Tata Motors, DLF, Asian Paints: What should be your trading strategy for these stocks?

Domestic stock indices settled higher on Wednesday in a volatile session.  The BSE Sensex jumped 178.87 points, or 0.29 per cent, to settle at 61,940.20. The NSE Nifty gained 49.15 points, or 0.27 per cent, to close at 18,315.10.
Select results-bound stocks such as Tata Motors, DFL and Asian Paints are likely to remain in limelight today. Here is what Laxmikant Shukla, Technical Research Analyst, YES Securities has to say on these stocks ahead of Thursday's trading session:

Tata Motors | Buy at Rs 495-500 | Target Price: Rs 550 | Stop Loss: Rs 475
Tata Motors witnessed strong gains in the last two sessions. The stock bounced back from its 20-day simple moving average on the daily chart. The stock recently gave a congestion breakout and engulfed its previous day’s bearish candle on the daily time frame, adding to the bullish sentiment. The primary indicators are align with the trend, suggesting a continuation of the momentum. Hence, one can buy the stock with a stop loss of Rs 475 for a target of Rs 550.

DLF | Buy at Rs 425-430 | Target Price: Rs 490 | Stop Loss: Rs 400
Real estate sector has been performing well within the sectoral indices and DLF has been an outperformer. Recently, it witnessed a fresh breakout from its horizontal resistance line on the daily chart. It is likely to maintain the prevailing momentum. The Ichimoku indicator is suggesting a bullish move, as the price is trading above the tenkan-sen and kijun- sen lines on the daily timeframe. These factors indicate that a bullish move in DLF is possible for target up to Rs 490. One can initiate a buy trade in the range of Rs 425-430 with a stop loss of Rs 400 on a closing basis.

Asian Paints | Rangebound | Resistance: Rs 3,075 | Support: Rs 2,975
After giving breakout from its double bottom pattern, Asian Paints, has shown decent run up toward its 200-DMA. It has started consolidating near the same moving average. The momentum indicator RSI on the daily time frame is approaching above its overbought zone, indicating some profit booking at current levels, as stock has had a continuous run for the last 8-10 days. However, from a medium-term perspective, the stock is a buy in the range of Rs 2,925-2,950 where its upcoming support is seen. A fresh buying momentum can be triggered only above Rs 3,075 from where the gains can extend up to Rs 3,240.

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