Suzlon Energy, YES Bank & Waaree Energies: LKP Securities' analyst shares view

Indian equity benchmarks rebounded sharply from intraday lows during Wednesday's volatile session but ended lower for the third consecutive day. The 30-share BSE Sensex pack slipped 270.84 points or 0.33 per cent to close at 81,909.63, while the NSE Nifty index declined 75 points or 0.30 per cent to settle at 25,157.50. During the session, Sensex recovered 785.18 points from its day's low of 81,124.45, and the Nifty rebounded 237.7 points from an intraday low of 24,919.80.

Broader markets remained under pressure, with NSE MidCap100 falling 1.14 per cent and SmallCap100 down 0.90 per cent.

For Thursday's trade, Vatsal Bhuva, Technical Analyst at LKP Securities, shared his views on Suzlon Energy Ltd, YES Bank Ltd and Waaree Energies Ltd from a short-term trading perspective.

On Suzlon Energy, Bhuva said, "On monthly charts, the stock has retraced nearly 50 per cent when measured from the May 2023 low to the September 2024 high, highlighting a major corrective phase. Across the monthly, weekly, and daily timeframes, the chart structure remains aligned on the downside, indicating strong bearish sentiment. The stock has failed to hold the crucial support of Rs 46.5 and is trading below its 20-day SMA. Although, RSI is placed in a highly oversold zone, despite oversold conditions, the trend remains weak, suggesting that any near-term bounce is likely to be corrective rather than trend-reversing. Immediate support for the stock is placed at Rs 43, while resistance is seen at Rs 48. Overall, the setup indicates a gradual move toward Rs 38. And, a 'sell-on-rise' strategy should be adopted."

Commenting on YES Bank, he stated, "On daily charts, a negative divergence is also observed, highlighting weakening momentum. After forming a long bearish engulfing candlestick, follow-up selling pressure emerged, leading to a breakdown from the recent consolidation range. During today's session, the stock faced strong resistance near its 100-day SMA and closed below it, reinforcing weakness. The stock has already slipped below its 20-day SMA, indicating a weakening short-term and mid-term trend. Investors holding the stock with a long-term horizon may continue to hold, provided a strict stop-loss is maintained at Rs 20.8 level. Immediate resistance is placed at Rs 22.3, while near-term support is seen at Rs 21.10."

For Waaree Energies' counter, Bhuva noted rising downside risks. "On daily charts, a lower top–lower bottom structure confirms a prevailing downtrend. The stock is sustaining below its short-term 20-day SMA, reflecting weakness, and Wednesday’s session saw a decisive break of crucial support, opening the door for further downside. Although, RSI is in a highly oversold zone and the stock is trading well below its short-term averages -- indicating the possibility of a bounce -- the overall chart structure favours a 'sell-on-rise' strategy. Broad support is placed at Rs 2,300, while resistance is seen around Rs 2,520," he said.