Indian benchmark indices kicked-off the week on a muted note and settled lower on Monday on the back of Trump Tariff fears across the globe, which may push the inflation higher. Broader markets faced the wrath of bears. BSE Sensex dropped 319.22 points, or 0.41 per cent, to end the session at 77,186.74. NSE's Nifty50 tanked 121.10 points, or 0.52 per cent, to settle at 23,361.05 for the day.
Some buzzing stocks including Tata Power Compnay Ltd, Vedanta Ltd and ITC Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:
ITC | Buy | Target Price: Rs 500 | Stop Loss: Rs 427
After a significant correction of nearly 15 per cent from its peak, ITC has established a strong base near the Rs 430 level. This area coincides with the previous breakout zone and aligns with the S3 quarterly levels of the Camarilla Pivot, providing solid support. Additionally, the stock has displayed a bullish divergence on the Stochastics on the daily chart, which signals a potential reversal and strengthens the case for an upward move. Given these technical indications, ITC looks attractive for a long position in the Rs 450-455 zone, with a target of Rs 500. To manage risk, a stop-loss can be placed below the Rs 427 level.
Vedanta | Book Profits
Vedanta has formed a 3-point negative divergence on the weekly charts, indicating weakening momentum despite price increases. The trendline violation confirms bearish sentiment, signalling potential downside. These technical signals suggest a high probability of a correction. Therefore, it is prudent to book profits and wait for a correction of at least 15 per cent from the current market price (CMP) before considering fresh positions. Traders should avoid initiating long positions under current market conditions, as the risk-to-reward ratio is unfavourable, and further downside cannot be ruled out.
Tata Power Co | Buy | Target Price: Rs 395 | Stop Loss: Rs 330
Tata Power peaked at Rs 495 in September 2024, then declined by 32 per cent, forming a pattern of lower highs and lower lows. It has created an bullish AB=CD pattern along with a double bottom near the Rs 340-support level. This double bottom falls between the 50 per cent and 61.8 per cent Fibonacci retracement of the prior rally. Bullish divergence is visible in both slow and fast stochastics, indicating potential upward momentum. Given these signals, we recommend initiating a long position between 352-356 , targeting a price of Rs 395. A stop-loss should be set below Rs 330 on a daily closing basis to manage risk.