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Trading strategies for the hottest stocks: ICICI Bank, Infosys, India Cements


ICICI Bank, Infosys, India Cements: Trading strategies for these buzzing stocks

Infosys has demonstrated bearish sentiment as it gave a breakdown from its Rising wedge pattern on the daily chart. It is currently trading below its key moving averages.

SUMMARY

  • Domestic equity indices settled lower on Wednesday.
  • An analyst from YES Securities is positive on ICICI Bank.
  • The YES Securities has ‘Sell’ call on Infosys, India Cements.

Domestic equity indices continued to bleed on Wednesday. The BSE Sensex tanked 523 points, or 0.81 per cent, to settle at 64,049. The NSE Nifty50 tumbled about 160 points, or 0.83 per cent, to end the session at 19,122.15.

A few buzzing stocks namely ICICI Bank, Infosys and India Cements could be under the spotlight today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

ICICI Bank | Buy | Target Price: Rs 960 | Stop Loss: Rs 845 ICICI Bank is reflecting a modest correction of 2-3 per cent from the current price of Rs 920, subsequent to the breakdown below its congestion zone. The stock is exhibiting a potential demand zone ranging Rs 980-970, which is the 61.8 per cent Fibonacci retracement of the previous upside leg from Rs 810 to Rs 1,008 level. Beside this, oversold stochastic on the daily chart suggest a pullback from the mentioned level. In view of these technical signals, it would be judicious to consider a ‘buy on dips’ strategy for the stock. Buy ICICI bank at Rs 880-870 with a stop loss of Rs 845 for the upside target of Rs 960.

Infosys | Sell | Target Price: Rs 1,270 | Stop Loss: Rs 1,450 Infosys has demonstrated a bearish sentiment, as it gave a breakdown from its rising wedge pattern on the daily chart. It is currently trading below its key moving averages (20-, 50-, 100- and 200-day SMAs) accompanied by persistently lower daily RSI relative to its reference line. A formation of lower high-lows on the daily chart signals a continuation of weakness, emphasising a bearish outlook. Recoveries should be utilised for selling opportunities.

India Cements | Sell | Target Price: Rs 180 | Stop Loss: Rs 210 A channel breakdown on the daily chart of India Cements accompanied by significant trading volume highlight strong resistance levels at elevated prices. The presence of negative crossover of 20- and 50-SMA suggests further downswing in coming sessions. The stock has a critical support in the area of Rs 200-204. A breach below this support level may trigger additional selling pressure, potentially leading to a decline towards Rs 180.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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Published on: Oct 26, 2023, 7:54 AM IST

Posted by: Tarab Zaidi, Oct 26, 2023, 7:50 AM IST

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