Indian benchmark indices saw an intense sell-off during the trading session on Thursday amid the rising geopolitical concerns, intense FIIs selling and knee-jerk reaction to SEBI's F&O curbs. BSE Sensex crashed 1,769.19 points or 2.10 per cent, to end the session at 82,497.10. NSE's Nifty50 tumbled 546.80 points, or 2.12 per cent, to close at 25,250.10 for the day.
Some buzzing stocks including ITC Ltd, YES Bank Ltd and Larsen & Toubro Ltd (L&T) are likely to remain under the spotlight of traders for the session today. Here is what Ameya Ranadive CMT CFTe and Senior Technical Analyst at StoxBox has to say on these stocks ahead of Friday's trading session:
ITC | Rangebound | Resistance: Rs 520 | Support: Rs 500
ITC is hovering around a crucial support zone between Rs 505 and Rs 500. As one of the best-performing stocks in the FMCG sector, ITC is just 2 per cent away from it's all-time high. The stock has maintained its position above the key 50, 100, and 200-DEMAs, which indicates strength over the mid-to-long term. However, it is trading slightly below its 20-day EMA, reflecting short-term resistance. For a bullish continuation, ITC needs to break through the Rs 520 level and sustain that momentum, which could lead to targets of Rs 545 and higher. However, should ITC slip below Rs 500, it would signal a bearish reversal, and further downside could be expected. Until that point, the stock remains a solid performer, particularly if it can break through the current resistance levels.
YES Bank | Cautious
Yes Bank has broken through a significant support zone, showing persistent weakness. The stock is trading below all major EMAs- 20, 50, 100, and 200 days- indicating a strong bearish trend. Over the past months, YES Bank has underperformed in the private banking space, remaining a laggard while other banks have shown resilience. Despite being in oversold territory as indicated by the RSI, caution is still advised. The oversold conditions may persist due to the prevailing weakness, making it a stock to avoid in the near term. Without signs of a meaningful reversal, it remains in a no-trade zone for now. A rebound from these levels is unlikely unless there is a structural improvement in the bank's performance or a technical breakout. Investors are advised to remain cautious as the stock's short to mid -term prospects continue to look uncertain, with no immediate signs of recovery.
Larsen & Toubro | Buy on dips | Target Price: Rs 3,900-4,200 | Stop Loss: Rs 3,200
Larsen & Toubro (L&T) is currently trading at Rs 3500, situated at a pivotal support zone between Rs 3,500 and Rs 3,400. This stock has been a non-performer since the start of 2024, trading mostly within a broad range of Rs 3800 to Rs 3500, except for a few outliers. Currently, L&T is near its 200-day EMA, which acts as a critical support level for the stock. Given the stock’s position at this key support, a 'buy on dips' strategy may be suitable for mid-to-long-term investors. Should L&T manage to hold its ground, we could see a mean-reversion move towards Rs 3900–Rs 4200. However, a break below Rs 3200 would invalidate this bullish view and could lead to further downside. For now, the stock presents an opportunity for patient investors, especially if it holds its current support and follows through with a technical rebound.