HDFC Bank, UTI AMC, Exide Industries: Trading strategies for these buzzing stocks

Domestic benchmark indices settled marginally lower on Thursday after a choppy trading session. Muted earnings from the IT major like Tata Consultancy Services (TCS) weighed on other results-bound IT heavyweights and dragged the indices lower. The BSE Sensex shed 64.66 points, or 0.10 per cent, to end the session at 66,408.39. The NSE Nifty fell 17.35 points, or 0.09 per cent, to end the day at 19,794.

Some buzzing and results-bound stocks of Dalal Street namely HDFC Bank, UTI Asset Management Company and Exide Industries are likely to remain under the spotlight today. Here is what various analysts from different brokerage firms to say on these stocks ahead of Friday's trading session:

HDFC Bank | Buy Range: Rs 1,510-1,547 | Target Price: Rs 1,700-1,780
On the daily chart, HDFC Bank has bounced back from the support of Rs 1,490 level and is currently trading at Rs 1,547, forming a three rising soldier's pattern. The stock has also crossed the initial resistance of Rs 1,545, which is also close to its 20-day EMA level. On the weekly chart, the stock has formed a strong bullish candle after a successful closing of Doji-candle a week prior, which is a sign of reversal. In addition, an momentum indicator RSI has bounced from the lower levels 30 and is currently trading near 46 level, indicating strength. One can have position on the stock for the medium to long-term perspective.

Analyst: Sumeet Bagadia, Choice Broking

Exide Industries | Buy | Target Price: Rs 295 | Stop Loss: Rs 251
Post the decline from highs of Rs 280 level, Exide Industries has been consolidating in a range of Rs 253-263 in last few sessions. It has started breaking out of the range, on the back of higher-than-average traded volumes. The 8-day EMA has started expanding over the 50-day EMA, suggesting further strength to prevail. All the major selling that the stock witnessed in the last six months has ended near its 50-day EMA (currently placed at Rs 258 level). Despite the sell-off in the previous series, the October series had started with a cumulative future open interest of 15.9 million shares as against last three series average of 19.3 million shares, indicating a lack of aggressive selling at lower levels. It currently stands at 16.6 million shares with most accumulation on the long side as evident from a rise in cost of carry.

Analyst: Neeraj Agarwal, JM Financial

UTI Asset Management Company | Buy | Target Price: Rs 1,200 | Stop Loss: Rs 700
The consolidation phase of UTI AMC may continue for some time in the range of Rs 770–820 levels. It has made a higher bottom formation on the daily chart, with support as Rs 730-level, which is its 200-DMA. The resistance has come in the range of Rs 840-880 levels. However, the risk-to-reward ratio is favorable on the long side. The stock looks attractive, with the RSI indicator showing a trend reversal, signaling a buy. The analyst has suggested traders to buy the stock with a target price of Rs 1,200 and a stop loss of Rs 700

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Analyst: Vaishali Parekh, Prabhudas Lilladher

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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