Domestic stock indices fell on Thursday, ahead of the US inflation data. Sensex dropped 147 points, or 0.25 per cent, to settle at 59,958 while Nifty50 declined 38 points, or 0.21 per cent to end the session at 17,858.20 Amid weakness in the broader market, select stocks such as One97 Communications (Paytm), PNB Housing Finance and Care Ratings were on traders’ radar. Here is what Rohan Shah, Head of Technical Research at Stoxbox has to say on the three stocks, ahead of Friday's trading session:
PNB Housing Finance | Buy | Target Price: Rs 620-635 | Stop Loss: 550
The stock witnessed renewed buying momentum over the past few weeks after price resolute a breakout from 10-month consolidation, with the formation of wide range candlestick. Post breakout, the upmove in price was well supported with significant surge in volume, which indicates buying interest in the stock at the elevated levels. It denotes inherit strength. In the process, price recently registered breakout from 38.2 per cent retracement level of its prior whole decline from Rs 925 to Rs 311, which is bullish signal. Furthermore, the price has concluded a breakout from the tight range (Rs 575-550), which was formed at the 38.2 per cent retracement line highlights the stock price to extent its rally towards Rs 620 and Rs 635, which is 50 per cent retracement of prior whole decline and upper end of the bearish gap area formed in mid-October 2022. On the flip side, Rs 550-540 area to act key support zone in the short term.
One97 Communications (Paytm) | Cautious | Support: Rs 510-500 |
The stock experienced selloff lately after hitting the potential reversal zone (Rs 578-588) of bearish AB=CD Harmonic pattern, which is a bearish signal for the short term trend. Also, around the similar zone, the stock has resistance of 89 DEMA, which suggests the mentioned zone may act strong hurdle for the stock. On the downside, Rs 510-500 to act strong support in the short term, being the gap zone and cluster of Fibonacci ratios.
Care Ratings | Hold | Target Price: Rs 700-710 | Stop Loss: Rs 615-600
In November 2022, the stock registered a breakout from bullish inverse Head & Shoulder pattern (Rs 550-555 zone), with above average volumes. Along with that, a bull candle indicates structural turnaround in the trend. Post breakout, the stock has been rising steadily and currently has resistance around 61.8 per cent retracement level of its prior whole decline from Rs 790 to 403 levels, which is placed at around Rs 643 level. Going ahead, a sustained move above the same will open the way towards Rs 700-710 zone, being 78.6 per cent retracement level of its previous whole decline and a key supply zone. A failure to hold above the said level, may drag the stock towards Rs 615-600 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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