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Future Retail, IndusInd Bank, L&T: How to trade these news-driven stocks?

After dipping below 200-weekly moving average (WMA), Nestle India has showed tremendous strength and momentum.
The benchmark indices were trading in the red in the morning deals on Monday. The S&P BSE Sensex was down over 0.5 per cent to 40,453 levels while the NSE's Nifty50 index was quoting 0.6 per cent lower at 11,855 levels. That said, a number of individual stocks were trading actively in the trade owing to their September quarter results or company-specific developments.

Here's a look at some of the buzzing stocks of the day and what do charts indicate for them.  

Larsen & Toubro Ltd (LT): After facing resistance at 100-day moving average (DMA), placed at Rs 925, since the last one month, the counter has now managed to conquer the level decisively. This demonstrates the potential upside towards Rs 975, which is its 200-DMA. The immediate support comes in at Rs 940 levels and it needs to be held on the closing basis. Furthermore, the technical indicator, the Moving Average Convergence Divergence (MACD) is at healthy levels, as it is likely to conquer the zero line upward. CLICK HERE FOR THE CHART
 

Nestle India Limited (NESTLEIND): After dipping below the 200-weekly moving average (WMA), which was around 15,900 levels in September, this counter showed tremendous strength and momentum that resulted in a reversal and accumulation below 200-WMA. Thereafter, it did struggle to conquer the 200-WMA, placed around 16,050 which led to selling pressure. At the current levels of Rs 16,250, which is around 200-WMA, this counter needs to show stability and a breakout above Rs 16,500 levels for further upside. CLICK HERE FOR THE CHART

 

Reliance Industries Ltd (RELIANCE): This counter is facing a selling pressure over Rs 2,300 levels, as per the daily chart. Nevertheless, till Rs 2,000 levels is defended aggressively (on the closing basis), the upside bias may see a firm rebound in the price. The immediate resistance falls at Rs 2,200 with an intraday support coming at Rs 2,025 levels, as per the daily chart. CLICK HERE FOR THE CHART

 

IndusInd Bank Ltd (INDUSINDBK): Over the last two months, this counter has failed to defeat the selling pressure emerging over Rs 640 levels. Going forward, if this trend continues, then downside support of Rs 590 levels may get breached.  Till now, the current scenario is indicating a formation of consolidation phase in the range of Rs 640-Rs 590 levels. CLICK HERE FOR THE CHART

 

Tech Mahindra Ltd (TECHM): The overall trend is bullish above the support of Rs 800 levels. This might reflect a sentimental support, yet the significance of this level determines the upside rally towards Rs 910 levels, as per the daily chart. Although technical indicators like Relative Strength Index (RSI) and MACD are in no support of the upside as they have made negative crossovers, the price is not showing any major weakness. CLICK HERE FOR THE CHART

 

Future Retail Limited (FRETAIL): With the “Lower High, Lower low” formation on the daily chart, the overall trend seems to be in a downward spiral. This may continue to remain intact, till the immediate resistance of Rs 81 levels is not defeated with aggressive volumes. Upon failing so, the downside may see Rs 66 and Rs 60 levels. CLICK HERE FOR THE CHART



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