Ambuja Cement, Tech Mahindra, Axis Bank: How should you trade these buzzing stocks

Domestic benchmark indices ended flat on Tuesday, as the tug of war between bulls and bears continued, ahead of the US Fed's monetary policy outcome later in the day. The BSE Sensex fell 29.07 points, or 0.04 per cent, to settle at 66,355.71. The NSE Nifty added 8.25 points, or 0.04 per cent, to end the day at 19,680.60.

Select results-bound stocks such as Tech Mahindra, Axis Bank and Ambuja Cements, are likely to remain under the spotlight on Dalal Street 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:

Tech Mahindra | Buy above Rs 1,170 | Stop Loss: Rs 1,100
Tech Mahindra has witnessed a breakout of an Inverse Head and Shoulders. However, the breakout was not sustained and the stock has fallen below the neckline support level of Rs 1,170. This failure to maintain the breakout could be seen as a bearish sign. For traders, who already have a position, it is advised to hold their position with a stop-loss placed at Rs 1100. New traders, who entered the stock after the breakout, are advised to hold their position until the price returns to the Rs 1,170 level on a closing basis.

Axis Bank | Buy | Target Price: Rs 1,040 | Stop Loss: Rs 930
Axis Bank is currently in a classical uptrend and is experiencing a multi-month breakout with increased trading volumes. It is forming a Cup and Handle pattern on the daily chart. However, the stock is facing resistance at the Rs 990-1,000 levels. It is taking support at 50-SMA at around Rs 945. If surpassed, the stock may reach the Rs 1,040 level in the near future. On the downside, a strong support level can be found at Rs 930.

Ambuja Cements | Buy | Target Price: Rs 460-480 | Stop Loss: Rs 410

Ambuja Cements is in a downward trend. In the last few trading sessions, the stock has made an astute recovery from the Rs 410-415 zone with strong volumes. The overall structure is distorted, as the scrip trades below its important moving averages (200 SMA). It has a demand zone near Rs 410-415. On the upside, the Rs 460 level is an immediate susceptible area; above this, one can expect a run-up towards Rs 480 level in the near term. The Rs 410 level is an immediate demand level.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)