Domestic stock indices Monday’s session with modest gains, ahead of the Union Budget and the US Federal Reserve’s policy review. Sensex gained 169.51 points, or 0.29 per cent, to 59,500.41. Nifty settled the day at 17,648.95, up 44.60 points, or 0.25 per cent.
Select stocks such as Ambuja Cements, Sun Pharmaceuticals and Bajaj Finserv were on traders’ radar. Here is what Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers suggests has to say on these stocks for Tuesday’s trading session:
Ambuja Cements | Buy | Target Price: Rs 425 | Stop Loss: Rs 299 |
In the last five trading sessions, Ambuja Cements stock has nosedived 34 per cent. At the current juncture, the scrip is trading near its crucial historical support zone of Rs 330-340 levels. From an indicator perspective, daily RSI and MACD are displaying extreme oversold situations. One can buy ths stock in a small tranches in the range of Rs 340-350 and later in the Rs 320-330 range, with a target of Rs 425. Keep a stop loss at Rs 299 level.
Sun Pharmaceuticals | Book Profits | Price Range: Rs 1,045-1,070 |
Sun Pharma stock looks lucrative but one needs to be cautious because it is trading near its Triple Top levels of around Rs 1,055-1,070. On a daily scale, a Shooting Star formation is seen near Rs 1,070 level, which could be an early warning. On the indicator front, the daily RSI is displaying negative divergence while the daily MACD is losing upside momentum, indicating some pullback on the counter. One can book profit in the range of Rs 1,045-1,070, if tested. A fresh buy is not advised at current levels.
Bajaj Finserv | Buy | Target Price: Rs 1,450 | Stop Loss: Rs 1,264 |
In January, the stock witnessed a correction of 15 per cent. The interesting thing about this fall is that selling volume did not increase amid a fall decrease in stock price, which is an anomaly with respect to volume spread analysis. In other words, volume is not complimenting the fall in price. It indicates that gradually the bears are losing steam. In the last two sessions, a Doji candle followed by an Inverted Bullish Hammer is seen, which hints towards an early reversal in the counter. One can buy Bajaj Finserv near Rs 1,310-1,340 levels, with an upside target of Rs 1,450. Place stop loss at Rs 1,264.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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