Bajaj Housing Finance, LTIMindTree, Biocon: How to trade these 3 buzzing stocks

Indian benchmark indices managed to post mild gains on Tuesday, extending the bull run, despite negative global cues. The rising tensions between Donald Trump and US Fed chair Jerome Powell is denting the sentiments on a global course. BSE Sensex rose 187.09 points, or 0.24 per cent to settle at 79,595.59, while NSE's Nifty50 added 41.70 points, or 0.17 per cent to end at 24,167.25 for the day.

 

Select buzzing stocks including Bajaj Housing Finance, LTIMindTree and Biocon are likely to remain under the spotlight of traders for the session today. Here is what Rajesh Palviya, SVP - Technical and Derivatives Research at Axis Securities has to about these stocks ahead of Wednesday's trading session:

 

Bajaj Housing Finance | Buy | Target Price: Rs 145-150 | Support: Rs 124-120

On the daily chart, Bajaj Housing has formed a higher top and a higher bottom, which confirms a short-term trend reversal. It has also confirmed a rounding bottom formation at Rs 128 levels on a closing basis. This breakout is accompanied by huge volume, indicating increased participation. Currently, the stock is well paced above its 20,50, and 100 SMA, which reconfirms a bullish trend. The daily and weekly strength indicator, RSI, is in positive territory, quoting above its reference line, indicating sustained strength. Traders and investors are advised to buy and accumulate the stock, which has an expected upside of Rs 145-150. The short-term support zone is around Rs 124-120.

 

Biocon | Buy Range: Rs 355-360 | Target Price: Rs 385-405 | Support: Rs 319-305

Biocon has been consolidating between Rs 360 and Rs 300 levels for the past couple of months, representing short-term consolidation. Hence, any decisive breakout above Rs 355-360 levels may confirm a trend reversal. Currently, the stock is sustaining below its crucial averages of 20,50,100 and 200 SMAS, indicating a lack of strength on either side. Hence, traders are advised to adopt a cautious approach and buy only above Rs 355-360 with an expected upside of 385 and 405. The crucial support zone is placed at around 319-305 levels.

 

LTIMindTree | Hold | Target Price: Rs 4,600-4,750 | Support: Rs 4,040-3,790

LTIMindTree is in a downtrend, forming a series of lower tops and lower bottoms. However, with the current close, the stock has managed to close above its three-month down sloping trend line resistance at Rs 4,200 levels. This shows early signs of bottoming out. The daily strength indicator RSI is positive, indicating rising strength on the short-term charts. Traders are advised to hold their existing positions for a relief rally towards Rs 4,600-4750 levels with a crucial support zone of Rs 4,040-3790.