Indian headline indices settled sharply lower during the trading session on Friday on the back of profit booking ahead of the upcoming Union Budget and global IT outage. BSE Sensex tumbled 738.81 points, or 0.91 per cent to end at 80,604.65. The Nifty50 index plunged 269.95 points, or 1.09 per cent, to settle at 24,530.90 for the day.
Some buzzing largecap stocks namely YES Bank Ltd, Adani Power Ltd and Vedanta Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Monday’s trading session:
YES Bank | Buy | Target Price: Rs 30 | Stop Loss: Rs 21.75
YES Bank has been in a corrective phase after breaking out from the Rs 24.5 level with significant volume recently. Notably, the recent correction has occurred with very low volume, suggesting that bearish pressure is weakening near the Rs 24.5-support level. This level, previously a resistance, has now turned into support. Coincidentally, Rs 24.5 is also near to 50 DEMA which further affirms bullish in the counter. Considering these factors, one might consider buying YES Bank shares within the Rs 24-25 range, anticipating a potential price increase to a target of Rs 30. To manage risk effectively, it is advisable to set a stop-loss order around Rs 21.75 based on daily closing prices, protecting against potential downside movements.
Adani Power | Range-bound | Resistance: Rs 746 | Support: Rs 693
Adani Power is in a precarious position at the current juncture. The Rs 693 level serves as a crucial support zone, with the stock currently hovering near the 695 mark. In the previous trading session, it closed decisively below the 50-day exponential moving average (DEMA) and violated a bullish trendline that had been in place for the past 16-18 months. On the indicator front, the daily Relative Strength Index (RSI) has reversed from the 50 level and is now near the 40 marks. Therefore, it is advisable to adopt a wait-and-watch approach and refrain from adding fresh long positions until the stock closes above Rs 746 on a daily basis.
Vedanta | Avoid
Vedanta has been trading within the range of Rs 425-480 over the past two months and is currently positioned near the Rs 440 mark. On the daily scale, it has formed a triple top pattern around the 480 mark, accompanied by bearish divergence on the RSI, which raises concerns. Therefore, it is advisable to avoid this stock until a significant correction occurs, bringing it down to the Rs 400 zone.
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.
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.
