Varun Beverages, Eternal, Indus Towers: How to trade these 3 buzzing stocks

Indian benchmark indices settled mostly flat amid cautious stance over border tensions with Pakistan. However, positive FIIs inflows and supportive global cues improved the sentiments at Dalal Street. BSE Sensex added only 70.01 points, or 0.09 per cent to settle at 80,288.38, while NSE's Nifty50 gained merely 7.45 points, or 0.03 per cent to end at 24,335.95 for the day.

 

Select buzzing defence stocks including Varun Beverages, Indus Towers and Eternal are likely to remain under the spotlight of traders for the session today. Here is what Rajesh Palviya, SVP - Technical and Derivatives Research at Axis Securities has to about these stocks ahead of Wednesday's trading session:

 

Varun Beverages | Wait & Watch | Resistance: Rs 570 | Support: Rs 513

Varun Beverages has been consolidating between the Rs 510 and Rs 570 levels over the past couple of months, indicating a short-term sideways trend. Therefore, a breakout in either direction could signal the stock's future direction. This consolidation is supported by the 50-day simple moving average (SMA) at Rs 513, which acts as a crucial support zone. However, if the stock closes below this level, it may lead to further declines towards the Rs 480-440 range. Traders are advised to wait for a Rs 570 breakout to create fresh longs. In this scenario, the stock may extend its rally towards the Rs 620-660 level.

 

Indus Towers | Buy on dips | Target Price: Rs 460-500 | Stop Loss: Rs 385-375

Indus Towers has decisively broken out of the Rs 390-310 consolidation range, closing above Rs 390 on the weekly charts. The stock is sustaining higher tops and bottoms, indicating a bullish trend. In addition, the stock is well placed above its 20, 50, and 200-day SMAs, and these averages are also inching up along with rising prices, which confirms bullish sentiment. The weekly and monthly strength indicator, RSI, is in positive territory, signaling rising strength. Traders and investors are advised to adopt a buy-on-dips strategy, with the expected upside of Rs 460-500. The crucial support zone is placed around the Rs 385-375 levels.

 

Eternal | Buy Range: Rs 245-250 | Target Price: Rs 300-320 | Stop Loss: Rs 225

Eternal has been consolidating within the range of Rs 245 to Rs 198 since January 25, indicating a sideways trend. However, it is positioned above both the 20-day and 50-day simple moving averages (SMAs), suggesting a positive short-term bias. Traders are advised to consider entering new long positions only on a closing breakout above the Rs 245-250 levels. In this scenario, the stock could potentially extend its rally towards the Rs 300-320 levels. The short-term support zone is located around the Rs 225-210 levels.