Indian equity benchmarks closed significantly higher, influenced by positive global cues from the US and Iran. The return of Foreign Institutional Investors (FIIs), strong Q1 earnings from Indian corporations, and a robust Indian rupee contributed to the positive market sentiment. The BSE Sensex rose 544.39 points (0.70%) to 78,639.03, while the NSE Nifty50 surged 390.70 points (1.60%) to 24,596.
Amidst this market activity, select stocks such as Vedanta Ltd, Bharat Heavy Electricals Ltd (BHEL), and ITC Ltd are drawing attention from traders. Jigar S Patel, Senior Technical Research Analyst at Anand Rathi Share and Stock Brokers Ltd, has offered his technical outlook for these companies.
Bharat Heavy Electricals (BHEL) Outlook: Caution Advised
BHEL continues to trade above its 21-day Exponential Moving Average (EMA), indicating a positive broader trend. However, recent price action suggests a consolidation phase following a sharp rally. The stock faces immediate resistance in the Rs 420–425 zone. A decisive breakout above this level, supported by strong volumes, is necessary to revive bullish momentum and target Rs 440.
On the downside, Rs 400–405 serves as the first major support, followed by a stronger demand zone near Rs 385. While the +DI remains above the –DI, reflecting a mild bullish bias, the ADX at 14.93 signals a weak trend, and the MACD histogram has turned negative, indicating fading short-term momentum. Traders are advised to remain cautious until a confirmed breakout emerges, as failure to hold above Rs 400 could trigger profit booking.
ITC Ltd Outlook: Caution Amidst Pressure
ITC Ltd remains under pressure on the weekly chart, trading below its 21-week EMA, which suggests a bearish primary trend. Despite this, the stock shows signs of stabilization near the long-term demand zone of Rs 275–280, a level that has historically attracted buying interest.
The MACD histogram has turned positive, hinting at a gradual fading of downside momentum. However, the DMI remains negative with -DI above +DI, indicating that sellers still hold the upper hand. An ADX of 37.5 reflects the strength of the prevailing trend. Major support is at Rs 275, followed by Rs 260. Key resistance levels are Rs 298–300 (21-week EMA) and then Rs 320. A sustained breakout above Rs 300 could initiate a medium-term recovery, while a breakdown below Rs 275 might invite fresh selling pressure.
Vedanta Ltd Outlook: Range-Bound Trading
Vedanta continues to trade below its 21-day EMA, signaling a weak short-term trend despite signs of stabilization around recent lows. The stock is attempting to form a base in the Rs 255–260 zone, but sustained buying interest is currently lacking.
The MACD histogram has turned positive, suggesting that bearish momentum is gradually easing. Nevertheless, the DMI remains negative with -DI above +DI, indicating continued seller dominance. An ADX of 33.10 points to the ongoing strength of the downtrend. Major support is placed at Rs 255, followed by Rs 235. Major resistance levels are seen at Rs 270 (21-day EMA) and then Rs 285. A decisive close above Rs 270 could trigger a relief rally, whereas a breakdown below Rs 255 might lead to fresh selling pressure towards the Rs 235 support zone.