The beginning of July on Dalal Street was marked by a bullish sentiment, as the benchmark stock surged with active buying in index heavyweights. The BSE Sensex recorded a gain of 486.49 points, or 0.75 percent, closing at 65,205.05, while the NSE Nifty advanced by 133.50 points, or 0.70 percent, settling at 19,322.55.
Today, the focus will be on specific stocks, namely Maruti Suzuki India, Wipro, and Axis Bank. Pravesh Gour, Senior Technical Analyst at Swastika Investmart, shares insights on these three stocks ahead of Tuesday’s trading session:
Maruti Suzuki India | Buy | Target Price: Rs 10,000-11,000 | Stop Loss: Rs 9,500 Maruti Suzuki recently broke out of an Inverse Head and Shoulders pattern on the weekly chart. After retesting its neckline support, the stock is experiencing a strong rally towards the Rs 10,000 level. Additionally, a Cup and Handle pattern is forming on the daily chart, indicating a favorable overall structure for the stock. It remains above key moving averages, signifying a sustained long-term upward trend. The immediate resistance lies at Rs 10,000, and a breakthrough could propel the stock towards Rs 11,000 or higher. On the downside, substantial support is expected around Rs 9,500, where a cluster of moving averages should act as a cushion during corrections.
Axis Bank | Buy | Target Price: Rs 1,000 | Stop Loss: Rs 930
Axis Bank is currently exhibiting a classic uptrend. It recently broke out with increased trading volumes, forming a Cup and Handle pattern on the daily chart. Moreover, it surpassed a Triangle pattern on the weekly chart. Following a retest of the breakout level at Rs 810, the stock has embarked on a fresh rally towards all-time high levels. The next significant resistance awaits at Rs 1,000, and if breached, the stock may ascend to Rs 1,040 in the near future. On the downside, strong support is anticipated at Rs 930.
Wipro | Buy (only for long-term) | Target Price: Rs 410-500 | Stop Loss: Rs 340 Wipro’s primary structure indicates a continuous formation of a downtrend channel. However, the stock recently broke its neckline support around Rs 410, accompanied by robust volumes. It is currently trading above all its moving averages, presenting a mildly positive sign. Most momentum indicators suggest oversold conditions, with Rs 340 serving as a crucial support level where buying interest is expected. On the upside, immediate resistance levels lie between Rs 410 and Rs 440, while the next significant resistance is at Rs 500.
Investors should closely monitor these stocks during Tuesday’s trading session, as they may present potential trading opportunities. Maruti Suzuki India’s breakout pattern, along with the Cup and Handle formation, indicates positive momentum. Similarly, Axis Bank’s uptrend and Cup and Handle pattern suggest further upside potential, while Wipro’s recent neckline breakout supports a positive long-term outlook.
Please note that these recommendations are based on technical analysis and should not be construed as financial advice. Traders and investors are urged to conduct their own research and consult with qualified financial professionals before making any investment decisions.
Disclaimer: This news article is based on information available at the time of writing and should not be considered as financial advice. The stock market carries inherent risks, and caution should be exercised while trading or investing in stocks.