HDFC Bank, Cipla, Birlasoft: Trading strategies for these 3 buzzing stocks

Indian benchmark indices recovered from Wednesday's jitters as the assurance of political stability led the broad based buying on the Dalal Street. All eyes are now set on RBI's monetary policy due later this week. BSE Sensex zoomed 2,303.19 points, or 3.20 per cent to settle at 74,382.24. NSE's Nifty50 index surged 735.85 points, or 3.36 per cent, to end the session at 22,620.35.

Some buzzing stocks namely Cipla Ltd, Birlasoft Ltd and HDFC Bank Ltd are likely to remain under the spotlight of traders for the session today. Here is what analysts at Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

Cipla | Buy | Target Price: Rs 1,625 | Stop Loss: Rs 1,440

Cipla is experiencing a strong secular uptrend, consistently trading above both its long and short moving averages on the daily chart. Recently, the stock has gained significant momentum, nearing its 52-week high. Its ability to stand above its prior day's candle and defend its prior week's low further supports a bullish trend. Additionally, the 14-period RSI has made a positive crossover, reinforcing this optimistic outlook. Based on these technical indicators, we recommend buying Cipla in the range of Rs 1,500-1,505, with a stop-loss set at Rs 1,440 and a target price of Rs 1,625.

Birlasoft | Buy | Target Price 725 | Stop Loss: Rs 575

Birlasoft has plunged from its lifetime high of Rs 861 to below its 200 SMA on the daily chart, losing almost 34 per cent. However, after this correction, the stock stabilized near its previous swing low and began to recover over the last couple of sessions. The stock price has made a significant move, surpassing the crucial 20 SMA levels and now appears to be gradually reversing.  On the oscillator front, both the stochastic and MACD indicate a reversal from oversold territory, suggesting a potential upward trend in the near future. Therefore, we recommend buying BSOFT around Rs 620-630 with a stop-loss at Rs 575 and a target of Rs 725.

HDFC Bank | Buy | Target Price 1,720 | Stop Loss: Rs 1,360

HDFC Bank has undergone a gradual decline from its peak at Rs 1,721 but now appears to be stabilizing and finding support around the Rs 1,425-1,450 range which has proven to be a robust support level based on historical chart patterns. Recent indicators suggest a potential turnaround, with the RSI poised for a positive crossover on the weekly chart. There's evident improvement, signaling significant upside potential and continued momentum. A decisive close above Rs 1,600 would reinforce this trend, likely paving the way for further upward movement towards the next target of Rs 1,720 in the foreseeable future. Consider initiating a buy position within the Rs 1,520-1,540 range with a stop loss set at Rs 1,450 based on daily closing prices.

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