Whalesbook
Indian Markets Poised for Rebound on March 24
Indian stocks are set for a potential rebound on March 24 after the Nifty 50 dropped 2.6% on March 23 amid global weakness. Hopes for easing geopolitical tensions are boosting sentiment. Experts are highlighting specific stocks expected to benefit from short-covering rallies and technical breakouts.
Infosys: A Key Pick Amid Tech Strength
Infosys has shown strong resilience, holding steady even as the broader market fell. This stability is a positive indicator. With significant short positions built up, the stock could see a short-covering rally. Experts suggest buying Infosys Futures between Rs 1,240–1,250, aiming for Rs 1,320–1,350, with a stop-loss at Rs 1,210.
BPCL and PFC: Energy Sector Focus
Bharat Petroleum Corporation (BPCL) is also eyed for a short-term bounce. High crude oil prices and geopolitical tensions led to significant short positions and pushed the Put-Call Ratio (PCR) to oversold levels. With monthly settlements near and potential drops in international crude prices, a short-covering rally is expected. Buying BPCL Futures between Rs 270–273 is suggested, with a target of Rs 285–295 and a stop-loss at Rs 264. Power Finance Corporation (PFC) shows strong structural development and relative strength, breaking out from a flag-and-pole pattern. Buying is recommended at Rs 335–340, targeting Rs 426, with a stop-loss at Rs 382.
Aurobindo Pharma and L&T: Pharma and Infrastructure Plays
Aurobindo Pharma has achieved a significant technical breakout after weeks of consolidation, indicating a likely return to upward momentum. Positive indicators include a DMI with a positive bias, RSI above 60, and a bullish MACD crossover, all confirming increased buying interest. Traders are advised to buy in the Rs 1,260–1,280 range, targeting Rs 1,390, with a stop-loss at Rs 1,235. Larsen & Toubro (L&T), despite recent drops, shows weakening selling momentum. The RSI is not making new lows, and the MACD is in oversold territory, suggesting a potential technical pullback. A buy recommendation is made for Rs 3,350–3,350, targeting Rs 3,600, with a stop-loss at Rs 3,250.
Power Grid and Prime Focus: Infrastructure and Manufacturing
Power Grid Corporation of India has resumed its uptrend after breaking out of a pennant triangular pattern, showing strong relative strength. The MACD indicator is above its equilibrium line. A buy strategy is recommended, targeting Rs 332 with a stop-loss of Rs 290. Prime Focus is maintaining a higher high-higher low structure and staying above key EMAs. It shows bullish recovery towards its 50-day moving average (DEMA), with the MACD reflecting sustained positive momentum. A target of Rs 325 is set, with a stop-loss at Rs 272.
Stocks Facing Potential Declines: Sell Picks
Not all stocks are showing positive signs. NMDC has broken below a two-month consolidation range and its 200-day moving average (DMA), indicating a potential correction. Selling March Futures between Rs 76–76.60 is advised, targeting Rs 72–70, with a stop-loss at Rs 80. Adani Green Energy has also broken down from a bearish flag pattern. Daily momentum indicators show a bearish crossover, suggesting the downtrend will continue. Selling March Futures between Rs 830–837 is recommended, targeting Rs 785–765, with a stop-loss at Rs 870. Crompton Greaves Consumer Electricals has also broken down from a flag pattern and is trading below key averages, signaling a bearish trend continuation. Sell March Futures between Rs 238–239, targeting Rs 220–215, with a stop-loss at Rs 248.