Bajaj Finserv, Dr Reddy's Labs, Escorts Kubota: How to trade these 3 stocks

As the bulls and bears continue to fight for the upper hand on the Dalal Street leading to high volatility, Vishnu Kant Upadhyay, AVP - Research and Advisory at Master Capital Services has shared three stocks- Escorts Kubota Ltd, Bajaj Finserv Ltd and Dr Reddys Laboratories Ltd- from a trading point of view. The analyst has suggested to 'buy' all the three counters. Here's what the analyst has to say about these counters:

Escorts Kubota | Buy | Target Price: Rs 3,820-3,900 | Stop Loss: Rs 3,300

Escorts Kubota is showing signs of resilience as it consolidates above a crucial trendline support near Rs 3,400, aligned with the 55-week EMA. The long-term uptrend remains intact, with the stock forming higher lows on the weekly chart. Momentum indicators like RSI are stabilizing near the 45 level, suggesting a potential recovery in strength, while MACD is attempting to converge, hinting at diminishing bearish momentum. The ongoing consolidation above rising trend line support is giving indication of rally toward Rs 3,820-3,900 in the medium term. Traders may consider this as an accumulation opportunity with a stop-loss below Rs 3,300.

Dr Reddy's Laboratories | Buy | Target Price: Rs 1,345-1,360 | Stop Loss: Rs 1,169

Dr Reddy's Laboratories is currently trading near its ascending trendline support at Rs 1,200, which coincides with the 100-week EMA. This confluence zone suggests strong demand at lower levels, preserving the long-term uptrend. The RSI has stabilized near 45, indicating a potential recovery from oversold conditions, while the MACD is showing signs of flattening, suggesting reduced bearish momentum. Considering the higher highs and higher lows pattern, prices are looking to resume their northward journey towards Rs 1345-1360. Traders may consider accumulating with a stop-loss below Rs 1,169.

Bajaj Finserv | Buy | Target Price: Rs 1,810 | Stop Loss: Rs 1,560

After witnessing a healthy correction of around 24 per cent from its all-time high, Bajaj Finserv is now consolidating near a crucial horizontal support zone, indicating a potential reversal. The weekly chart shows the stock holding firm above the ascending trendline support, reflecting a structurally strong uptrend in place. Volume patterns suggest declining selling pressure in recent weeks, hinting at exhaustion of the downtrend. Furthermore, momentum indicators like RSI are stabilizing, signaling a potential recovery in the stock’s strength.