Suzlon Energy, Hero MotoCorp, Bajaj Finance: Trading strategies for these buzzing stocks

Domestic stock indices snapped a four-day winning run and settled lower on Tuesday amid selling pressure in IT and financial stocks. The BSE Sensex dropped 195.16 points, or 0.26 per cent, to settle at 73,677.13. The NSE Nifty index shed 49.30 points, or 0.22 per cent, to end the session 22,356.30.

A few stocks Bajaj Finance Ltd, Hero MotoCorp Ltd and Suzlon Energy Ltd are likely to be in focus today. Here is what analysts at Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:

Bajaj Finance | Resistance: Rs 6,800 | Support: Rs 5,900

Bajaj Finance saw a breakdown of a Head & Shoulder pattern formation with huge volumes on the longer timeframe. The structure of the counter is distorted, as it is trading below all its important moving averages. The momentum indicators RSI and MACD are negatively placed. On the downside, the Rs 5,900 level is the important psychological support level, below which one can expect a revisit of Rs 5,500 level during a correction. On the upside, the Rs 6,800 level offers a resistance level, above which one can expect a move towards Rs 7,200 level.

Hero MotoCorp | Resistance: Rs 4,700 | Support: Rs 4,300

Hero MotoCorp saw profit-taking at higher levels. But it found support at the 50-day moving average (DMA) and has begun a new upward move towards a potential new high of Rs 5,000. The stock's overall structure looks promising, as it is trading above all key moving averages and is forming higher high-lows. The momentum indicator RSI is showing positive momentum, while the MACD is indicating a bullish trend with a centerline crossover. On the upside, the Rs 4,700 level is a crucial psychological level, surpassing which the stock see levels of Rs 4,900 in the near term. On the downside, the Rs 4,300 level is a significant support level during any corrective phase.

Suzlon Energy | Resistance: Rs 45 | Support: Rs 39

Suzlon Energy has witnessed a breakdown from the Head & Shoulder pattern formation on the daily chart. The overall structure is distorted as it trades below the 9-, 20-, 50-day SMA moving averages. The momentum indicators are also negatively poised. However, there is potential support at Rs 39, which could slow down the decline. If the price breaks below Rs 39, the next level of support is likely to be at Rs 35. On the upside, the stock faces resistance at Rs 45. If the price can break above Rs 45, it could signal a reversal of the downtrend.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.