Investors are likely to stay cautious on Thursday amid a slew of Q2 earnings and ahead of the Federal Reserve Chairman Jerome Powell's speech due later today. The BSE's barometer Sensex fell 551.07 points, or 0.83 per cent, to settle at 65,877.02 in the previous session. The NSE Nifty50 dropped 140.40 points, or 0.71 per cent, to close at 19,671.10. A few results-bound FMCG large cap stocks namely Nestle India, ITC and Hindustan Unilever (HUL) are likely to remain be in focus today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:Nestle India | Buy | Target Price: Rs 25,265 | Stop Loss: Rs 22,250
Nestle India is currently demonstrating a strong momentum, as it is approaching record highs. In addition, a breakout of the falling wedge on the weekly timeframe in late September suggests a continuation of the upward trend. Furthermore, the RSI has shown a breakout, indicating increasing momentum in the stock's price. Given these compelling factors, it can be inferred that stock is displaying robust performance. Looking ahead, one can anticipate the stock to climb towards Rs 25,265 level. It is recommended to keep a stop-loss at Rs 22,250 based on closing prices to effectively manage potential downside risks.
ITC | Range-bound | Resistance: Rs 460 | Support: Rs 430 ITC remained confined within the broader range of Rs 460 -430 for last 10 weeks. The formation of the ongoing series of Doji candlestick patterns -- formed with prices enclosed within the mentioned band, indicates a range squeeze. This could result in a breakout or breakdown from the range soon. A breakout above Rs 460 would lead the stock towards the Rs 490 level. A breach of Rs 430 could induce selling pressure towards Rs 400.Hindustan Unilever | Buy | Target Price: Rs 2,800 | Stop Loss: Rs 2,410
HUL is showing signs of a revival after undergoing severe beating from July to September, where prices declined from a high of Rs 2,769 to all the way down to Rs 2,442. A positive divergence in RSI with the formation of long bullish candles at the bottom are indicating trend reversal. Beside this, momentum indicators such as stochastic have started trading in the oversold zone, which also hints at a likely pullback move. A bullish move in HUL is possible with a target of up to Rs 2,800. One can initiate a buy trade at Rs 2,530-2,550 with stop loss of Rs 2,410 on a daily closing basis.
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