Wipro, Bharat Forge, IDFC First Bank: How to trade these 3 buzzing stocks

Indian benchmark indices kicked off the week on a muted note and settled lower on Monday on the back mixed global cues. Inflation signals continued to spook the traders. BSE Sensex dropped 384.55 points, or 0.47 per cent, to end the session at 81,748.57. NSE's Nifty50 tanked 100.05 points or 0.4 per cent, to settle at 24,668.25 for the day.

 

Some buzzing stocks including IDFC First Bank Ltd, Wipro Ltd and Bharat Forge Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:

 

IDFC First Bank | Buy | Target Price: Rs 76 | Stop Loss: Rs 60

IDFC First Bank has demonstrated resilience by consistently holding a strong support zone between Rs 60-62, amidst bearish market conditions. This range has been tested multiple times, proving its strength in withstanding selling pressure. Notably, the Rs 60-62 level aligns with the S4 camarilla pivot support and a previous breakout zone, further enhancing its significance as a reliable base. Given this confluence of technical factors, a long position can be considered if the stock closes above 66 daily basis, targeting 76, with a stop-loss placed below 60 on a daily close basis to manage risk effectively.

 

Bharat Forge | Avoid

Bharat Forge has been exhibiting a classic bearish trend on the daily chart, characterized by a series of lower highs and lower lows. This downtrend has led to a significant correction of 29 per cent. Recently, the price action attempted a recovery but faced resistance near the R3 camarilla pivot level, resulting in a reversal, which reinforces the ongoing bearish sentiment. Given these technical signals, it would be prudent to adopt a cautious approach and wait for a decisive breakout above Rs 1386 on a daily closing basis before considering any fresh long positions. Such a confirmation would indicate a potential shift in momentum, reducing the risk of premature entry in a still-uncertain trend.

 

Wipro | Book Profits

Wipro has delivered an impressive rally over the past three months. However, the stock is nearing a critical zone between Rs 320-322 at the current levels, where a bearish Crab harmonic pattern is expected to complete. This zone also aligns with the R5 camarilla pivot resistance, a significant technical hurdle. Considering this confluence of resistance levels, caution is advised. It would be prudent to book profits in the Rs 318-322 range and refrain from initiating fresh long positions, as the risk of a reversal increases in this zone.