to settle at 24,413.50.
Some buzzing largecap stocks namely Tech Mahindra Ltd, Canara Bank and NTPC Ltd are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Technical Research Analyst, YES Securities has to say on these stocks ahead of Thursday's trading session:
NPTC | Buy | Target Price: Rs 390 | Stop Loss: Rs 370
NTPC's stock has made a significant breakthrough from its falling resistance line with substantial trading volumes, signaling a strong continuation of its current trend. The Stochastic and RSI momentum indicator consistently remains above the critical level of 70 and 60 marks, reinforcing the bullish outlook. The stock has established a solid support base around Rs 370, which is anticipated to act as a protective level against any potential declines.
Tech Mahindra | Buy | Target Price: Rs 1,700 | Stop Loss: Rs 1,460
Shares of Tech Mahindra are now showing signs of revival, after experiencing a significant profit booking over the past three days where prices declined from a peak of Rs 1,545 to a low of Rs 1,460. The stock has found stability near its line of parity after three days of straight fall. Additionally, the stock is still trading above all its key moving averages accompanied by the formation of bullish candles indicating a shift from a bearish to a bullish price trend. Looking at these factors, one can utilize this dip as a buying opportunity and expect a pullback move on the upside till Rs 1,700 with the stop loss of Rs 1,460 on a closing basis.
Canara Bank | Caution | Resistance: Rs 120 | Support: Rs 100
Canara Bank has been stuck in a rut for the past six weeks between a broader range of Rs 120 and Rs 100. This comes after a strong upward trend and it seems investors are taking a breather after some bearish signals emerged on the daily charts. The lack of a clear direction and the formation of indecisive patterns suggests this lull might continue. If the price can't break above Rs 120, a key resistance level, a renewed rally is unlikely. On the downside, support appears to be holding around Rs 100.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.