Zomato, Trent, Bharat Electronics: How to trade these 3 buzzing stocks
An analyst from Anand Rathi said that BEL has shown a shift in momentum by forming a structure of higher highs and higher lows after a consolidation phase of nearly three months, indicating a reversal.
- Dec 24, 2024,
- Updated Dec 24, 2024 8:26 AM IST
Indian benchmark indices staged a strong rebound on Monday, after a 5-day sell-off triggered by US Fed's hawkish tone. However, markets are likely to remain sideways ahead of the new year. BSE Sensex surged 498.58 points, or 0.64 per cent, to end the session at 78,540.17. NSE's Nifty50 soared 165.95 points or 0.7 per cent, to settle at 23,753.45 for the day.
Some buzzing Nifty50 stocks including Bharat Electronics Ltd (BEL), Trent Ltd and Zomato Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:
Bharat Electronics | Buy | Target Price: Rs 320 | Stop Loss: Rs 275
BEL has shown a shift in momentum by forming a structure of higher highs and higher lows after a consolidation phase of nearly three months, indicating a reversal from its previous downtrend. Notably, the stock has broken and sustained above a bear trendline, signalling strength and a potential continuation of its upward trajectory. Additionally BEL has achieved a 50 per cent retracement of its recent upward move from the bottom on the daily charts, which is often viewed as an attractive level for entry by technical traders. Furthermore, the current price action is finding support near its previous breakout level, reinforcing the stock's bullish outlook. Traders can consider buying in the Rs 295–285 zone, with an upside target of Rs 320. However, a strict stop-loss below Rs 275 is advised to manage risk effectively.
Zomato | Book Profits
Zomato has formed a head and shoulders pattern at the current juncture, a bearish reversal structure signalling a potential trend shift from bullish to bearish. This pattern comprises three peaks: a higher central peak (head) flanked by two lower peaks (shoulders), with a neckline connecting their lows. Zomato has not only completed this pattern but also broken below the neckline, confirming a bearish signal. This neckline breach indicates increased selling pressure and a likelihood of further downside. Traders are advised to book profits in the Rs 280–275 zone and avoid initiating new long positions.
Trent | Cautious
Trent has been consolidating in the range of Rs 6,800–7,200 for the past 10–15 sessions at the current juncture, reflecting indecisiveness among market participants. Despite repeated attempts, it has not given a clear breakout, leaving its next directional move uncertain. A decisive close above Rs 7,200 would signal strength and could trigger fresh buying momentum. In such a scenario, the stock is likely to head toward a target of Rs 7,600. To manage risk effectively, a stop-loss below Rs 7,000 on a daily closing basis is recommended. Until a breakout occurs, traders should remain cautious and wait for confirmation.
Indian benchmark indices staged a strong rebound on Monday, after a 5-day sell-off triggered by US Fed's hawkish tone. However, markets are likely to remain sideways ahead of the new year. BSE Sensex surged 498.58 points, or 0.64 per cent, to end the session at 78,540.17. NSE's Nifty50 soared 165.95 points or 0.7 per cent, to settle at 23,753.45 for the day.
Some buzzing Nifty50 stocks including Bharat Electronics Ltd (BEL), Trent Ltd and Zomato Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:
Bharat Electronics | Buy | Target Price: Rs 320 | Stop Loss: Rs 275
BEL has shown a shift in momentum by forming a structure of higher highs and higher lows after a consolidation phase of nearly three months, indicating a reversal from its previous downtrend. Notably, the stock has broken and sustained above a bear trendline, signalling strength and a potential continuation of its upward trajectory. Additionally BEL has achieved a 50 per cent retracement of its recent upward move from the bottom on the daily charts, which is often viewed as an attractive level for entry by technical traders. Furthermore, the current price action is finding support near its previous breakout level, reinforcing the stock's bullish outlook. Traders can consider buying in the Rs 295–285 zone, with an upside target of Rs 320. However, a strict stop-loss below Rs 275 is advised to manage risk effectively.
Zomato | Book Profits
Zomato has formed a head and shoulders pattern at the current juncture, a bearish reversal structure signalling a potential trend shift from bullish to bearish. This pattern comprises three peaks: a higher central peak (head) flanked by two lower peaks (shoulders), with a neckline connecting their lows. Zomato has not only completed this pattern but also broken below the neckline, confirming a bearish signal. This neckline breach indicates increased selling pressure and a likelihood of further downside. Traders are advised to book profits in the Rs 280–275 zone and avoid initiating new long positions.
Trent | Cautious
Trent has been consolidating in the range of Rs 6,800–7,200 for the past 10–15 sessions at the current juncture, reflecting indecisiveness among market participants. Despite repeated attempts, it has not given a clear breakout, leaving its next directional move uncertain. A decisive close above Rs 7,200 would signal strength and could trigger fresh buying momentum. In such a scenario, the stock is likely to head toward a target of Rs 7,600. To manage risk effectively, a stop-loss below Rs 7,000 on a daily closing basis is recommended. Until a breakout occurs, traders should remain cautious and wait for confirmation.