Indian benchmark indices settled little lower on Thursday amid the consistent FII selling. However, positive domestic data kept the cuts capped. On the other hand, muted Q2 earnings by India Inc is denting the sentiments. BSE Sensex shed merely 16.82 points or 0.02 per cent, to end the session at 80,065.16. NSE's Nifty50 dropped 36.10 points, or 0.15 per cent, to close at 24,399.40 for the day.
Some buzzing stocks including YES Bank Ltd, Reliance Industries Ltd (RIL) and Nestle India Ltd 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:
YES Bank | Avoid
YES Bank is experiencing a sharp decline of 27 per cent over the past two months. The stock is trapped in a downward sloping channel, reflecting sustained selling pressure. The technical setup indicates continued weakness, with the stock trading below all key moving averages confirming the bearish sentiment. YES Bank's immediate support lies at Rs 19, which is seen as the last line of defense for the bulls. A breakdown below this level could lead to further downside, exacerbating the stock's already weakened position. Given the technical indicators and overall market sentiment, Yes Bank remains in a no-trade zone at the moment.
Reliance Industries | Cautious
Reliance Industries faces significant resistance from its 20-day and 50-day EMA levels at Rs 2,767 and Rs 2,846, respectively, which need to be crossed for any meaningful upside momentum. It is hovering close to its key support level of Rs 2,630. Sustaining above this level is crucial for the stock to stage a potential bounce and avoid further downward pressure. To witness a reversal, Reliance needs to defend the Rs 2,630 support and break through its moving average resistance levels. Failure to hold Rs 2,630 could trigger further downside, with the next significant support seen around Rs 2,580. Traders should monitor the RSI for any bullish divergence, which could offer early signs of recovery.
Nestle India | Avoid
Nestle India is displaying a bearish sentiment. The stock has breached critical support levels, with sustained selling pressure indicated by the rising volume. The recent weak earnings report has further contributed to the negative outlook, making it less attractive for long positions at this time. The stock has fallen below its 50-day, 100-day, and 200-day EMAs, signaling a bearish trend. The inability to hold these moving averages confirms that sellers are in control. Given the technical setup and weak fundamentals, investors should avoid long positions in Nestle until a clear bottom formation occurs or bullish signals emerge.