Reliance, UltraTech, Kotak Mahindra Bank: Trading strategies for these buzzing blue-chip stocks

Domestic stock indices settled sharply lower on Wednesday led by a sharp selloff in HDFC Bank shares and weakness in global markets. A rising dollar, hawkish US Fed commentary and geopolitical concerns hurt the market sentiment for the day. The BSE Sensex dived 1,628.01 points, or 2.23 per cent, to settle at 71,500.76. The NSE Nifty50 plunged 460.35 points, or 2.09 per cent, to end the day at 21,571.95.

A few buzzing largecap stocks namely UltraTech Cement Ltd, Reliance Industries Ltd and Kotak Mahindra Bank Ltd are likely to remain under the spotlight today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

UltraTech Cement | Caution | Resistance: Rs 10,300 | Support: Rs 9,600
UltraTech Cement has experienced a rapid ascent, surging from Rs 8,155 to a peak of Rs 10,526, aligning with the broader rally in the cement sector. Although the trend has smoothly transitioned, it is essential to acknowledge the potential for a cooldown or correction following such a robust rally. In terms of support levels, the base has marginally shifted upwards, now residing around the Rs 9,600 zone. At present, the stock faces a cluster of resistance in the higher range of  Rs 10,100-10,300. Despite the recent positive price action, the stock is anticipated to sustain its upward trajectory. Caution is advised and traders should prudently manage profits by implementing strict trailing stop-loss measures.

Reliance Industries | Caution | Resistance: Rs 2,800 | Support: Rs 2,575
Reliance Industries has recently experienced a notable upward surge. But a recent breakdown, coupled with substantial trading volumes, underscores the presence of robust resistance levels at higher prices. In this situation, exercising caution and awaiting clearer signals and price stability before making any definitive moves is advisable. It is important to note that the stock has a crucial support within the Rs 2,625-2,575 range. Until it gets a decisive close below the same, there is a possibility of pullback towards Rs 2,800 where it can face resistance.

Kotak Mahindra Bank | Caution | Resistance: Rs 1,830 | Support: Rs 1,750
Kotak Mahindra Bank exhibited a medium-term downtrend while consolidating between Rs 1,920 and 1,800. However, the recent close below the bearish Head and Shoulder pattern on the daily chart and sustenance of prices below key moving averages -- coupled with the daily strength indicator RSI below its reference line, suggest a negative bias on the counter. A decisive close below Rs 1,750 could induce selling pressure towards Rs 1,690. However, the bearish view will be negated if price closes above the resistance of Rs 1,830, where the 200-SMA is also placed.
 

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.

Also read: Stock recommendations by analyst for Jan 18, 2024: Welspun Corp, L&T Fin and Apollo Hospitals

Also read: HDFC Bank ADRs plunge 9% overnight! More selling ahead for private bank shares?