Bears were back at Dalal Street on Tuesday as the Indian benchmark indices settled sharply lower on the back of another sharp selloff by the overseas investors. Muted dull economic data further dampened the sentiments. BSE Sensex tanks 920.83 points or 1.03 per cent, to end the session at 78,675.18. NSE's Nifty50 crashed 257.85 points, or 1.07 per cent, to close at 23,883.45 for the day.
Some buzzing largecap stocks including Wipro Ltd, ABB India Ltd and Steel Authority of India Ltd (SAIL) 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:
Wipro | Resistance: Rs 580-600 | Support: Rs 550-535
Wipro is in the formation of higher highs and higher lows formation on the daily chart. The previous swing high around Rs 580 is an immediate level; above this, we can expect Rs 600 level in the near term. On the downside, the previous breakout level of 550 is a critical support level while 535 is a strong demand zone. Momentum indicators are positively poised to support the current strength of the trend.
Steel Authority of India | Resistance: Rs 120 | Support: Rs 107
SAIL has witnessed a breakdown from the head & shoulder pattern formation on the longer time frame charts. The overall structure is distorted as it trades below all important moving averages, and the momentum indicators are negatively poised. On the downside, Rs 107 is the strong support level where we can expect a bounce-back while on the upside, the level of Rs 120 is likely to act as an immediate hurdle.
ABB India | Resistance: Rs 7,200-7,400 | Support: Rs 6,800-6,600
ABB India has found a double top formation and shown a profit booking from the higher levels at around Rs 9,100-9,000. The structure of the counter is distorted as it is trading below all its important averages. Its breakdown will be confirmed once it will close below Rs 6,800 levels. Once it will go below Rs 6,800, then Rs 6,600 may be the next level. On the upside, Rs 7,200 (200-DMA) is an immediate hurdle; above this, we can expect a move towards Rs 7,400.