Reliance Industries, Infosys, UPL: How should you trade these blue-chip stocks

Domestic stock indices settled higher on Tuesday, thanks to positive domestic and global cues. However, profit booking at higher levels cut gains in the end. The BSE Sensex settled 273.67 points, or 0.42 per cent, higher at 65,617.84. The NSE Nifty added 92.30 points, or 0.48 per cent, to close at 19,448.20. Select stocks such as Reliance Industries (RIL), Infosys and UPL are likely to hog limelight ahead of the kickstart of the earnings season. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:Reliance Industries | Buy | Target Price: Rs 2,800 | Stop Loss: Rs 2,650 Reliance Industries is in a strong uptrend, where it has broken out of a triangle pattern formation. It created a strong base at Rs 2,200. The overall structure of the counter looks lucrative. In the last trading session, the counter broke a trend-line resistance above Rs 2,670 level and touched a new 52-week high. Momentum indicators are positively poised to support the current strength of the trend. The MACD indicator is supporting the current strength while the RSI is also positively poised. On the upside, Rs 2,800 is the immediate hurdle. Above it, one can expect a move towards Rs 2,880. On the downside, Rs 2,650 is a strong demand zone during any correction.Infosys | Buy for long term | Target Price: Rs 1,600 | Stop Loss: Rs 1,250 Infosys is bottoming out at around Rs 1,250-1,300 on the longer timeframe. It is in a consolidation phase for four months now. The structure looks attractive at these levels. The stock has started the next leg of a rally where Rs 1,400-1,450 is the immediate resistance level. Above it, one can expect a run-up towards the Rs 1,600 level in the long term. On the downside, the level of Rs 1,250 will act as a strong support. The momentum indicator is also positively poised.UPL | Avoid The primary structure of UPL is following the downtrend in the longer time frame. The overall structure is distorted, as the stock trades below its all-important moving averages. The stock has demand zone near Rs 620–640 levels. On the upside, the Rs 700 level is an immediate susceptible area.(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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