Wednesday was another session of weakness at Dalal Street. The BSE Sensex dropped 344.29 points, or 0.59 per cent, to 57,555.90. The NSE Nifty plunged over 71 points, or 0.42 per cent, to 16,972.15
Select stocks such as Adani Ports & Special Economic Zone, Tata Steel and Lupin were on traders' radar. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on the three stocks ahead of Thursday's trading session.
Adani Ports & Special Economic Zone | Buy | Target Price: Rs 760 | Support: Rs 610
After witnessing a sharp correction, Adani Ports has given a strong pullback. The stock has breached 20- and 50-DMAs on the daily chart, indicating strength. The scrip has started consolidating in the Rs 660-640 zone and is maintaining its support of Rs 620 with decent volume. From the indicator point of view, the daily RSI has made a bullish crossover, confirming the bullish stance. One can buy the stock in the range of Rs 675-665 with an upside target of Rs 760. One can keep a stop loss of Rs 610 on a closing basis.Tata Steel | Buy | Target Price: Rs 124 | Support: Rs 101
Tata Steel looks lucrative after showing correction around 17 per cent since it hit a high of Rs 124 January 19. The stock has bottomed out near the 50 per cent Fibonacci retracement of the previous leg from the support zone of Rs 101-103. Further, the upside movement is getting better with the RSI indicating a decent prominent reversal pattern from the highly oversold zone. A bullish crossover on MACD is signalling ‘buy’. One can buy and accumulate the stock for an upside initial target of Rs 116, keeping a stop loss at Rs 101 on a closing basis. Any further strength in Tata Steel can lift on the counter to Rs 124 level.
Lupin | Caution | Resistance: Rs 720 | Support: Rs 635
Lupin has given a rising channel breakdown from its swing high of Rs 785. It has fallen more than 16 per cent from its recent swing high. The sharp selloff has dragged it below all its significant moving averages. Going ahead, if the support zone of Rs 645-635 is protected, an oversold bounce shall be expected towards Rs 720 levels where its upcoming resistance stands. On the flip side, a failure to hold the mentioned support would weaken the stock further and it can slip down till Rs 580-590 zone.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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