Tata Steel, Ultratech, Indian Hotels: How should you trade these buzzing stocks?

Domestic stock indices on Friday extended their recent fall for the second straight session ahead of the key inflation data and the US Fed meeting this coming week. He BSE Sensex dropped 223.01 points, or 0.35 per cent, to close at 62,625.63. The NSE Nifty declined 71.15 points, or 0.38 per cent, to settle at 18,563.40.

Select stocks such as Tata Steel, Ultratech Cement and The Indian Hotels Company would be in focus on Monday after the recent price actions. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

Indian Hotels Company | Hold | Target Price: Rs 420-450 | Stop Loss: Rs 360

Indian Hotels is witnessing a correction of its prior up move on the daily chart. The stock has good support in the Rs 375–370 range. This is where the buying may emerge. The stock is outperforming the benchmark indices. Hence, one can hold the stock with a stop loss of Rs 360 for a target Rs 420-450 levels in the next couple of weeks.

 
Tata Steel | Hold | Target Price: Rs 119-125 | Stop Loss: Rs 104

Tata Steel is trading sideways on the weekly chart and giving no clear direction to the trend. This is confirmed by the momentum indicators, viz., RSI and MACD, which are trading flat. The stock is underperforming the benchmark indices. Hence, one can hold the stock with a stop loss of Rs 104 for a target of Rs 119-125 levels in the next couple of months.

Ultratech Cement | Buy | Target Price: Rs 8,452-8,734 | Stop Loss: Rs 7,888
Ultratech Cement is making a higher-high formation, which is a sign of strength. The momentum indicator RSI is positively poised. The stock is outperforming the benchmark indices. Combining all the above parameters, it is evident that the momentum on the upside is likely to continue. Hence, one can buy the stock at current prices with a stop loss of  Rs 7,888 for a target of Rs 8,452-8,734 levels in the next couple of weeks.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)