Indian equity benchmarks extended their weakness for an eighth consecutive session, influenced by muted global cues, elevated bond yields, and rising crude oil prices. As the BSE Sensex fell by 0.79% and the Nifty50 dropped by 0.88%, several prominent large-cap stocks, including Infosys, Vedanta, and ITC, are under close scrutiny by traders. Muthuselvaraj M, a Research Analyst at Mirae Asset Sharekhan, has provided key insights and trading recommendations for these companies for the upcoming session.
Vedanta: Sideways to Negative Bias
Vedanta Ltd. has exhibited a 'lower top, lower bottom' pattern on its daily chart, indicating a negative outlook. Analysts suggest a potential decline towards a critical support zone situated between Rs 238 and Rs 230. A rally above the 20-day Exponential Moving Average (EMA) at Rs 264 could initiate a pullback towards the Rs 275–290 range. However, with momentum indicators showing a negative crossover and a downward trajectory, fresh buying is advised only above Rs 264, maintaining Rs 238 as a short-term support level. The stock is generally expected to trade with a sideways to negative inclination.
ITC: Consolidation at Lower Levels
ITC Ltd. has been trading flat, forming a downward-sloping channel on its daily timeframe. The stock's price is currently below all short-term exponential averages, signaling a lack of upward momentum. Momentum indicators also suggest sideways movement at lower levels. This indicates a period of consolidation at its base in the short term. A breach below the crucial support area of Rs 245 could trigger further declines. Consequently, ITC is anticipated to remain in a consolidation phase at lower price points for the near and short term.
Infosys: Positive Trend with Buying Opportunity
Infosys Ltd. has formed a base after experiencing a 'lower top, lower bottom' pattern on its daily chart. The stock is demonstrating resilience from this base, showing positive movement with a key short-term support identified at Rs 980. Currently, Infosys is trading near its 20-day EMA at Rs 1,045. A break above this level could propel a rally towards target prices of Rs 1,105–1,240. Daily momentum indicators are showing signs of recovery towards a positive crossover from the oversold zone. Traders are advised to consider fresh buying opportunities above Rs 1,035 on a closing basis, while maintaining the critical support at Rs 980. Overall, Infosys is expected to sustain a positive trend in the near to short term.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered investment advice. Readers are strongly encouraged to consult with a qualified financial advisor before making any investment decisions.