ITC, State Bank of India, IndiGo: How should you trade these stocks ahead of Q4 results?

Domestic stock indices on Wednesday extended fall to the second straight session amid debt ceiling negotiations in the US. The BSE Sensex dropped 371.63 points, or 0.60 per cent, to close at 61,560.64. The NSE Nifty dropped 104.75 points, or 0.57 per cent, to settle at 18,181.75.

Select stocks such as ITC and InterGlobe Aviation (IndiGo) are likely to be in limelight today ahead of March quarter earnings. Here is what Laxmikant Shukla, Technical Research Analyst, YES Securities has to say on these stocks ahead of Thursday's trading session:

InterGlobe Aviation | Buy at 2,260-2,280 | Target Price: Rs 2,810 | Stop Loss: Rs 2,000
InterGlobe Aviation has seen breaking out of a falling trendline on the weekly timeframe with decent volumes. It formed a bullish candle and formed higher high-lows. On the indicator front, the stock is trading above its 20-day, 50, 100 and 200-day simple moving averages, which indicate bullishness. Bullish crossover in terms of RSI and MACD also suggest the same. e in InterGlobe can see further upmove towards the target of up to Rs 2,810 level. One can initiate a ‘buy’ in the range of Rs 2,260-2,280 with a stop-loss of Rs 2,000 on a closing basis.
 
ITC | Buy above 435 | Target Price: Rs 485 | Stop Loss: Rs 410

ITC is in a classical uptrend. It made an all-time high closing on the daily chart. It has witnessed the breakout of a four-month consolidation phase with strong volumes. The structure of the counter looks lucrative, as a cluster of moving averages formed a base at around Rs 410 level. The momentum indicator RSI is also positively poised, whereas the MACD is supporting the current strength on the weekly chart. On the higher side, Rs 435 acts as susceptible level; above which, one can expect a move towards Rs 485 level. On the lower side, the Rs 410 level would serve as an important support in any correction.

State Bank of India | Buy | Target Price: Rs 650 | Stop Loss: Rs 560
State Bank of India, after giving breakout from its double bottom pattern, has shown decent run up toward Rs 585-590 and started consolidating near its upper band. The daily, weekly and monthly strength indicator RSI is in a positive terrain, which indicates sustained strength. Once the stock surpasses the levels of Rs 590, it would look well versed to continue its upward journey. Hence, we recommend buying SBI shares with a stop loss of Rs 560 and a target of Rs 650.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)