Tata Steel, Dr Reddy's Labs, Axis Bank: Trading strategies for these buzzing stocks

Indian headline indices settled marginally lower on Tuesday, following a choppy trading session. Traders awaited the outcome of the RBI's monetary policy due later this week. The 30-share pack BSE Sensex declined 110.64 points, or 0.15 per cent to settle at 73,903.91. The NSE Nifty index shed 8.70 points, or 0.04 per cent, to end at 22,453.30.

A few stocks namely Tata Steel Ltd, Dr Reddy's Laboratories Ltd and Axis Bank Ltd will be on investor radar today. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:

Tata Steel | Resistance: 170-200 | Support: Rs 150-138
On the weekly timeframe, Tata Steel has given a breakout to a Cup & Handle formation. On the daily chart, it has experienced a V-shaped recovery from 50-DMA with high volumes, supporting the trend. Additionally, Nifty Metals are also shining, as the index is trading at an all-time high trajectory. Talking about the technical levels, the first resistance zone for the stock is at Rs 170, with a significant number of call writers positioned above that level. The next resistance zone will be at Rs 200. On the downside, the Rs 150 level will be the first support zone where the 20 DMA is placed. If the stock slips below Rs 150, the next major support will be at Rs 138.

Dr Reddy's Laboratories | Resistance: 6,500-6,700 | Support: Rs 6,000
Dr Reddy's has broken out of a Cup & Handle formation on the daily chart, accompanied by robust trading volumes. After successfully retesting the breakout level near Rs 6,000, the stock has initiated a fresh upward movement targeting Rs 6,500. Trading above key moving averages is adding to its attractiveness. Supporting the bullish sentiment, the MACD indicator shows strength. The momentum indicators are also favorably positioned. Looking ahead, overcoming the immediate resistance at Rs 6,500 could pave the way for further upside towards Rs 6,700 and beyond. Conversely, the Rs 6,000 level is expected to act as a solid support level in case of any corrective moves.

Axis Bank | Resistance: 1,080-1,1160 | Support: Rs 1,020
After a healthy correction, Axis Bank has taken support at its 200-DMA. Recently, the stock have seen short coverings. On the upside, the first resistance zone is at Rs 1,080, where a bundle of moving averages is placed. If the stock sustains over that level, one can see coverings towards the Rs 1,160 level. On the downside, the Rs 1,020 level will play an important support role. Below that, one can expect a dip towards the Rs 950 level.
 

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