JSW Steel, HDFC Bank, Maruti Suzuki: How should you trade these buzzing stocks

Domestic stock indices on Tuesday extended their gains for the second straight session. The BSE Sensex added 79.22 points, or 0.12 per cent, to settle at 65,075.82. The NSE Nifty gained 36.60 points, or 0.19 per cent, to close at 19,342.65.  Select stocks namely Maruti Suzuki India, HDFC Bank and JSW Steel are likely to be in the spotlight today. Here is what Pravesh Gour, Senior Technical Analyst, Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:

Maruti Suzuki | Buy | Target Price: Rs 9,850 | Stop Loss: Rs 9,450
Maruti Suzuki is forming a small Inverse Head and Shoulders as well as a triangle formation on the daily chart. But both pattern formations are waiting for a breakout above the Rs 9,700 level. The structure of the counter looks lucrative for long-term investors, as the scrip is trading above all its important moving averages. The momentum indicator RSI is positively poised while the MACD is supporting the current strength. On the upside, Rs 9,700 is an important psychological level; above this, one can expect a move towards Rs 9,850. On the downside, the Rs 9,450 level is a strong demand zone during any correction.

HDFC Bank | Avoid | Resistance: Rs 1,620 | Support: Rs 1,530
HDFC Bank witnessed a breakdown of Double Top formation. It saw profit booking from the higher levels of Rs 1,760–1,750. The stock has retested its last breakout level of Rs 1,530 and has started a new rally towards the Rs 1,620 level. The structure of the counter has become a little distorted, as it is trading below its important moving averages. On the upside, the Rs 1,620 level (200-DMA) is an immediate hurdle; above this, one can expect a move towards Rs 1,650. On the downside, the Rs 1,530 level is a strong demand zone during any correction.

JSW Steel | Avoid | Resistance: Rs 790-800 | Support: Rs 770
JSW Steel has witnessed a breakdown of a Head and Shoulders formation pattern, with huge volumes. It is bouncing  back from the lower levels of Rs 770. However, a cluster of moving averages (9-, 20- and 50 DMA) will provide supply levels at regular intervals. The momentum indicator RSI is negatively poised while MACD is supporting the downside. On the upside, Rs 790–800 is the immediate hurdle range; above this, one can expect a move towards Rs. 810. On the downside, the Rs 770 level is a strong demand zone during any correction.


(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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