'Buy' Federal Bank, Bajaj Auto & Tata Steel shares: LKP Securities' analyst

Indian equity benchmarks ended lower on Tuesday amid thin year-end participation and continued foreign fund selling. The 30-share BSE Sensex pack shed 20 points or 0.02 per cent to close at 84,675; while the broader NSE Nifty index inched down 3 points or 0.01 per cent to settle at 25,939. The broader market also remained under pressure, with the NSE MidCap100 slipping 0.15 per cent and the SmallCap100 easing 0.28 per cent.

For Wednesday's session, Vatsal Bhuva, Technical Analyst at LKP Securities, has recommended buy positions in Federal Bank Ltd, Bajaj Auto Ltd and Tata Steel Ltd for short-term trade setups.

Federal Bank | Buy @ Rs 267 | Stop Loss: Rs 258 | Target: Rs 280

Federal Bank continues to maintain an upward structure supported by a higher high–higher low formation. A rebound from the 20-day SMA indicates active buying at lower levels, while a hidden bullish divergence on momentum indicators signals scope for further upside.

Bajaj Auto | Buy @ Rs 9,282 | Stop Loss: Rs 8,910 | Target: Rs 9,800

Bajaj Auto has closed above its previous swing high, reflecting a breakout with strengthening bullish sentiment. Sustained trade above the 50-day SMA suggests trend support, and a bullish RSI crossover indicates positive momentum for near-term gains.

Tata Steel | Buy @ Rs 175 | Stop Loss: Rs 168 | Target: Rs 188

Tata Steel has given a consolidation breakout on the daily timeframe. The stock is trading above the 20-day and 50-day SMAs, showing improving trend strength, while a bullish RSI crossover supports the possibility of further upside.