Tata Steel, Bajaj Finance, Varun Beverages: How should you trade these buzzing stocks?

Domestic stock indices extended their gains for the third straight session on Wednesday. The BSE Sensex rose 85 points, or 0.14 per cent, to close at 63,229. The NSE Nifty gained 40 points, or 0.21 per cent, to settle at 18,756.

Select stocks such as Tata Steel, Varun Beverages and Bajaj Finance are likely to be in limelight today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

Tata Steel | Buy | Target Price: Rs 124-131 | Stop Loss: 104
Tata Steel, after showing correction around 17 per cent from a high of Rs 124 hit on January 19, bottomed out near the 50 per cent Fibonacci retracement. It found support at Rs 104-106. A further the upside movement is likely, with the RSI trading above the reference line and a bullish crossover visible on MACD. One can accumulate the stock for an initial upside target of Rs 124 . A further strength can push the stock towards the Rs 131 level. Keep a stop loss at Rs 104 on a closing basis.

Varun Beverages | Range-bound | Resistance: Rs 1,700 | Support: Rs 1,530
Varun Beverages remained sideways in the last few days and failed to give any directional move. On the daily chart, the stock is facing a stiff resistance near Rs 1,690-1,700 levels due to the line of parity. The daily RSI is hovering near the 50-mark, suggesting ambiguity. However, on the downside, the stock has formed base at around Rs 1,550-1,530 levels. Hence, a decisive move on either side is required for any unidirectional move.

Bajaj Finance | Buy | Target Price: Rs 7,840 | Stop Loss: 6,730
Bajaj Finance is trading in an upwards sloping parallel channel pattern. It made higher high-low on the weekly timeframe. It is also trading above 20-, 50-, 100- and 200-day SMAs,  which can be used as a confluence towards the bullish view. On the indicator front, the ‘Ichimoku Cloud’ is also suggesting a bullish move, as the stock is trading above the conversion and base line. Observation of the above factors indicates that a bullish move on the counter is possible for targets up to Rs 7,840 levels. One can initiate a buy in Rs 7,090-7,050 region, with a stop-loss of Rs 6,730 on a daily closing basis.

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