Adani Enterprises, RIL, Apollo Hospitals: What should be your strategy for today

Domestic stock indices snapped the two-day losing streak on Tuesday, thanks to strong global cues. The 30-share pack BSE Sensex surged 600 points, or 0.99 per cent, to 61,032.26. The NSE's Nifty jumped 158.95 points, or 0.89 per cent, to 17,929.85.

Select stocks such as Reliance Industries (RIL), Adani Enterprises and Apollo Hospitals Enterprises were on traders' radar. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart says on these three stocks ahead of Wednesday's trading session:

Reliance Industries | Hold | Target Price: Rs 2,500 | Stop Loss: Rs 2,300

Reliance Industries (RIL), with the surge in volume, has broken out of a bullish Inverse Head and Shoulders pattern on the daily chart. Overall, the structure appears to be very appealing, as it trades above its 9- and 20-SMA and has a demand zone near Rs 2,300. On the upside, Rs 2,425 is a susceptible level; above this, we can expect a run-up towards Rs 2,500 in the near term. On the downside, Rs 2,300 is the next critical level.

Adani Enterprises | Cautious | Resistance: Rs 2,200 | Support: Rs 1,400

Adani Enterprises has witnessed a breakdown of an upward-sloping channel on the longer time frame while witnessing a breakdown of a long consolidation pattern on the shorter time frame with strong volume. The stock is currently trading below its 200-day simple moving average. On the downside, Rs 1,400 is the important psychological support level. On the upside, the level of Rs 2200 will see strong resistance.

Apollo Hospitals Enterprise | Hold | Target Price: 4,600 | Stop Loss: Rs 4,200

Apollo Hospitals Enterprise is observing profit booking at higher levels. It is witnessing the formation of the right shoulder of a Head & Shoulder pattern on the daily chart. It is taking support at around the 200-DMA (Rs 4,200), while on the upside, Rs 4,450 is the resistance level, above which, we can expect Rs 4,600 levels in the near term.

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

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