Domestic benchmark were back in the red on Thursday, tracking weak global cues. The BSE Sensex dropped 187.31 points, or 0.31 per cent, to settle at 60,858.43. Nifty shed 57.50 points, or 0.32 per cent, to close at 18,107.85.
Select stocks such as Reliance Industries, Hindustan Unilever and Asian Paints were on traders’ radar amid the weakness in market. Here is what Rohan Shah, Head of Technical Research at Stoxbox suggests traders should do with these three stocks in Friday's session:
Reliance Industries | Buy | Target Price: Rs 2,600 | Stop Loss: Rs 2,250 |
The stock has been trading in ascending channel for the past one-and-a-half years. The stock has formed significant tops and bottoms around the upper end and lower end of the channel line. Currently, the stock is placed around the inflection zone and also around the lower end of the ascending channel. Around the similar juncture, the price has support of Ichimoku (green) cloud that suggests it is a crucial support for the stock. The momentum indicator RSI (Weekly) is placed at 44 and is oscillating in the 60-40 range fort the past many weeks, indicating a lack of momentum. Going ahead, if the stock price manages to protect Rs 2,400-2350 zone, a reversal in the price is likely. In such a case, the [rice will move higher towards Rs 2,600 in the near term. A breakdown from the mentioned support will throw a caution signal for the bulls and the price may witnessed selling pressure towards Rs 2,250-2,200 levels.
Hindustan Unilever | Buy | Target Price: Rs 2,800 | Stop Loss: Rs 2,600 |
The primary trend of the stock is bullish, as the stock is seen forming series of higher highs and higher lows on the higher degree chart and the stock is trading above key moving averages. Furthermore, the stock is forming a potential Cup and Handle price pattern on the weekly time frame, which is bullish signal. However, the pattern has not confirmed a breakout. A decisive move above Rs 2,700 would confirm the breakout from the bullish pattern and the price is expected to attract fresh upwards momentum. After successful breakout, the price is expected to inch higher to challenge its prior life-time high, which is placed around Rs 2,860. On the other hand, Rs 2,600-2580 is the key support zone to keep an eye on.
Asian Paints | Neutral
The stock has been under pressure for the past 3 months after forming a peak at Rs 3,580. The chart structure continues to remain weak and, technically, the stock has room to decline further. Analysing the weekly chart, the stock is seen trading in the wide range from Rs 3,580 to Rs 2,600 since January 2022. This year, the stock has decisively broken the support of median line of the channel, which coincides with 50 per cent retracement level of its prior advance from Rs 2,563 to Rs 3,580. Moreover, this week’s price has broken 61.8 per cent retracement level support of its prior advance, indicating the stock is headed to test 78.6 per cent retracement line that is placed at Rs 2,780. On the flip side, an intermediate resistance is placed in the Rs 2,900-2,930 zone.
(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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