Tech Mahindra, Indus Towers, PNB Housing, DCX Systems: Trading strategies for these buzzing stocks

Domestic stock indices gave up early gains and settled sharply lower on Tuesday amid a host of local cues. Sebi's news norms, persisting FPIs selling and concerns over  valuations hurt the market sentiment. The BSE Sensex tanked 1,053.10 points, or 1.47 per cent, to settle at 70,370.55. The NSE Nifty nosedived 333 points, or 1.54 per cent, to end the day at 21,238.80. Midcap and smallcap indices tumbled about 3 per cent each.

A few stocks namely Tech Mahindra Ltd, Indus Towers Ltd, DCX Systems Ltd and PNB Housing Finance Ltd are likely to remain under the spotlight today. Here is what various brokerage firms have to say on these stocks ahead of Wednesday's trading session:

Tech Mahindra | Buy | Target Price: Rs 1,685-1,690 | Stop Loss: Rs 1,220
Tech Mahindra has been consolidating in a broader range of Rs 950-1,300 levels for 18 months, with the price taking support at 200-EMA multiple times on the weekly chart, as buying has emerged there, to keep the stock in the four-figure mark. Last week, the stock gave a fresh breakout above its key resistance level of Rs 1,300 after a series of prolonged consolidation phases. One can observe a delivery buying into the stock after a fresh breakout, which suggests build up of longs on the stock. One can buy the stock in the range of Rs 1,385-1,390 levels for the upside target of Rs 1,685-1,690 levels with stop loss placed below Rs 1,220 level.
Recommended By: SMC Global Securities

PNB Housing Finance | Buy | Target Price: Rs 1,015-1,045 | Stop Loss: Rs 785
PNB Housing broke above its nine-week consolidation phase of Rs 827-760 with a strong bullish candle, signaling uptrend on the weekly chart. The breakout is accompanied by an increase in volume activity, suggesting a surge in market participation. The stock has been adhering to a rising channel formation since the end of March 2023, indicating a medium-term uptrend. The recent support at the lower band, accompanied by a sharp rebound, signifies its current advancement towards the upper band of the channel. The weekly strength indicator RSI has given a crossover above its reference line and generated a buy signal. The above analysis indicates a likely upside towards Rs 1,015-1,045 levels  in the next 3-4 weeks.
 

Recommended By: Axis Securities

Indus Tower | Buy | Target Price: Rs 265-270 | Stop Loss: Rs 185
Indus Tower has been consistently maintaining its bearish trend since 2021 and can be seen trading with a series of lower bottom pattern formation on the weekly chart. For last one year, the stock has been consolidating in a broader range of Rs 135-200. It has been sustaining below its 200-day exponential moving average on the weekly chart. Last week, the stock has shown some recovery as it  was seen giving a renewed momentum above its 200-day exponential moving average. Therefore, one can buy the stock in the range of Rs 215-220 levels for the upside target of Rs 265-270 levels with a stop loss placed below Rs 185 level.
Recommended By: SMC Global Securities

DCX Systems | Buy | Target Price: Rs 408-425 | Stop Loss: Rs 337
DCX Systems has broken out above the ‘falling channel' level at Rs 365 with a bullish candle, signaling the continuation of a medium-term uptrend on the daily chart. It bounced to Rs 393 and experienced a throwback to the breakout area, signifying a reconfirmation of the breakout. The stock is holding above key averages of 20-, 50-, 100-, and 200-day Simple Moving Average (SMA), signaling a strong uptrend in the stock. The daily RSI is at the verge of breakout indicating a positive trend. The above analysis indicates an upside towards Rs 408-425 levels with a holding period of 3-4 weeks.

Recommended By: Axis Securities

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.

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