IndusInd Bank, Apollo Hospitals, Divis Labs: How should you trade these stocks?

Domestic stock indices snapped a three-day winning streak on Thursday amid weak global cues.  The BSE Sensex dropped 310.88 points, or 0.49 per cent, to settle at 62,917.63. The NSE Nifty fell 67.80 points, or 0.36 per cent, to 18,688.10.

Select stocks such as Apollo Hospital Enterprises, Divis Laboratories and IndusInd Bank are likely to be in limelight in Friday’s session. Here is what Riches Vanara, Technical and Derivatives Analyst at Stoxbox has to say on these stocks ahead of today’s trade:

Apollo Hospital Enterprises | Buy | Target Price: Rs 3,900 | Stop Loss: Rs 3,425
The pattern analysis of Apollo Hospitals on the weekly timeframe indicates that it has transitioned into Phase II of the stage analysis after an elongated gestation period. It has also made a Cup and Handle bullish breakout on improving relative performance compared with the Nifty, following modest professional participation. One can buy the stock for an upside of Rs 5,935.  The anticipate drawdowns is likely to be limited to Rs 4,900 level.

Divis Laboratories | Buy | Target Price: Rs 3,900 | Stop Loss: Rs 3,425
The price action of Divis Labs shows potential signs of bottoming out amid a bullish breakout from the descending channel after the stock declined 49 per cent from its all-time highs. The up move in the current week is seen as a follow-through after a minor consolidation.  On the derivatives front, the strike of Rs 3,500 has seen relatively higher Put writing and the level could offer crucial support. One can buy the stock for a potential upside target of  Rs 3,900 with a stop loss placed at Rs 3,425.

IndusInd Bank | Avoid
IndusInd Bank had witnessed a bullish breakout from an elongated lateral trend. However, the trend range was broken on below-average volumes. The follow-through moves, thus, came on relatively weaker note, which makes IndusInd Bank a potential pullback candidate to initiate longs at lower levels. We reiterate ‘avoid’ at this point in time.

(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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