JSW Steel, Bandhan Bank, Tata Elxsi: How should you trade these buzzing stocks

Domestic benchmark indices extended their gains on Thursday amid positive global cues and buying in IT counters. However, steep profit booking at the higher levels by traders trimmed their gains. BSE's barometer Sensex gained 164.99 points, or 0.25 per cent, to end at 65,558.89, while NSE's Nifty50 gained 29.45 points, or 0.15 per cent, to close at 19,413.75.

Select stocks such as JSW Steel, Bandhan Bank and Tata Elxsi are likely to remain under the spotlight on Dalal Street for the session today ahead of the result season. Here is what Riches Vanara, Technical and Derivatives Analyst at StoxBox has to say on these stocks ahead of Friday's trading session:

JSW Steel | Buy | Target Price: Rs 830-855 | Stop Loss: Rs 785
JSW Steel broke out of ascending triangle pattern on weekly charts and trading well above the pattern with positive bias. The momentum indicator MACD is trading well above 0 line and trending strong. Stock is showing good relative strength against the Nifty50 index. It's a buy call with target of Rs 830 and Rs 855 with support placed around Rs 785 level.

Bandhan Bank | Sell | Target Price: Rs 207-203 | Stop Loss: 220
Bandhan Bank is trading with negative price action and has seen selling with high volumes. It has formed a double top pattern on weekly charts. Hence, we recommend selling the stock on break below Rs 212 levels. It will confirm the pattern and can see stock running towards levels of Rs 207 and Rs 203. The stock will face strong resistance at 220.

Tata Elxsi | Buy | Target Price: 7,725-7880 | Stop Loss: 7,520-7,480
Tata Elxsi has gained around 33 per cent in just one month. The stock was taking a breather before the further up move and now it looks like that stock is ready to roar again. The buying interest seen with above average volume and the momentum indicator MACD also turned bullish. Hence, we recommended buying with a target price of Rs 7,725 and Rs 7,880. The support will come around Rs 7520 and Rs 7,480 levels.


(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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