Vedanta, JSW Steel, SpiceJet: What should be your strategy amid market correction

 

Key stock indices on Tuesday extended fall for the eighth straight day. The BSE Sensex declined 326.23 points, or 0.55 per cent, to settle at 58,962.12. The NSE Nifty shed 88.75 points, or 0.51 per cent, to 17,303.95.

Select stocks such as Vedanta, SpiceJet and JSW Energy were on traders' radar. Here is what Pravesh Gour, Senior Research Analyst at Swastika Investmart has to say on these three stocks ahead of Wednesday's trading session:

Vedanta | Hold | Target Price: Rs 280 | Stop Loss: Rs 250

The Vedanta stock deviated, as it experienced a breakdown of long-term consolidation and closed below the 200-SMA on the daily chart. It did gave a breakout of the Triangle formation on the daily chart at around Rs 325, but has not been able to sustain that level. The overall structure is disfigured, as Vedanta trades below its key moving averages. But it is in a demand zone near Rs 250. On the upside, the Rs 280 level is an immediate susceptible area. The momentum indicator MACD (moving average convergence divergence) is sustaining the current strength, and the RSI (relative strength index) is also poised negatively.

SpiceJet | Hold | Target Price: Rs 42-44 | Stop Loss: Rs 30

On a longer-time frame, SpiceJet is encountering trend-line resistance and forming lower highs and lower lows. The counter's overall structure is distorted because it is trading below its 100- and 200-SMAs. That said, the scrip is forming a base on the chart at around Rs 30 level. On the upside, the Rs 42 level is an immediate susceptible area. A break above it can lead to a run-up towards Rs 44-plus levels in the near term.

JSW Energy | Resistance: Rs 270 | Support: Rs 200

JSW Energy was a multibagger in 2021. Post that, we have seen a profit booking on the counter at higher level. The structure of the counter is distorted, but the scrip took support from the Rs 200 level with massive volumes in the last trading session. On the upside, the level of Rs 250 operates as susceptible levels. A break above that can lead to a move towards Rs 270 level in the shorter to longer term. On the downside, the Rs 200 level will act as a crucial support during any pullback.

(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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