Tata Motors, RIL, Bajaj Finance: What should be your trading strategy for these 3 stocks?

Domestic stock markets gained on Monday, extending gains to the second straight session on firm domestic cues. Buying in index heavyweight counters pushed the indices higher, with the BSE Sensex jumping 317.81 points, or 0.51 per cent, to 62,345.71. The NSE barometer  Nifty gained 84.05 points, or 0.46 per cent, to 18,398.85.

Select blue chip counters such as Reliance Industries, Tata Motors and Bajaj Finance could be in limelight today. Here is what Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher has to say on these stocks ahead of Tuesday's trading session:

Tata Motors | Hold | Target Price: Rs 565-570 | Stop Loss: Rs 512
Tata Motors has given a splendid run in the last two weeks. The stock has retested the previous peak zone of Rs 536, where it faced some resistance. One can hold the stock keeping Rs 512 as the near-term support level and expect for a breakout above the Rs 536 and for an initial target of Rs 565-570 levels. 

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Reliance Industries | Buy above Rs 2,510 | Target Price: Rs 2,570-2,600 | Stop Loss: Rs 2,440-2,450
Reliance Industries has slowly picked up momentum. The stock is currently finding resistance near the Rs 2,500-2,510 zone and is maintaining near-term support at Rs 2,440-2,450 levels. A decisive breach above Rs 2,510 can carry the stock to a new target of Rs 2,570-2,600 levels in coming days.  

Bajaj Finance | Buy | Target Price: Rs 6,900-6,950 | Stop Loss: Rs 6,590
Bajaj Finance has gained strength after it breached its 50-EMA level of Rs 5,990 and moved past the important zone of Rs 6,590 (200-DMA level) . This indicated strong trend, with indicators positioned at decent levels. Keeping the support near Rs 6,590 level, one can ‘Hold’ or ‘Buy’ the stock for initial targets of Rs 6,900-6,950 and expect further gains.  

(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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