Nestle India, Axis Bank, M&M: How should you trade these buzzing stocks?

Domestic stock indices extended gains to the second straight session on Tuesday amid strong domestic economic data. The BSE Sensex gained 418.45 points, or 0.67 per cent, to settle at 63,143.16. The NSE's Nifty added 114.65 points, or 0.62 per cent, to 18,716.15.

Analysts believe select stocks such as Nestle India, Axis Bank and Mahindra & Mahindra (M&M) could be in the limelight today. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:

Nestle India | Buy | Target Price: Rs 23,500-24,000 | Stop Loss: Rs 21,300

Nestle India is in a strong bullish setup where it has given a breakout of flag formation on the shorter time frame. It is moving in a long uptrend channel formation on the long timeframe. The counter has formed a series of higher high-lows, which is characteristic of an uptrend. This pattern indicates that buyers are willing to pay higher prices over time. The MACD indicator is supporting the current strength while the momentum indicator RSI is also positively poised. On the upside, the Rs 23,500 level is an immediate hurdle. One can expect a move towards the Rs 24,000 level on a breach of the level. On the downside, a cluster of moving averages at around Rs 21,300 level would be a strong demand zone in any correction.

Axis Bank | Hold | Target Price: Rs 1,000-1,040 | Stop Loss: Rs 930
Axis Bank is in a classical uptrend. It is also witnessing a multi-month breakout with a rise in volumes. The stock has witnessed a breakout of a rounding formation on the daily chart. On the weekly chart, it has broken out of a triangle pattern formation and retested its breakout level at Rs 810. The stock has started a new leg of rally towards a new all-time high. On the upside, the level of Rs 1,000 is the next critical resistance level. Above this, the stock may reach the Rs 1,040 level in the near term. On the downside, the Rs 930 level is a strong support area.

Mahindra & Mahindra | Hold | Target Price: Rs 1,420-1,500 | Stop Loss: Rs 1,320

M&M has given a V-shaped recovery from Rs 1,120–1,130 levels with strong volumes, which was multi-year support range for the counter. The overall structure looks lucrative, as the stock trades above its key moving averages. The MACD indicator is supportive of the counter's current strength, indicating potential upward momentum. Additionally, the RSI is positively poised. The stock has a psychological resistance at Rs 1,420. If the stock manages to break above this resistance with conviction, the Rs 1,500 level will be the next short-term target. On the downside, if there is a correction, the major support level is seen at Rs 1,320 level.

(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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