Indian markets saw another day of profit-taking on August 30, largely led by weak global cues. The Nifty held on to its crucial support at 10,900, while the Sensex broke below 37,000 intraday.
The BSE Public Sector index was down by around 2 percent, followed by the BSE Power index, and the Capital Goods index. On the other hand, metals, FMCG and healthcare stocks saw some buying.
We have collated a list of stocks that were in focus on August 29 because of their price action. The technical outlook is limited to near and medium-terms:
Analyst: Mustafa Nadeem, CEO, Epic Research
Lemon Tree Hotels: No respite in the near term; could fall towards Rs 44
Lemon Tree witnessed a sharp fall on August 29 after reports suggested that more than 30 million equity shares of the company changed hands via block deals.
In terms of technical outlook, the stock is in a bearish momentum, with price action suggesting no reversal in the primary trend, which has been largely sideways to bearish since it got listed.
The stock may continue the bearish momentum and can slide further towards Rs 44.
Indiabulls Housing Finance: Technical bounce towards Rs 500 possible
Indiabulls Housing Finance has already lost over 60 percent in the last year and will be removed from the index.
The stock is trading in a downward channel and the prices are making lower tops and lower bottoms, a bearish sign.
In the short term, the double bottom is seen in price action, while RSI on these bottoms has indicated a divergence. A short-term swing can be seen in prices that can lead to an upside target of Rs 500-525, with a stop loss placed below Rs 425.
Sun Pharma: Short-term buy signal for an upside target of Rs 480
Sun Pharma rallied after reports suggested that the Securities and Exchange Board of India (SEBI) had cleared the company of charges of irregularities.
In terms of technicals, a triangle pattern is seen in price action and a breakout is impending. With price action favouring the bullish bias, we believe that a close above Rs 444 can trigger a short-term buy signal for an upside target of Rs 480, and a stop loss can be at Rs 412.
Nestle India: Stay put as the stock is heading towards Rs 14,000 levels
The upcoming addition to the Nifty has further sparked a bullish trend, with prices breaking out from a pennant formation, a bullish continuation pattern.
The upside trend may continue, given the recent breakout and buy on dips should be utilised for a target of Rs 13,700-14,600, and a stop loss can be placed below Rs 12,100.
RBL Bank: Take a contra call as long as the stock trades above Rs 290
RBL Bank came under selling pressure on August 29 over speculation of insider trading. The bank, however, later clarified that market transactions by employees were a “routine activity” with regular exercise of ESOPs (employee stock ownership plans) and sale of equity shares thereafter.
In terms of technicals, a high volatility price action was seen, with a selloff indicating that price may stabilise in the short term if long-term support at Rs 290 holds.
A cool-off in volatility can be followed by a consolidation in the short term. At present, having a contra view may result in catching a falling knife, hence it is important for stock to sustain Rs 290 to see further price movement.
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