Domestic stock indices experienced a volatile trading session on Tuesday but managed to settle higher, thanks to strong buying in IT stocks. The BSE Sensex gained 205.21 points, or 0.31 percent, closing the session at 66,795.14. The NSE Nifty also rose 37.80 points, or 0.19 percent, ending the day at 19,749.25.
As the result season continues, select stocks such as Poonawalla Fincorp, IndusInd Bank, and Hindustan Unilever (HUL) are expected to remain in focus. Investors are eager to assess their performance. Pravesh Gour, Senior Technical Analyst at Swastika Investmart, shared insights on these stocks ahead of Wednesday’s trading session.
Poonawalla Fincorp is drawing attention as it experienced a breakout of the Triangle formation with strong volume on the weekly chart. The stock has retested its breakout trend line and initiated a new leg of the rally towards the Rs 400 level. With the stock trading above its important moving averages, the overall structure looks promising. The MACD and RSI indicators are also supporting the current strength. The immediate hurdle lies at the Rs 400 level, and a successful breakthrough could pave the way for a move towards Rs 440. On the downside, the strong demand zone stands at Rs 350.
IndusInd Bank is exhibiting bullish momentum, indicated by the breakout of a Cup and Handle formation on the weekly chart and a flag formation breakout on the daily chart. The stock is trading above key moving averages, signaling a positive outlook. However, it is currently facing resistance in the Rs 1,410–1,415 range. If the stock manages to surpass this resistance, a target price of Rs 1,540 or higher is likely. In case of a correction, investors should closely monitor the significant support level at Rs 1,300.
Hindustan Unilever is attempting to break out of a long consolidation channel on the daily chart. Additionally, it has witnessed a breakout of a bullish Inverted Head and Shoulders pattern and has retested its neckline support around Rs 2,462 on the weekly chart. With the stock trading above its key moving averages, the structure appears bullish. Conservative investors can consider taking a position at the current level of Rs 2,682, with a stop loss at Rs 2,470, and a target of Rs 3,014.
As investors navigate the market, the buying interest in IT stocks has provided a boost to domestic indices. The volatile trading session serves as a reminder of the ongoing uncertainties in the market. However, with key stocks attracting attention and analysts offering insights, market participants will closely monitor these developments as they make their investment decisions.
