Indian equity markets experienced modest losses on Wednesday, largely influenced by weakness in IT stocks after the US paused visa appointments. Despite some support from receding inflation fears, the BSE Sensex fell 0.24% to 77,472.94, and NSE's Nifty50 closed down 0.52% at 24,207.75.
Amidst this market backdrop, select buzzing stocks like HDFC Bank, Varun Beverages Ltd, and Cyient Ltd are expected to be in focus for traders. Laxmikant Shukla, Technical Analyst at YES Securities, offers his insights and key levels for Thursday's trading session.
HDFC Bank: Downtrend Continues
HDFC Bank continues to exhibit a clear downtrend, having broken below its critical Rs 750–760 support zone, which now acts as a strong resistance area. The stock consistently forms bearish candles, signaling ongoing selling pressure. While the Relative Strength Index (RSI) has moved above its 9 EMA, suggesting a possible weakening of downward momentum and a short-term bounce, the broader trend remains negative.
- Outlook: Caution
- Immediate Support: Rs 700-690
- Resistance: Rs 750–760
- Potential Decline: A break below current support could push the stock towards Rs 650.
Cyient: Bullish Breakout
Cyient Ltd has delivered a strong breakout above its prior month swing highs around Rs 990, effectively converting this resistance into a solid support base. The stock is trading above all major moving averages, indicating sustained bullish strength. The overall technical structure points towards a continuation of the uptrend.
- Outlook: Buy on Dips
- Next Upside Target: Rs 1,100-1,120 zone
- Buy Strategy: Consider buying on dips near Rs 990–1,000.
- Stop Loss: Place below Rs 950 to maintain a favorable risk-reward profile.
Varun Beverages: Cautious Outlook
Varun Beverages formed a bearish belt hold candlestick pattern, signaling increased selling pressure at current levels. A short-term support zone is anticipated around Rs 410 to Rs 400, aligning with its previous swing low. However, if the price fails to recover meaningfully from this area, further downside may occur.
- Outlook: Avoid / Cautious
- Short-term Support: Rs 410-400
- Strong Resistance: Near Rs 450
- Potential Decline: A breakdown below current support could drag the stock towards Rs 385 to Rs 380.
- Trend Shift: The broader outlook remains cautious unless the stock achieves a decisive move above the strong resistance near Rs 450.
Disclaimer: This information is for educational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.