Indian Bank, MCX, Colgate: Trading strategy for buzzing D-st stocks

Domestic equity indices settled flat on Monday after a volatile trading session. Global factors weighed on the market sentiment as traders awaited a clearer picture on inflation and interest rate globally. The BSE Sensex added 14.54 points, or 0.02 per cent, to settle at 66,023.69. NSE's Nifty settled flat at 19,674.55.
Some buzzing and most-active counters namely Colgate-Palmolive (COLPAL), Multi-Commodity Exchange (MCX) and Indian Bank are likely to remain under the spotlight today. Here is what Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities has to say on these stocks ahead of Tuesday's trading session:

Colgate-Palmolive | Buy | Target Price: Rs 2,100-2,140 | Stop Loss: Rs 1,975
Colgate-Palmolive (COLPAL) is poised for a potential breakout after a prolonged consolidation phase. The stock has found support at its 20-day moving average (20 DMA), which is situated at Rs 1,975. It will act as a cushion. A significant breakout level is identified at Rs 2,025. If the stock manages to breach this level, it may pave the way for new highs in the range of Rs 2,100 to Rs 2,140 levels.

Multi-Commodity Exchange (MCX) | Buy | Target Price: Rs 2,000-2,040 | Stop Loss: Rs 1,900
MCX has been consolidating after a sharp upward move, which may result in another upward move once the consolidation phase ends. The stock has consistently remained above a critical moving average. Furthermore, the momentum indicator RSI is showing a bullish crossover and is on the rise. In the short term, there is a possibility that the stock could reach Rs 2.000-2,040 levels. On the lower end, there is a visible support at Rs 1,820.

Indian Bank | Buy | Target Price: Rs 450-465 | Stop Loss: Rs 410
Indian Bank has moved up above its recent consolidation on the daily chart. It has sustained above a critical moving average, indicating positive momentum. The momentum indicator RSI is in a bullish crossover. Based on the above technical setup, the stock looks set for a near-term uptrend.


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