Tata Communications, Grasim, CSB Bank: How should you trade these buzzing stocks

Reversing the recent weakness, domestic benchmark indices gained on Wednesday ahead of the US Fed policy. review. The BSE Sensex rose 351.49 points, or 0.53 per cent, to settle at 66,707.20. The NSE Nifty added 97.70 points, or 0.50 per cent, to 19,778.30. Select results-bound stocks such as Tata Communications, Grasim Industries and CSB Bank are likely to remain under the spotlight. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

Tata Communications | Buy | Target: Rs 1,920 | Stop Loss: Rs 1,560

Tata Communications is demonstrating a strong momentum, as it is approaching its record high level. In addition, a flag breakout on the weekly timeframe suggests a continuation of the upward trend. Furthermore, the RSI has shown a breakout, indicating increased momentum on the stock. Given these compelling factors, it can be inferred that Tata Communications stock is displaying robust performance. Looking ahead, one can expect the stock to climb towards Rs 1,920 level. It is recommended to place a stop-loss at Rs 1,560 based on a closing prices to effectively manage potential downside risks.

Grasim Industries | Buy | Target: Rs 2,060 | Stop Loss: Rs 1,730

Grasim Industries has formed an ascending triangle formation on the weekly chart. It also witnessed a congestion breakout of a triangle pattern on the daily timeframe with decent volumes. The overall structure of the counter remains favourable, as the stock continues to trade above its key moving averages,  indicating a sustained long-term upward trend. A successful breakthrough above the Rs 1,850 level could pave the way for further upward momentum with a potential target of Rs 2,060 in the near term. During any corrective moves, the major support level to watch out for Grasim Industries would be Rs 1,730.CSB Bank | Buy above Rs 300 | Target: Rs 300 | Stop Loss: Rs 285 CSB Bank has been finding support at its 50-day SMA for the last four weeks. Recently, the stock broke out of its narrow range, with high volumes. It is about to surpass the crucial resistance of the previous swing high of Rs 300. The weekly relative strength index (RSI) has reached above the benchmark level of 50, indicating a rising momentum. The weekly moving average convergence divergence (MACD) indicator crossed the signal line on the upside and has reached above the equilibrium line. The stock witnessed running correction in the week gone by but, considering the primary uptrend, the scrip can be accumulated. Based on the above evidence, one can buy the stock above the Rs 300 level for a trading target of Rs 330. The stop loss can be placed at Rs 285.(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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