IDBI Bank, Hindustan Zinc, Ashok Leyland: How should you trade these buzzing stocks?

Domestic stock indices fell on Friday, as investors took some money off the table after the recent rally. Selling pressure was observed in index heavyweights, with the BSE Sensex falling 505 points, or 0.77 per cent to end the day at 65,280.45. The NSE's Nifty plunged 165.50 points, or 0.85 per cent, to end the session at 19,331.80.
Select stocks such as IDBI Bank, Hindustan Zinc and Ashok Leyland could be in the spotlight on Monday. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

IDBI Bank | Buy | Target Price: Rs 63-66 | Stop loss: Rs 54
IDBI Bank has given a breakout from the lateral consolidation zone on the weekly chart,. Further, the stock is seeing a pick-up in volume activity on the daily chart. The stock is outperforming the benchmark indices and the momentum indicator RSI is positively poised. Combining all the above parameters, it is evident that momentum on the upside is likely to continue. Hence, one can buy the stock at current levels with a stop loss of Rs 54 for a target of Rs 63–66 levels in the couple of weeks.

Ashok Leyland | Hold | Target Price: Rs 169-172 | Stop loss: Rs 160
Ashok Leyland is witnessing a pullback from its prior uptrend and is currently at the crucial support level of Rs 162.38 on the daily chart. The stock is clearly outperforming the benchmark indices, which is a positive sign. The momentum indicator MACD has given a negative crossover, which indicates that the correction may deepen further. Hence, one can hold the stock with a stop loss of Rs 160. If the stock manages to hold this, it may test the target of Rs 169-172 levels in the next couple of months.

Hindustan Zinc | Buy | Target Price: Rs 370-400 | Stop loss: Rs 325
Hindustan Zinc has seen a rounding base pattern breakout on July 6 with higher volumes on the daily chart. Even the momentum indicators RSI and MACD are positively poised. The stock has recently started outperforming the benchmark indices. Combining all the above parameters, it is evident that the stock is likely to continue its upside momentum. Hence, one can buy the stock at current levels with a stop loss of  Rs 325 for a target of Rs 370–400 levels in the next couple of weeks.

(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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