Indian benchmark indices settled lower for another trading session on Friday on the back of hawkish tone of the US Federal Reserve. This signals higher interest rates for a longer period, adding to the cautious sentiments of the markets. BSE Sensex tanked 424.90 points, or 0.56 per cent, to end the session at 75,311.06. NSE's Nifty50 crashed 117.25 points, or 0.51 per cent, to settle at 22,795.90 for the day.
Some buzzing Tata group stocks including Tata Steel Ltd, Tata Technologies Ltd and Tata Motors Ltd are likely to remain under the spotlight of traders for the session today. Here is what Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst at StoxBox has to say about these stocks ahead of Monday's trading session:
Tata Steel | Buy | Target Price: Rs 152 | Stop Loss: 135
Tata Steel has demonstrated a strong rally over the past few weeks. It has been moving within an upward-trending channel, forming higher highs and higher lows, which reflects a robust bullish structure. It is currently trading above the 20-day and 50-day EMA, indicating sustained strength in momentum. The recent price action suggests a positive shift in sentiment, supported by technical indicators. The MACD has turned positive, signaling bullish momentum, while the RSI has exhibited a positive crossover, further reinforcing the uptrend. Tata Steel presents a buying opportunity at current levels for an upside target of Rs 152 in the near term. However, traders should remain cautious, as any breach below Rs 135 would negate the bullish outlook and may lead to short-term weakness. The overall trend remains favorable.
Tata Motors | Caution | Support: Rs 668
Tata Motors is positioned at a crucial technical juncture, with Rs 668 acting as a significant support level. It has been under considerable selling pressure, witnessing a steep decline of over 43 per cent in the past eight months. The broader price structure remains weak, and any breakdown below Rs 668 could trigger a fresh wave of selling, leading to further downside. Technical indicators reinforce this bearish sentiment, with the RSI at 37 and continuing to fall, indicating weakness in momentum. The MACD remains in negative territory, and the ADX has shown a negative crossover at 27, highlighting the strength of the ongoing downtrend. Tata Motors remains in a no-trade zone. A decisive breakdown below Rs 668 could accelerate selling pressure, making it prudent for traders and investors to adopt a wait-and-watch approach. Until signs of stabilization or a reversal emerge, taking new positions in Tata Motors may carry significant downside risks.
Tata Technologies | Caution
Tata Technologies has consistently remained under pressure, failing to establish any significant uptrend. It is moving within a well-defined falling channel, indicating persistent weakness. Tata Technologies is trading below all key moving averages, including the 20-day, 50-day, 100-day, and 200-day EMAs, reaffirming the bearish trend. The ADX is at 31, showing strong downward momentum, while the broader technical structure suggests a continued lack of buying interest. Tata Tech is exhibiting a 'falling knife' pattern, with no immediate support in sight, given the prevailing downtrend. Investors are advised to exercise caution and refrain from taking fresh positions until the stock shows signs of stability or a potential reversal. A wait-and-watch strategy remains the best approach for now, as further downside risk cannot be ruled out in the near term.