Trading strategies: On the daily timeframe, L&T has been forming a rounding top formation. It formed a base at the 50-day moving average and recovered from the demand zone at around Rs 2,850.
Domestic equity indices ended a two-day winning streak on Tuesday, owing to profit-taking in certain pockets. The BSE Sensex fell 237.72 points, or 0.37 percent, to end the session at 63,874.93. The NSE’s Nifty fell 61.30 points, or 0.32 percent, to close at 19,079.60.
Some blue-chip stocks, including Bharti Airtel Ltd, Larsen & Toubro Ltd, and Tata Steel Ltd, are expected to remain in the spotlight today. Pravesh Gour, Senior Technical Analyst at Swastika Investmart, has the following to say about these stocks ahead of the Wednesday trading session: – Trading strategies
Bharti Airtel | Buy | Rs 960 Target | Rs 880 Stop Loss
On the weekly chart, Bharti Airtel is forming a channel. On the daily chart, a long consolidation was broken with a strong volume above Rs 900. Profit booking has occurred at a higher level in the scrip. It retested the 50-day moving average around Rs 900 and began a new leg of the rally towards Rs 940, with the 9- and 20-day moving averages acting as resistance levels.
Larsen & Toubro | Hold | Rs 3,000 Target | Rs 2,700 Stop Loss
In the daily time frame, L&T has been forming a rounding top formation. It has been building a foundation at 50-DMA. The stock has recovered from the demand zone at around Rs 2,850. On the daily chart, it is also forming the right shoulder formation of the Head and Shoulder pattern. On the upside, the Rs 3,000 level is acting as a resistance level; above this, a large move to Rs 3,200 is expected in the short term. On the downside, the demand zone for any correction is Rs 2,850. The Rs 2,700 level will be the next support level below this.
Tata Steel | Range-bound | Rs 115 as support | Rs 125 as resistance
Tata Steel’s stock trend has been consistently bearish, with a series of declining peaks and troughs. Its recent drop below the 100-day Simple Moving Average (SMA) has consolidated the bearish trend. Looking ahead, it is expected to find significant support near Rs 115, which corresponds to the 200-day SMA. On the other hand, there are significant impediments to the upward trend. The 20-day and 50-day SMAs are currently at Rs 125, forming a formidable resistance zone.
