Adani Enterprises, Vedanta, Bajaj Auto: What should be your strategy amid Q3 results

Domestic stock indices settled sharply lower on Wednesday, thanks to negative global cues and reports of Hindenburg going short on Adani group stocks. The BSE Sensex plunged 773.69 points, or 1.27 per cent, to settle at 60,205.06. Nifty50 tumbled 226.35 points, or 1.25 per cent, to 17,891.95.

Select stocks such as Adani Enterprises, Vedanta and Bajaj Auto were on traders' radar. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities advised traders to do in Friday's trading session:

Adani Enterprises| Sell | Target Price: Rs 2,800 | Stop Loss: Rs 3,900 |

After sideways consolidation, Adani Enterprises stock has made distribution at top and gave breakdown of rising trendline pattern, which indicate selling pressure in the scrip. From the last three weeks, prices have been falling continuously with lower highs and lower lows, below 20-day SMA. A momentum indicator slipped below the 50 mark and made a  bearish crossover. At the same time, the MACD histogram hovers in the negative territory with a bearish crossover, confirming short positions. One can initiate short positions in Adani Enterprises (February) futures at around Rs 3,430-3,450 or a rise in the price till Rs 3,525 can be used as a selling opportunity for the downside target of Rs 2,800. However, the bearish view will be negated, if stock closes above the Rs 3,900 level.

Vedanta | Buy | Target Price: Rs 380 | Stop Loss: Rs 295 |

Inverted Head and Shoulder breakout on daily chart and ascending triangle breakout on the weekly scale is reflecting a bullish move on the scrip. The surge on the stock has been backed by decent volumes, supporting the optimistic view. The stock is consistently trading above the bullish crossover of 20- and 50- day SMA, which is broadly positive. At present, it has taken a breather while making bearish counterattack candlestick pattern on the daily chart.

It is approaching towards the breakout zone, which can provide opportunity for initiating long position in the scrip. One may look to buy Vedanta around Rs 320-325 levels and wait for the upside target of Rs 370 -380 zone with stop-loss of Rs 295 levels on closing basis.

Bajaj Auto | Buy | Target Price: Rs 4,130 | Stop Loss: Rs 3,460 |

After a medium-term correction, the stock took support near Rs 3,520. Post correction, the stock is consistently taking support in the Rs 3,520-3,460 price range. On the daily chart, it has formed Double Bottom formation, which indicates a strong possibility of quick pullback rally from the current levels. The stock also witnessed falling trendline breakout on the daily chart above its 20-DMA. Looking at the overall pattern, it offers buying opportunities for the positional target of Rs 4,130 with stop loss of Rs 3,460 on a closing basis.

 

(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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