Airtel, Lupin, Cummins India: How should you trade these buzzing stocks amid results

Domestic stock indices settled sharply lower on Wednesday on negative global cues. A US credit rating cut by Fitch Ratings triggered selling pressure globally and India was no exception. The BSE Sensex plunged 676.53 points, or 1.02 per cent, to settle at 65,782.78. The NSE Nifty tanked 207 points, or 1.05 per cent, to end the day at 19,526.55.

Select results-bound stocks such as Bharti Airtel, Cummins India and Lupin are likely to remain 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:

Bharti Airtel | Range-bound | Resistance: Rs 900 | Support: Rs 850

Bharti Airtel is seen taking support at the line of polarity on the weekly timeframe. It has formed a bearish candlestick pattern after three days of decline, which indicates a pause from the current downswing. Weekly RSI is still hovering near the 60 mark, suggesting ambiguity on the directional move. On the daily chart, the stock is facing stiff resistance near the Rs 900 zone due to the supply pressure at tops. However, on the downside, it has formed a base at around Rs 860-850 levels. Hence, a decisive move on either side is required for any unidirectional move.

Lupin | Buy | Target Price: Rs 1,125 | Stop Loss: Rs 930

Lupin has seen trading in an upwards sloping parallel channel pattern. It is making with higher top and higher bottom formation since the last few weeks after taking support from its 200-DMA. On the indicator front, the super trend indicator is indicating a bullish continuation on the daily timeframe and the Ichimoku Cloud is also suggesting a bullish move as the price is trading above the conversion and base line. These factors indicate that a bullish move in Lupin is possible for targets up to Rs 1,125. One can initiate a ‘Buy’ trade in the range of Rs 990-995, with a stop-loss of Rs 930 on a daily closing basis.

Cummins India | Hold | Resistance: Rs 1,980 | Stop Loss: Rs 1,840

At the current juncture, Cummins India is struggling near its top after showing high of Rs 1,980. Moreover, in the previous trading session, it formed a 'Bearish Engulfing' candlestick pattern on the weekly chart exactly at the mentioned resistance zone. Although, the stock has a strong support at 1,840 level. Positive view will remain intact till the stock holds above Rs 1,840. However, on crossing above Rs 1,980, one can expect gains towards Rs 2,260 level.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)