Adani Power, Reliance, ICICI Bank: Trading strategy for buzzing largecap stocks

Domestic stock indices on Thursday made a share U-turn and settled sharply lower amid the expiry of the October series F&O contracts. Rising crude oil prices and strengthening US treasury yields also hurt sentiment at Dalal Street. The BSE Sensex plunged 610.37 points, or 0.92 per cent, to settle at 65,508.32. The NSE Nifty tumbled 192.90 points, or 0.98 per cent, to end at 19,523.55.

A few largecap counters namely ICICI Bank, Adani Power and Reliance Industries could be in focus today. Here is what Avdhut Bagkar, Technical Analyst at StoxBox to say on these stocks ahead of Friday's trading session:

Adani Power | Buy | Target Price: Rs 450 | Stop Loss: Rs 350
While the present bullish trend is confronting a minor hurdle at the Rs 400 mark for Adani Power, the bias remains highly optimistic until the support of Rs 350 is decisively negated. The stock is witnessing robust sentiment. A breakout of Rs 425 could take the stock to the Rs 450 level.

ICICI Bank | Cautious
ICICI Bank saw a breakdown below the 50-simple moving average (SMA) at Rs 969, following which the price action has seen accelerated weakness. The next support for ICICI Bank exists at Rs 910, which is its 200-SMA. The current sentiment is vulnerable to more bearishness. A stability above Rs 960 level may help recoup the losing bias.

Reliance Industries | Neutral | Resistance: Rs 2,600 | Support: Rs 2,250
Reliance Industries shares must scale over the Rs 2,375 level to embark on a bullish bias. Until that happens, the 200-SMA placed at Rs 2,286 serves as a key support. The overall trend remains range bound within Rs 2,600 to Rs 2,000 levels. A breakdown underneath Rs 2,250 could derail the reversal trend, causing the counter to drop further.

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