M&M, Bank of Baroda, Godrej Consumer: How should you trade these buzzing stocks

Domestic benchmark indices settled higher on Friday after a two-day fall. The relief rally was triggered by buying in select heavyweights. The BSE Sensex climbed 480.57 points, or 0.74 per cent, to settle at 65,721.25. Nifty rallied 135.35 points, or 0.70 per cent, to 19,517.

Select results-bound stocks such as Mahindra & Mahindra (M&M), Godrej Consumer Products and Bank of Baroda (BoB) are likely to remain under the spotlight today. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these three stocks ahead of Monday's trading session:

Mahindra & Mahindra | Buy | Target Price: Rs 1,559-1,601 | Stop Loss: Rs 1,415
M&M has been making lower lows on the weekly chart for the last four weeks. Currently, the stock has tested the demand zone of Rs 1,420 to Rs 1,415 levels and closed well above it. On the daily chart, the RSI reading has made a higher-high. Combining the above parameters, a bounce from the current level cannot be ruled out. Hence, one can hold the stock at current level with a stop loss of Rs 1,415 for a target of Rs 1,559–1,601 levels in the couple of weeks.

Bank of Baroda | Sell | Target Price: Rs 160-145 | Stop Loss: Rs 205
Bank of Baroda maintains a lower top -bottom formation on the daily chart, a sign of weakness. The stock has closed below its 50-day SMA with high volumes. Even the momentum indicator, viz., MACD is showing signs of weakness. Combining all the above parameters, there is a possibility that downside momentum may continue. Hence, one can sell the stock at current levels with a stop loss of Rs 205 for the target of Rs 160–145 levels in the next couple of months.
 
Godrej Consumer Products | Sell | Target Price: Rs 935-895 | Stop Loss: Rs 1055
Godrej Consumer maintains a lower top -bottom formation on the daily chart, a sign of weakness. The stock trades well below its 10-, 20-, and 50-day SMAs. Even the momentum indicator, viz MACD, is showing signs of weakness. Hence, combining all the above parameters, there is a possibility that downside momentum may continue. Hence, one can sell the stock at current levels with a stop loss of Rs 1,055 for a target of Rs 935–895 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.)

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