Tata Power, Bharat Forge, Max Financial, KPR Mills: How should you trade these buzzing stocks

Domestic stock indices settled lower on Friday amid renewed fears of interest rate hikes globally and its likely impact on the global economic health. The BSE Sensex dropped 202.36 points, or 0.31 per cent, to settle at 64,948.66. Nifty tanked 55.10 points, or 0.28 per cent, to end at 19,310.15.

Select stocks such as Tata Power Company, Bharat Forge, Max Financial Services and KPR Mills are likely to be the spotlight today. Here is what Ashika Stock Broking and SMC Global have to say on these stocks ahead of Monday's trading session:

Tata Power Co | Buy | Target Price: Rs 255-259 | Stop Loss: Rs 215
Tata Power witnessed a steady recovery from lower levels. It traded in a rising channel and formed a higher bottom pattern. Few weeks ago, the stock had managed to surpass its long term downward sloping channel. Since then, it is trading in a range bound manner, as prices fluctuated in the Rs 220-240 range. The stock is well placed above its 200-days exponential moving average on daily and weekly intervals. One can expect upside momentum to carry on in the coming weeks, as positive divergences on secondary oscillators suggest the next upswing. One can buy the stock in the range of Rs 228-230 levels for the upside target of Rs 255-259 levels with a stop loss below Rs 215 levels.

Recommended by: SMC Global

Max Financial Services | Buy | Target Price: Rs 1,000-1,020 | Stop Loss: Rs 780
Max Financial formed a rounding bottom pattern on the weekly chart. It has risen sharply and saw a fresh momentum above its 200 days exponential moving average. The upside momentum has been observed with rising volumes. Technically, the  stock has also given a fresh breakout above the falling trend line of downward sloping channel and is on verge of fresh breakout above its key resistance level of Rs 900 after a consolidation phase of nearly six weeks. Therefore, one can buy the stock in range of Rs 865-870 levels for the upside target of 1,000-1,020 levels with stop loss below Rs 780 levels.

Recommended by: SMC Global

Bharat Forge | Buy | Target Price: Rs 1,090 | Upside Potential: 13%
Bharat Forge has generated a breakout above its last nine-month range of Rs 900-750, signalling continuation of the up move. The stock is witnessing elevated buying demand from the 20-day WEMA, signalling strength and a positive price structure. On the oscillator front, MACD is in up trend and bias is positive. Hence, it can be expected that the stock will head initially towards Rs 1,090 level in the coming few weeks.

Recommended by: Ashika Stock Broking

KPR Mills | Buy | Target Price: Rs 775 | Upside Potential: 14%
The stock is seen resuming its primary uptrend as buying is seen after a higher base around the support area of Rs 600 -- being the confluence of the 23.6 per cent retracement of the entire rally since April 20,  thus offers fresh entry Opportunity.
The process of a bullish ‘rising channel’ formation might be in place followed by large scale volume participation, indicating strength in the rally. The stock is trading decisively above the shorter-term average of 50-EMA that validates positive bias. One can expect the stock to head higher hereon towards the level of Rs 775 in coming weeks.
Recommended by: Ashika Stock Broking


(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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