Domestic stock indices rallied sharply on Tuesday, thanks to buying in index heavyweights Reliance Industries and the HDFC twins. The BSE Sensex surged 562.75 points, or 0.94 per cent, to settle at 60,655.72. Nifty50 jumped 158.45 points, or 0.89 per cent, to close at 18,053.30.
Select stocks such as Larsen & Toubro, Apollo Hospitals and Laurus Labs were on traders’ radar. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart suggests traders to do with these stocks in Wednesday's trading session:
Larsen & Toubro | Buy | Target Price: Rs 2,400 | Stop Loss: Rs 2,050 |
The L&T stock witnessed a breakout of a symmetrical triangle formation on the daily chart, with strong volumes. It is in a classical upward move and the overall structure is very lucrative, as the stock is trading above all its important moving averages. It is also forming higher high- lows. The momentum indicator RSI is positively poised while the MACD is witnessing a centerline crossover on the upside. On the higher side, the Rs 2,300 level is acting as an important psychological level. Above this, one can expect the level of Rs 2,400 in the near-short term. On the lower side, the Rs 2,050 level will act as a major support during any correction. Going forward, the bullish trend is expected to continue. Traders can benefit from buying at current levels and selling at higher levels.
Apollo Hospital Enterprises | Buy | Target Price: Rs 4,600 | Stop Loss: Rs 4,150 |
The Apollo Hospitals stock is placed at the 200-SMA on the daily chart. It has retested its previous breakout level at Rs 4,000-4,200. It has been facing trend-line resistance around Rs 4,700–4,800 levels. The structure of the counter is impressive for traders, as it is forming a base at 200-day SMA. On the upside, the Rs 4,500 level serves as a psychological level. The level of Rs 4,600 serves as a short-term target level. On the downside, the Rs 4,150 level is the major support level.
Laurus Labs | Cautious
Laurus Labs has witnessed a breakdown of Head & Shoulder pattern formation on the weekly chart. The overall structure is distorted, as the scrip trades below its important moving averages. That said, the stock is in a demand zone, which was the last breakout level at Rs 340. On the upside, the Rs 380 level represents an immediate vulnerable area; above this, we can expect a near to long-term run-up to Rs 400 levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today