NMDC, Nalco, Grasim: Trading strategies for these buzzing stocks

Domestic equity markets dropped on Monday on profit booking after a two-day rally. The BSE Sensex dropped 325.59 points, or 0.50 per cent, to 64,933.87. The NSE Nifty shed 82 points, or 0.42 per cent, to end the day at 19,443.55.

A few buzzing stocks of Dalal Street namely National Aluminium Company Ltd (Nalco), Grasim Industries Ltd, and NMDC Ltd are likely to remain under the spotlight today. Here is what Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher has to say on these stocks ahead of Wednesday's trading session:

Grasim Industries | Buy | Target Price: Rs 2,800 | Stop Loss: Rs 1,850
Grasim has made a higher-bottom formation pattern on the daily chart, taking support at around Rs 1,850 levels, giving a bounce to signify further more upside movement in the coming days. The stock sustained above its 50-DMA in the daily chart. With decent volume participation and the RSI indicator on the rise, one can expect the stock to move further upward towards Rs 2,100 level . One can ‘buy’ the stock for an upside target of Rs 2,800 keeping a stop loss at Rs 1,850

National Aluminium Co | Buy | Target Price: Rs 105 | Stop Loss: Rs 87
Nalco witnessed a correction from a 52-week high of Rs 105. It bottomed out near its 200 DMA, which was at Rs 87. It has made double bottom formation pattern at around those levels on the daily chart. There is a revival in the stock, and with the RSI indicating a trend reversal for a ‘buy’; the stock looks attractive and has the potential for further upward movement in the coming days. One can buy the stock for an upside target of Rs 105, keeping a stop loss a Rs 87.

NMDC | Buy | Target Price: Rs 200 | Stop Loss: Rs 164
NMDC has been on a good run since Rs 125 level. It has now closed above the previous peak level of Rs 164, with increased volume participation in recent days. Also, the stock is  trading above all the important moving averages. The RSI being strong and on the rise. One can expect a strong upward move still further to around Rs 200 level. Buy the stock, keeping a stop loss at Rs 162.
 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Also read: Stock recommendations for November 15 2023: Tata Power, BHEL, Manappuram Finance, Union Bank and Oil India

Also read: Stocks in news: Adani Energy, IndusInd Bank, Suzlon Energy, Persistent Systems, and more