L&T, Canara Bank, Tata Power: Key support and resistance levels for these buzzing stocks

Indian equity markets continued to bleed on Tuesday amid the stretched valuations and political uncertainty. However, select sectors like IT, realty and FMCG stood out for the day. BSE Sensex dropped 383.69 points, or 0.52 per cent to settle at 73,511.85. NSE's Nifty50 index tumbled 140.20 points, or 0.62 per cent, to end the session at 22,302.50.

Some buzzing stocks namely Larsen & Toubro Ltd (L&T), Canara Bank and Tata Power Co Ltd are likely to remain under the spotlight of traders for the session today. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:

Larsen & Toubro | Cautious | Resistance: Rs 3,600 | Support: Rs 3,280-3,200

L&T has witnessed a breakdown of the head and shoulder pattern formation. It is forming a series of lower highs and lower lows, indicating a negative bias. The structure of the counter looks distorted as it is trading below all its important moving averages, which reconfirms a bearish trend. On the downside, Rs. 3,280 will be the support level, and below this 200-DMA at around Rs 3,200 will be the next demand level, while on the upside, Rs 3,600 may be an important resistance. The momentum indicator RSI is also negatively poised, whereas MACD is supporting the downtrend. This suggests that the counter may continue to fall in the near term.

Tata Power Company | Buy | Target Price: Rs 460-500 | Stop Loss: Rs 400

Tata Power is in a strong uptrend where it has given a breakout of a triangle formation. It created a strong base at 20-DMA, and it also had a previous breakout level at Rs 430. However, Rs 460 is an immediate trendline resistance where it may see some pause, but above this, it is likely to head towards Rs 500 levels. On the downside, Rs 400 is major support at any correction at around 50-DMA. MACD and RSI are supporting the strength of the current movement.

Canara Bank | Buy | Target Price: Rs 620-660 | Stop Loss: Rs 530

Canara Bank has witnessed a massive rally from Rs 270 to Rs 630 in a period of one year. But from the last 2-3 trading sessions, we have shown profit booking from the higher levels and closed below its important moving averages (20, 50-DMA). For the long term investors, the structure of the counter looks good, as it is still trading above 100 and 200 DMA. The pattern suggests an immediate target of Rs 620, while it has the potential to move further upside to the 660 level. On the downside, Rs 530 will be an immediate support level.