Suzlon Energy, Adani Enterprises, ITI: How to trade these 3 buzzing stocks

Indian benchmark indices kicked off the week on a muted note and settled with big cuts gains on Monday as the persistent selling from FIIs dented the sentiments ahead of the new year. BSE Sensex tanked 450.94 points, or 0.57 per cent, to end the session at 78,248.13. However, NSE's Nifty50 crashed 168.50 points or 0.71 per cent, to settle at 23,644.90 for the day.

Some buzzing stocks including ITI Ltd, Adani Enterprises Ltd and Suzlon Energy Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:

Adani Enterprises | Avoid

Adani Enterprises has surged 28 per cent from its recent low of Rs 2,025, currently trading near Rs 2,590 levels. Key resistance is identified at Rs 2,650 and Rs 2,700 levels, while immediate support lies around Rs 2,500. Given the sharp rally, profit-booking is advised in the Rs 2,650-2,700 resistance zone, as further upside may face selling pressure. Fresh long positions are best avoided at this stage, as the risk-reward ratio is less favourable near resistance. Traders should wait for a pullback or consolidation before considering new entries, ensuring a better entry point and reduced downside risk. This approach aligns with prudent risk management following such a significant price movement.

ITI | Book Profits

ITI is approaching its resistance zone, as seen at the previous high on the chart. This makes the Rs 380-390 range a critical area where profit booking is advisable. Historically, such zones often attract selling pressure, limiting further upside in the short term. However, a decisive breakout above Rs 404 could invalidate this resistance, potentially triggering further upward momentum toward the Rs 425 level. Traders should wait for confirmation of the breakout before entering new long positions. Until then, it is prudent to lock in profits within the Rs 380-390 zone and monitor price action closely for any signs of sustained strength or reversal near the key levels.

Suzlon Energy | Avoid

Suzlon took crucial support at Rs 62.20 after facing resistance near the 65-66 zone. The chart has turned bearish, signaling potential downside risk. The daily RSI is below 50, indicating weakening momentum and suggesting that selling pressure may persist. Given the bearish sentiment and lack of a strong support zone nearby, it is advisable to adopt a wait-and-watch approach. A stable base needs to form near the Rs 56-58 zone before considering fresh entries. This cautious stance allows traders to avoid catching a falling knife and ensures a better risk-reward setup once a solid foundation is established for potential recovery or trend reversal.