Reliance Industries, Eicher Motors, MGL: How should you trade these buzzing stocks

Domestic equity markets staged a smart recovery during the trading session on Wednesday as the headline indices settled marginally higher, despite the weak global cues. BSE Sensex added 137.50 points, or 0.21 per cent, to end the session at 65,539.42, while NSE's Nifty50 gained 30.45 points, or 0.16 per cent, to settle at 19,465. Select stocks such as Reliance Industries, Eicher Motors and Mahanagar Gas are likely to remain under the spotlight on Dalal Street for the session today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities to say on these stocks ahead of Thursday's trading session:Eicher Motors | Range-bound | Resistance: Rs 3,480 | Support: Rs 3,160 Eicher Motors has been hammered sharply in the last three days. The scrip has been fallen around 5 per cent from the recent swing high of Rs 3,478. The sharp selloff has led the price to drop towards its prior multi week support zone of Rs 3,280-3,300. Around the similar juncture, the stock has formed a hammer candlestick reversal pattern, but it failed to carry out the momentum further. Going ahead if the mentioned support zone breaches decisively then selling pressure would get extended towards Rs 3,160 levels where its major support is seen.  Mahanagar Gas | Buy | Target Price: Rs 1,050 | Stop Loss: Rs 950 After a medium-term correction, eventually Mahanagar Gas took support near Rs 970-960 zone. Post five days correction, the stock has formed a doji candlestick pattern which suggests halt in the downswing. On the daily chart, stock has taken support from its 200-DMA’s and reversed the trend while showing oversold stochastic on the daily chart which indicates the possibility of a pullback move from the current levels. Looking at the overall pattern it offers buying opportunities for the positional target of Rs 1,050 with stop loss of Rs 950 on closing basis.Reliance Industries | Buy | Target Price: Rs 2,800 | Stop Loss: Rs 2,450 Reliance Industries has seen trading in an upwards sloping parallel channel pattern and has been trading with higher top and higher bottom formation since last few weeks after taking support from its 20-DMA’s. On the indicator front, the super trend indicator is indicating a bullish continuation on the daily timeframe and the ichimoku cloud is also suggesting a bullish move as the price is trading above the conversion and base line. Observation of the above factors indicates that a bullish move in Reliance is possible for targets up to Rs 2,800. One can initiate a buy trade in between the range of Rs 2,560-2,570, with a stop loss of Rs 2,450 on daily closing basis.(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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