Indian equity benchmarks concluded Friday's trading session lower, influenced by a lack of clear geopolitical signals. This uncertainty contributed to higher crude oil prices, fueling inflation concerns and the potential for foreign institutional investor (FII) outflows, all ahead of crucial economic data releases.
The BSE Sensex saw a decline of 455.59 points, or 0.58 percent, closing at 78,499.17. Similarly, the NSE Nifty50 fell by 65.35 points, or 0.27 percent, to finish the day at 24,570.65.
Amidst this market backdrop, Muthuselvaraj M, a Research Analyst at Mirae Asset Sharekhan, has offered insights and trading strategies for select buzzing stocks: Cummins India, Samvardhana Motherson International Ltd (SAMIL), and YES Bank Ltd, ahead of Monday's trading session.
YES Bank: Buy Recommendation
YES Bank has been in a consolidation phase, trading between the Rs 16 and Rs 23 levels, following a significant rally over the past year. The stock is currently retracing towards the Rs 21 mark, which aligns with the upper boundary of its consolidation zone.
Analysts anticipate fresh momentum once the stock surpasses the Rs 28 resistance level, while Rs 21 is identified as a crucial support point. The strategy suggests maintaining a buying interest as long as the stock holds above the Rs 20-21 support level in the short to medium term. The target price for YES Bank is set at Rs 28, with a stop loss at Rs 20.
Samvardhana Motherson International (SAMIL): Hold Recommendation
Samvardhana Motherson International is exhibiting a higher-top, higher-bottom pattern and has recently achieved a new 52-week high. This technical formation indicates a potential upward trajectory towards Rs 190 in the short-to-medium term. However, investors are advised to hold their existing positions with a trailing stop-loss rather than initiating new entries.
The Relative Strength Index (RSI) momentum indicator remains positive, positioned above 70 across multiple time frames. While a positive outlook is maintained, profit-taking could occur if the stock drops below the key support zone of Rs 150-155. The target price for SAMIL is Rs 190, with a stop loss at Rs 155.
Cummins India: Wait & Watch
Cummins India Ltd has experienced profit-taking after reaching its peak of Rs 6,100, suggesting further supply pressure towards Rs 5,150, followed by a key support level at Rs 4,700 in the short-to-medium term. Conversely, a pullback rally above Rs 5,500 could propel the stock into the Rs 5,700-5,900 range.
The stock is currently trading below its 20-day Exponential Moving Average (EMA), which is not considered an ideal entry point for short-term buying. Analysts expect a recovery once the stock sustains above Rs 5,500, with immediate support identified at Rs 5,150. A pullback is anticipated once the stock finds support above Rs 5,150. Key resistance is at Rs 5,500, and support is at Rs 5,150.
Disclaimer: This information is for informational purposes only and should not be construed as investment advice. Readers should consult with a qualified financial advisor before making any investment decisions.