Ambuja Cements, IndiGo, AB Capital: How should you trade these buzzing stocks

Domestic benchmark indices settled slightly lower on Tuesday after traders took some profits off the table. The BSE Sensex shed 68.36 points, or 0.10 per cent, to settle at 66,459.31. The NSE Nifty dropped 20.25 points, or 0.10 per cent, to end the day at 19,733.55.
 

Select results-bound stocks such as Aditya Birla Capital, Ambuja Cement and InterGlobe Aviation (IndiGo) are likely to remain under the spotlight. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:

Aditya Birla Capital | Buy | Target Price: Rs 200-224 | Stop Loss: Rs 180
AB Capital is in a classical uptrend, as it has witnessed a breakout of a triangle formation on the longer timeframe. It retested its previous breakout levels at around Rs 157 and started a new leg of rally towards the Rs 200 level. The structure of the counter looks lucrative for traders. On the upside, the Rs 200 level is a psychological resistance level, above which we can expect a rally towards Rs 224 level. On the downside, the level of Rs 180 is an important support during any correction.

Ambuja Cements | Buy | Target Price: Rs 470-490 | Stop Loss: Rs 440
Ambuja Cements is bottoming out at around Rs 320. In the last few trading sessions, the stock has made an astute recovery from the Rs 410–415 levels, with strong volumes. The overall structure looks impressive, as the stock trades above its key moving averages. On the upside, the level of Rs 470 is an immediate susceptible area. On a breach of this level, one can expect a run-up towards Rs 490 level in the near term. The level of Rs 440 may act as immediate demand level.

InterGlobe Aviation | Buy | Target Price: Rs 2,700-3,000 | Stop Loss: Rs 2,500-2,300
IndiGo is currently experiencing a classical uptrend, marked by a breakout of a triangle formation on the longer timeframe. It recently retraced to test its previous breakout levels at approximately Rs 2,500 level. However, its 10-day moving average (DMA) and 20-DMA are acting as resistance. If the counter manages to break above at Rs 2,700, there is a potential for a new leg of the rally towards the Rs 3,000 level. On the downside, the level of Rs 2,500 serves as a robust support level. The next support during any correction comes in at Rs 2,300 level.


(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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