Infosys, M&M, Indian Hotels: How should you trade these buzzing stocks

Domestic stock indices on Wednesday took a U-turn at the fag-end session to eras the entire sessions gains, thanks to a disappointing economic data from Europe. The BSE Sensex added 11.43 points, or 0.02 per cent, to settle at 65,087.25. The NSE Nifty rose 4.80 points, or 0.02 per cent, to close at 19,347.45.
Select stocks namely Infosys, Mahindra & Mahindra and Indian Hotels Company are likely to be in focus today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

Infosys | Buy | Target Price: Rs 1,525 | Stop Loss: Rs 1,360
Infosys has strongly recovered from its 200-DSMA and retraced over 50 per cent on the Fibonacci of the recent fall that was seen post a stellar rally earlier this financial year. The recovery was supported by a notable increase in trading volumes, indicating the bullish bias on the counter. Technically, the stock looks sound and is likely to carry upward momentum. Hence, one can ‘Buy’ Infosys around Rs 1,400-1,430 with a stop-loss of Rs 1,360 for a target of Rs 1,525.

Indian Hotels Company | Buy | Target Price: Rs 390 | Stop Loss: Rs 470
Indian Hotels is trading at a 52-week high level, which implies that the stock already is in a strong momentum. A recent breakout from a rectangle pattern along with the formation of Bullish Belt Hold candlestick pattern on the daily chart, at a bullish crossover of 20- and 50-DMA, confirm the continuation of the trend. The opening of Bollinger bands on the daily timeframe suggests rising volatility in the support of an upward move. Going ahead, one can expect the prices to move higher till the level of Rs 470 where the stop-loss must be placed at Rs 390 on a closing basis.

Mahindra & Mahindra | Buy | Target Price: Rs 1,700  | Stop Loss: Rs 1,520
Mahindra & Mahindra has formed an ascending triangle formation and witnessed a congestion breakout of a triangle pattern on the daily timeframe with strong volumes. The overall structure remains favourable for traders, as the stock continues to trade above all its important moving averages, indicating a sustained upward trend. A successful breakthrough above Rs 1,595 level could pave the way for a further upward momentum, with a potential target of Rs 1,700 in the near term. During any corrective moves, the major support level to watch for M&M is Rs 1,520.


(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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