Indian benchmark indices remained rangebound on Wednesday and settled slightly lower amid muted global and domestic cues. However, broader markets exhibited a relief rally on the back of bargain hunting in the beaten down segments. BSE Sensex shed 28.21 points, or 0.04 per cent, to end the session at 75,939.18. NSE's Nifty50 declined 12.40 points, or 0.05 per cent, to settle at 22,932.90 for the day.
Some buzzing stocks including Vedanta Ltd, Dr Reddy's Laboratories Ltd and Cyient Ltd are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Senior Manager - Technical Research at YES Securities has to say about these stocks ahead of Thursday's trading session:
Vedanta | Caution | Resistance: Rs 460 | Support: Rs 400
Vedanta has faced downward pressure, leading to a gradual decline in its stock price towards the key support zone around Rs 400-405 in the past 5-6 weeks. This level is also significant due to the presence of a line of parity which may provide additional support. If these support levels hold, we could see a rebound towards the Rs 456-460 range. Conversely, if the support fails, the selling pressure is likely to continue, potentially driving the stock down to Rs 380 and Rs 366 levels.
Dr Reddy's Laboratories | Caution | Resistance: Rs 1,255 | Support: Rs 1,120
Dr Reddy's Labs has experienced a notable decline from its peak of Rs 1,406, nearing the key support level of Rs 1,120, which has historically acted as a strong floor, often triggering a pullback. Recent trading sessions have shown the stock rebounding from lower levels, reinforcing this historical pattern. From a technical perspective, the formation of a dragonfly doji pattern suggests a potential pullback is on the horizon. If the stock successfully defends the critical support level of Rs 1,120, a pullback towards the Rs 1,255 level could be expected. However, a significant upward move remains unlikely as the stock continues to trade below all its key moving averages.
Cyient | Rangebound | Resistance: Rs 1,600 | Support: Rs 1,300
Cyient has recently experienced profit-taking after breaking down below the base line of descending triangle pattern. It is now approaching the 200-week SMA. Technical indicators are mixed with a bearish RSI suggesting potential downside pressure, yet the point of polarity provides strong support, indicating a possible pullback. This creates some uncertainty in the stock’s near-term direction. However, there is solid support in the Rs 1,295-1,300 range. If this support holds, a short-term rebound to Rs 1,600-1,620 is possible, though significant upside momentum may be limited in the near term.