The Indian benchmark posted decent gains during the trading session on Tuesday as the focus shifts towards the US economic data and the upcoming US Federal Reserve meeting due next week. BSE Sensex jumped 361.75 points or 0.44 per cent, to end the session at 81,921.29. NSE's Nifty50 rallied 104.70 points, or 0.42 per cent, to close at 25,041.10 for the day.
Some buzzing stocks including One 97 Communications Ltd (Paytm), FSN E-Commerce Ventures Ltd (Nykaa) and Zomato Ltd 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:
One97 Communications | Buy | Target Price: Rs 750-800 | Stop Loss: Rs 580
Paytm is showing several positive technical indicators, making it appealing to long-term investors. It has developed an upward channel pattern, typically signaling the continuation of an uptrend. The breakout from this formation, supported by strong volume, indicates notable buying interest. The counter has established a series of higher highs and higher lows, a key characteristic of a sustained uptrend. This suggests that buyers are progressively willing to pay higher prices over time. The MACD reinforces the current bullish momentum, while the RSI remains favorably positioned, further supporting the positive outlook. On the upside, Rs. 750 presents an immediate resistance level; a break above this could propel the price towards Rs. 800. On the downside, the cluster of moving averages around Rs. 580 acts as a strong support zone during any potential pullback.
Zomato | Hold | Target Price: Rs 280-300 | Stop Loss: Rs 240
Zomato is in a strong uptrend where it is breaking out of Flag formation. It created a strong base around their breakout level at Rs 240; however, Rs 280 is an immediate resistance where it may see some pause, but above this, it is likely to head towards Rs 300 levels. On the downside, Rs 240 is major support at any correction, while Rs 220 is the next critical demand level. MACD and RSI are supporting the strength of the current movement.
FSN E-Commerce Ventures | Buy | Target Price: Rs 230-250 | Stop Loss: Rs 195
Nykaa has witnessed a breakout of a triangle formation, which is generally considered a bullish signal. It retested its previous breakout levels. It has found a strong base at around Rs 200, and it is trading above all important moving averages. The structure of the counter becomes so lucrative for long-term investors. On the upside, Rs 230 is the neckline and an immediate hurdle; above this, we can expect a move towards Rs 250. On the downside, a cluster of moving averages at around Rs 195 is a strong demand zone during any correction.