Adani Ports, ITC, Tata Power: What should be your strategy amid market volatility

Domestic stock indices settled mixed on Thursday, with  Adani Group stocks extending their recent fall. For the day, Sensex gained 224.16 points, or 0.38 per cent, to 59,708.08. But Nifty, which has two Adani stocks as index constituents settled almost flat at 17,610.40.

Select stocks such as Adani Ports & Special Economic Zone, ITC and Tata Power were on traders’ radar. Here is what Rohan Shah, Head Technical analyst at Stoxbox has to say on these stocks ahead of Friday's trading session:

Adani Ports | Caution | Support: Rs 460 -440 | Resistance: Rs 500-520

The Adani Ports stock has been hammered sharply in the last couple of weeks on the back negative news flows. The scrip has fallen more than 45 per cent from recent high. The sharp selloff has led price to drop towards its prior multi month resistance zone (Rs 445-430). Around the similar juncture, the stock triggered a bullish CRAB Harmonic pattern, with Potential reversal zone (PRZ) stands around Rs 460 -440 levels. Going ahead, if the mentioned support zone is protected, an oversold bounce shall be expected towards Rs 500-520 mark. On the other hand, a failure to hold the said support zone would signal continuation of the selling pressure towards Rs 400-380 zone.  

ITC | Hold | Support: Rs 360-365 | Resistance: Rs 395-400

The ITC stock witnessed a stupendous run since February 2022 low, where price rallied from Rs 200 to Rs 360. Post that, the stock turned sideways. It traded in the narrow range with a positive bias. The stock printed a new life high on Thursday and generated a breakout from the consolidation with a strong candle formation, indicating a new trading range. The relative strength line against Nifty is inching north, which suggests inherent strength in the price. However, the momentum indicators are trading at an overbought territory, indicating the stock may encounter profit booking, which shall provide fresh buying opportunity. The stock has strong support around Rs 365-360 zone. It has resistance in the Rs 395-400 zone.

Tata Power | Caution | Support: Rs 195

The Tata Power stock had been in a strong uptrend since May 2020, where price rallied from Rs 27 to Rs 278 levels. Post forming an all-time high around Rs 298, the stock has been encountering the selling at every intermediate rally, indicating the bulls are losing grip. Also, on the weekly chart, the stock has formed a potential bearish complex Head & Shoulder pattern. The pattern would be confirmed once the stock price decisively breaks below Rs 195 level. A breakdown from the said pattern would signal a caution on the uptrend and the trend likely to transit from bullish to bearish.

(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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