Tata Motors, ITC, Cipla: Key levels of support and resistance for these buzzing stocks

Domestic equity indices settled sharply lower on Wednesday amid selling in index heavyweights. The BSE Sensex settled at 72,304.88, down 790.34 points, or 1.08 per cent. The NSE Nifty fell below the 22,000 level, as it tumbled 247.20 points, or 1.11 per cent, to eventually settle at 21,951.15

A few stocks such as Tata Motors Ltd, ITC Ltd, JSW Energy Ltd and Cipla Ltd could be under the spotlight today. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Thursday's trading session:

Tata Motors | Bullish | Resistance: Rs 1,000-1,050 | Support: Rs 900-850
Tata Motors is in a classical uptrend. The stock is hovering at its all-time high level. It has witnessed a breakout of a Flag formation on the daily chart with huge volumes. The overall structure looks lucrative, as the stock trades above its all-important moving averages. Tata Motors has a demand zone near Rs 890–900 levels. On the upside, the Rs 1,000 level is an immediate resistance area; above this, one can expect a run-up towards the Rs 1,050 level in the near term. On the downside, if it breaks below Rs 900 level, Rs 850 is the next critical zone.

ITC | Caution | Resistance: Rs 450-480 | Support: Rs 390-400
ITC has witnessed a breakdown of an M-shaped pattern with strong volumes. In the M-shaped pattern formation, there are two peaks with a moderate decline between them. This is a bearish reversal pattern that usually signals the beginning of a downtrend. The first peak is usually formed after a strong uptrend. The trend retraces to a 'neckline' level. Now the counter has retested its previous breakout level of around Rs 400 and consolidated. The overall structure is distorted, as the stock trades below its important moving averages. However, ITC has a demand zone near Rs 390-400 levels. On the upside, the Rs 450 level is an immediate susceptible area; above this, one can expect a run-up towards Rs 480 in the near term.

Cipla | Bullish | Resistance: Rs 1,540-1,600 | Support: Rs 1,400
Cipla is exhibiting a classic uptrend pattern, characterised by higher high-lows, indicating bullish momentum. Additionally, it recently broke out of an Ascending Triangle formation on the weekly chart, accompanied by moderate volumes, further bolstering its bullish stance. Trading above key moving averages reinforces its bullish structure. Based on the pattern, the immediate target price is set at Rs 1,540, with potential for further upside towards the Rs 1,600 level. On the downside, the Rs 1,400 level serves as a crucial support level. Technical indicators support the bullish outlook and MACD signals strength in the current trend. The RSI indicates a positive momentum.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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