According to Kotak Securities' Amol Athawale, VP - Technical Research, the Indian stock market benchmarks ended with heavy losses on Wednesday, 22 April, due to profit booking at elevated levels. The Nifty 50 plunged 199 points, or 0.81%, to settle at 24,378.10, while the Nifty IT index dropped nearly 4%. As reported by Mint, Athawale expects weak sentiment to persist as long as the market remains below 24,500, with potential downside targets of 24,300 and further weakness to 24,200. On the upside, above 24,500, the index could revisit the 24,600–24,675 range.
Athawale recommends SBI Cards and Payment Services as a short-term buy with a target price of ₹730 and stop loss at ₹660. According to the analysis reported by Mint, after the declining trend, SBI Cards shares reversed from their important demand zone and formed a rounding bottom chart pattern on the daily scale. The technical indicator RSI is indicating a further uptrend from current levels, with the stock trading at previous close of ₹686.20. Athawale noted that as long as the stock trades above ₹660, the bullish texture is likely to continue, with potential movement up to ₹730.
The second recommendation is Pidilite Industries with a target price of ₹1,510 and stop loss at ₹1,370. As reported by Mint, Athawale highlighted that Pidilite Industries shares have given a breakout from an inverse head and shoulder chart pattern on the daily charts. The stock was trading at previous close of ₹1,419. For positional traders, ₹1,370 is the decisive level, with trading above this level indicating continuation of the uptrend till ₹1,510. However, if the stock closes below ₹1,370, traders may prefer to exit from long positions.
The third recommendation is DLF with a target price of ₹650 and stop loss at ₹590. According to the analysis reported by Mint, on the daily and weekly scale, DLF shares are in a rising channel chart formation with higher high and higher low series patterns. The stock was trading at previous close of ₹610.65. Athawale noted that for the next few trading sessions, ₹590 could be the trend decider level for the bulls, with potential further uptrend towards ₹650 if it holds above this level.
