Bears continued to dominate the Dalal Street on Tuesday as benchmark indices settled lower for another session amid the global weakness. BSE Sensex dropped 337.66 points
or 0.58 per cent, to 57,900.19 while NSE's Nifty50 plunged over 111 points, or 0.65 per cent, to 17,043.30.
Select stocks such as Adani Enterprises, Titan Company and Persistence Systems were on traders' radar in the weak trading session on Dalal street
Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart suggests as trading strategy in these stocks during the Wednesday's trading session:
Adani Enterprises | Avoid | Resistance: Rs 2,050-2,400 | Support: Rs 1,400 |
Adani Enterprises had witnessed a massive decline in the primary trend in January with huge volumes while in February,
it had formed a double bottom formation at around Rs 1,000–1,100 levels. The double bottom looks like the "W" letter
On the upside, the levels of Rs 2,050 operate as susceptible levels; above these, we can anticipate a protracted move towards Rs 2,400 in the shorter to longer term.
On the downside, Rs 1,400 acts as a crucial support during any pullback. This stock is highly volatile. As a result, investors are advised to avoid such counters.
Titan Company | Hold | Resistance: Rs 2,500-2,600 | Support: Rs 2,300-2,250 |
Titan Company Ltd is creating a downward-sloping channel from its lifetime highs, although it has rebounded strongly with volume from the parallel trend-line lower lows
It has also broken the horizontal line around the Rs 2,350 level. The overall structure is looking distorted as it trades below its all-important moving averages.
On the upside, Rs 2,500 has become an immediate resistance area; above this, we can expect a run-up towards Rs 2,600 levels in the near term. On the downside, if it breaks the Rs 2300 level, then Rs 2,250 is the next support level.
Persistent Systems | Hold | Resistance: Rs 4,800 | Support: Rs 4,400 |
Persistent Systems Ltd has witnessed a breakout of the head and shoulders formation with strong volume on the daily chart. Now, it has retested its previous breakout levels at around Rs 4,400–4,450
MACD (moving average convergence divergence) is supporting the current strength
whereas the momentum indicator RSI (relative strength index) is also negatively poised
On the upside, if Rs 4,800 is an immediate hurdle, we can expect a move towards the Rs 4,900 levels.
On the downside, Rs 4,400 will act as a strong demand zone.