Suzlon Energy, HAL, HDFC Bank: Trading strategies for these buzzing stocks

Domestic equity markets settled lower on Wednesday due strong US economic data that resulted in a rise in dollar and bond yields and increased FPI outflows. The BSE Sensex fell 286.06 points, or 0.44 per cent, to settle at 65,226.04. The NSE's Nifty declined 92.65 points, or 0.47 per cent, to end at 19,436.10.

A few active counters namely Suzlon Energy, HDFC Bank and Hindustan Aeronautics (HAL) are likely to be in focus today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities to say on these stocks ahead of Thursday's trading session:

Suzlon Energy | Buy | Target Price: Rs 36 | Stop Loss: Rs 24
Suzlon Energy is currently demonstrating a strong momentum, as it is trading around its 52-week high. In addition, a consolidation breakout on the daily timeframe suggests continuation of the upward trend. Furthermore, the RSI has shown a breakout, indicating increasing momentum. Given these compelling factors, it can be inferred that Suzlon Energy is displaying robust performance. Looking ahead, the stock may climb towards Rs 36 level. It is recommended to place a stop loss at Rs 24 based on a closing basis  to effectively manage any potential downside risk.

HDFC Bank | Buy | Target Price: Rs 1,670 | Stop Loss: Rs 1,445
After undergoing severe beating in the third week of September, where HDFC Bank fell from a high of Rs 1,670 to Rs 1,489, the stock is showing signs of a revival. Positive divergence in RSI with the formation of long bullish candles at bottom are the indication of trend reversal. Beside this, momentum indicators like stochastic started trading in the oversold zone which also suggest pullback move. Observation of the above factors suggest a bullish move in HDFC Bank towards Rs 1,670 level. One can initiate a ‘buy’ around Rs 1,510-1,520 levels with a stop loss of Rs 1,445 on a daily closing basis.

Hindustan Aeronautics | Sell | Target Price: Rs 1,590 | Stop Loss: Rs 1,980
Price action suggests that HAL could be in for some severe corrective decline in the weeks to come. The stock has been trading below its 20- and 50-DMAs on the daily scale. A failure of the price to move above the previous swing high means that one could see a decline towards Rs 1,850 level. If the Rs 1,850 level is broken, one may see the price falling to Rs 1,570-1,590 levels. Holders of this stock may look to exit the stock on any short-term rally, as the medium-term outlook is bearish with a possibility of a substantial drop in the coming days.

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: Top 10 stocks to watch on October 5, 2023: HAL, Nazara Tech, IEX, Timken, Jubilant FoodWorks, Sheela Foam & others