TCS, Reliance, Asian Paints: Trading strategies for these buzzing blue-chip stocks

Domestic benchmark indices settled with big gains on Wednesday, thanks to positive global economic data and ease in geopolitical concerns. The hopes of rate cuts by the central banks globally boosted the morale of market. The BSE Sensex climbed 742.06 points, or 1.14 per cent, to end at 65,675.93. The NSE Nifty advanced 231.90 points, or 1.19 per cent, to end the day at 19,675.45.

A few stocks of Dalal Street namely Reliance Industries Ltd (RIL), Tata Consultancy Services Ltd and Asian Paints Ltd are likely to remain in focus today. Here is what Rupak De, Senior Technical analyst at LKP Securities has to say on these stocks ahead of Thursday's trading session:

Tata Consultancy Services | Buy | Target Price: Rs 3,550 | Stop Loss: Rs 3,330
TCS has experienced a breakout from consolidation after forming a base on the daily chart. The sentiment appears positive as the stock has risen above its critical short-term moving average. The RSI showed a bullish crossover. On the downside, a support is established at Rs 3,330. On the upside, there is potential for the stock to reach levels around Rs 3,550.

Reliance Industries | Buy | Target Price: Rs 2,410 | Stop Loss: Rs 2,320
Reliance Industries has experienced a breakout from a falling channel on the daily chart, indicating an increase in optimism. Additionally, the stock has surpassed a critical moving average. The momentum indicator showed a bullish crossover, following a breakout from consolidation. In the short term, there is a potential upward movement towards Rs 2,410, with a support placed at Rs 2,320.

Asian Paints | Buy | Target Price: Rs 3,330 | Stop Loss: Rs 3,048
Asian Paints is presently trading with a Cup & Handle pattern breakout on the daily chart. This breakout is accompanied by increasing trading volume, indicating positive momentum on the counter. The RSI (Relative Strength Index) indicator suggests a buying opportunity at current levels. Additionally, the stock has been holding above the 21-day Simple Moving Average (DMA) on the daily chart for the last four days, indicating strength. As per the current pattern, there is an expectation of reaching levels around Rs 3,330 on the upside. To manage risk, it's advisable to maintain a stop-loss at Rs 3,048 on a closing basis. For potential traders, a good entry point is at Rs 3,110, and consider buying on dips at Rs 3,090.

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.

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