Market Analysis: Expert Recommendations on Tata Power, Suzlon, and BHEL

The Indian stock market faced a turbulent start to the week, witnessing a notable downturn spurred by extensive sell-offs, a rise in crude oil prices, and escalating geopolitical tensions. On Monday, the Bombay Stock Exchange (BSE) Sensex plunged 638.45 points, or 0.78 percent, concluding the session at 81,050.00. The National Stock Exchange’s (NSE) Nifty50 also experienced a significant drop, tumbling 218.85 points, or 0.87 percent, to close at 24,795.75 for the day.

Significant attention is being directed towards specific stocks, with companies such as Tata Power, Suzlon Energy, and Bharat Heavy Electricals Limited (BHEL) being scrutinized by traders. Jigar S Patel, Senior Manager for Technical Research at Anand Rathi Shares and Stock Brokers, has provided insights into these stocks in anticipation of Tuesday’s trading activities.

Tata Power is recommended as a potential ‘buy,’ with a target price set at Rs 465 and a suggested stop-loss of Rs 423. The stock recently demonstrated bullish potential, breaking past a vital resistance level at Rs 471. However, this upward breakout was short-lived as the stock retreated into its previous consolidation range. This range coincides with both the flat Ichimoku Cloud and the 100-day exponential moving average (DEMA), which are seen as crucial support levels. Given these conditions, traders are advised to establish long positions within the price range of Rs 435 to Rs 440.

In contrast, BHEL remains on the ‘avoid’ list primarily due to its positioning below the 200-DEMA, a critical indicator of long-term price trends. Furthermore, the stock’s placement beneath the Ichimoku Cloud suggests a lack of upward momentum, projecting a bearish or sluggish outlook for forthcoming sessions. Another concerning factor is the decline in the Relative Strength Index (RSI), currently positioned below 40, indicating reduced momentum and signaling a bearish phase. Investors are advised against initiating new long positions, instead encouraged to seize any short-term price increases to secure profits.

For Suzlon Energy, the recommendation is to ‘buy’ at Rs 66, targeting a price of Rs 76, with a stop-loss set at Rs 61. The stock recently exhibited a bearish divergence near Rs 86, resulting in a price correction of approximately 17-18 percent to around Rs 71. Presently trading within the Ichimoku Cloud, Suzlon Energy is anticipated to find solid support at the 100-DEMA, aligning with the lower boundary of the cloud. Additionally, the RSI indicator is nearing the oversold territory at 30, suggesting that the downward momentum might be weakening. This scenario presents the Rs 66 level as a potential entry point for new positions.

Analysts reiterate that these insights should be seen as informational purposes only and not as definitive investment advice. They recommend consulting with a certified financial advisor before making investment decisions.