Indian benchmark indices settled sharply higher on Wednesday on the back of positive global cues driven by resolution for the US Government shut down and trade deal developments with India. BSE Sensex soared 595.19 points, or 0.71 per cent, to settle at 84,466.51, while NSE’s Nifty50 surged 180.85 points, or 0.70 per cent, to close at 25,875.80 for the day.
Select buzzing exchange stocks including Multi-Commodity Exchange of India (MCX), BSE and Indian Energy Exchange (IEX) are likely to remain under the spotlight of traders for the session today. Here is what a by Laxmikant Shukla, Senior Technical Analyst at YES Securities has to say about these stocks ahead of Thursday’s trading session:
Indian Energy Exchange | Caution | Resistance: Rs 150 | Support: Rs 130
Bearish momentum in IEX is strengthening. The stock remains below all major moving averages, and a recent rebound failed decisively when the RSI could not sustain above 60 and fell below 50 which is a bearish signal. With the MACD histogram now confirming a pickup in selling pressure, a further drop toward Rs 130 is expected. Any rally that fails to break above Rs 150 should be viewed as a selling opportunity.
BSE | Buy around Rs 2,700-2,720 | Target Price: Rs 3,100 | Stop Loss: Rs 2,500
BSE has demonstrated significant strength, breaking decisively above the key Rs 2,700-2,720 resistance level and sustaining above all major daily moving averages. This breakout has now established that zone as a new support base. With the momentum pointing toward the lifetime high, a near-term target is projected in the Rs 3,020-3,100 range. A prudent strategy would be to enter on any pullback toward the Rs 2,700-2,720 support, managing risk with a stop loss below Rs 2,500 for a favorable risk-reward ratio.
Multi-Commodity Exchange of India | Caution | Resistance: Rs 9,800 | Support: Rs 9,200
The sharp run in MCX from Rs 8,800 to Rs 9,760 has met with profit booking, indicating a pause or pullback is underway. Consecutive doji candles confirm this stall in momentum. Traders should watch the Rs 9,200 level for support as a break below it opens the door for a drop toward Rs 9,000-8,800. Until the price can reclaim and hold above Rs 9,800, the odds for a new sustained up move remain low.
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