Indian benchmark indices concluded the week on a slightly positive note amidst a volatile trading session on Friday, driven by mixed global cues and expectations of a possible rate cut signal from the US Federal Reserve. The BSE Sensex increased 33.02 points, or 0.04%, to settle at 81,086.21 points, and the NSE Nifty50 gained 11.65 Points, or 0.05%, to close at 24,823.15 points.
A few key stocks such as Tata Steel Ltd, Adani Enterprises Ltd, and Bharat Dynamics Ltd are expected to catch the favour of traders today and Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets offers his views on these from his perspective before today’s trading session.
Tata Steel | Buy | Target Price – Rs 178 – 190 | Stop Loss – Rs 142
Tata Steel fell from the June 2024 high of Rs 184 to Rs 142, as seen on the daily charts. The stock has now been trading sideways and is above the 200-day SMA of Rs 150.
The daily RSI indicator shows a positive divergence which suggests a potential pullback rally. Traders may view this at current levels with a stop loss of Rs 142 and a target price of Rs 178 – 190 in a few weeks.
Also Read: UK Government Announces £13.5 Million Fund to Support Tata Steel’s Transition at Port Talbot
Adani Enterprises | Buy | Target Price – Rs 3,219 – 3,292 | Stop Loss – Rs 3,000
Adani Enterprises is now displaying sideways momentum with no clear bias direction as per the daily charts. The stock has strong resistance at Rs 3,150. The required break level is above with relatively strong volume on the break.
The RSI is also currently trading sideways which would support the buy recommendation at current levels with a stop loss at Rs 3,000 and a target of Rs 3,219 – 3,292 in the next few weeks.
Also Read: Tata Group Stocks Rallied 300% in 3 Years!
Bharat Dynamics | Buy | Target Price: Rs 1,394-1,430 | Stop Loss: Rs 1,270
Bharat Dynamics has tested weekly support at its 150-day SMA of Rs 1,157 and created a solid bullish candle on the daily charts. The stock is continuing to outperform benchmark indices while momentum indicators suggest more upside ahead.
We recommend purchasing at current levels with a stop loss at Rs 1,270 and an eventual target between Rs 1,394 and Rs 1,430 within a couple of weeks.
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People May Ask
What are the target prices and stop loss levels for Tata Steel, Adani Enterprises, and Bharat Dynamics?
- For Tata Steel: Buy with a target price of ₹178-190 and a stop loss of ₹142.
- For Adani Enterprises: Buy with a target price of ₹3,219-3,292 and a stop loss of ₹3,000.
- For Bharat Dynamics: Buy with a target price of ₹1,394-1,430 and a stop loss of ₹1,270.
Why is Tata Steel recommended for a buy despite a recent correction?
Tata Steel was recommended as a buy because of positive RSI divergence and support at the galvanization level above its 200-day simple moving average, which suggests a pullback rally.
What is the significance of the resistance at ₹3,150 for Adani Enterprises?
The ₹3,150 level is considered a strong resistance level for Adani Enterprises. Closing above it with a good amount of volume may invite upward momentum.
Why is Bharat Dynamics considered as outperformer in the current market?
Bharat Dynamics is running up against benchmark indices. Support around a 150-day simple moving average and positive momentum across indicators implement the backward step and suggest upward meaning.
Should these stock recommendations be considered as investment advice?
These stock recommendations are added for informational purposes. We advise seeking advice from a qualified Financial Advisor before making any investment decision.
Disclaimer: The information provided above is intended to be informational only and should not be construed as investment advice. We advise you to speak to a reputable financial advisor before making any investment decisions.
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