Indian benchmark indices closed slightly lower on Tuesday, with the BSE Sensex dropping 67.30 points (-0.09%) to 78,472.87 and NSE Nifty50 shedding 25.80 points (-0.11%) to settle at 23,727.65. As traders prepare for Q3 results and Union Budget cues, large-cap stocks like Reliance Industries (RIL), ICICI Bank, and ITC remain in the spotlight.
Here’s a detailed technical analysis and trading strategy for these three buzzing stocks:
1. ICICI Bank: Strong Bullish Structure
Recommendation: Buy
- Target Price: ₹1,350–₹1,370
- Stop Loss: ₹1,250
Technical Analysis:
- The stock is trading within an ascending channel on the weekly chart, maintaining higher highs and higher lows.
- 21-Week EMA Support: The stock is consolidating near the upper range of the channel, with the 21-week EMA aligning with the rising trendline, providing robust support.
- Momentum Indicators:
- RSI trending above 50, suggesting potential for further upside without entering the overbought zone.
- Healthy volume supports sustained buying interest.
Strategy:
Traders can consider entering ICICI Bank near current levels, targeting ₹1,350–₹1,370. A stop loss at ₹1,250 is advised to protect against downside risks.
2. ITC: Robust Bullish Momentum
Recommendation: Buy
- Target Price: ₹511–₹523
- Stop Loss: ₹449
Technical Analysis:
- Trendline Support: The stock has bounced off a key trendline support on the weekly chart, affirming its uptrend.
- 55-Week EMA: Acting as a strong base around ₹461, bolstering bullish momentum.
- Volume and Momentum:
- Recent price action shows increased volumes and higher closes, signaling renewed buying interest.
- RSI above the neutral zone confirms strength and supports the continuation of the uptrend.
Strategy:
ITC is a strong buy as long as prices remain above ₹451. Traders should aim for ₹511–₹523 while maintaining a stop loss at ₹449 to safeguard against volatility.
3. Reliance Industries: Signs of Reversal
Recommendation: Buy
- Target Price: ₹1,328
- Stop Loss: ₹1,145
Technical Analysis:
- Support Levels: The stock finds support near a rising trendline on the monthly chart, signaling a potential reversal from recent corrections.
- 50-Month EMA: Reinforces the bullish undertone, maintaining the stock’s long-term upward trajectory.
- Momentum Indicators:
- Monthly RSI at 45.70 suggests the stock is neither overbought nor oversold, offering room for upward movement.
- MACD shows signs of convergence, hinting at a potential reversal.
Strategy:
Traders should consider buying Reliance Industries near current levels, targeting ₹1,328. A stop loss at ₹1,145 is recommended to mitigate risks associated with market fluctuations.
Key Insights for Traders
- ICICI Bank: A bullish ascending channel pattern supported by strong volume and RSI above 50 makes this stock a solid buy for near-term gains.
- ITC: Higher lows, robust EMA support, and rising RSI indicate further upside potential, making it a buy for higher targets.
- Reliance Industries: A long-term uptrend supported by key technical levels presents a buying opportunity as the stock rebounds from corrections.
Broader Market Sentiment
As traders eye Q3 results and the Union Budget, large-cap stocks like these offer strategic opportunities based on their technical setups. However, market participants should remain cautious of macroeconomic factors and global cues that could impact overall sentiment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making investment decisions.
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