ITC, Tata Motors, SBI: How to trade these 3 buzzing largecap stocks

Indian benchmark indices settled marginally lower on Friday after the RBI's monetary policy. Overall the street exhibited a cautious outlook following the cut in India's growth forecasts. BSE Sensex shed 56.74 points or 0.07 per cent to end the session at 81,709.12. NSE's Nifty50 dropped 30.60 points or 0.12 per cent, to settle at 24,677.80 for the day.

 

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Some buzzing stocks including ITC Ltd, Tata Motors Ltd and State Bank of India (SBI) are likely to remain under the spotlight of traders for the session today. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

 

Tata Motors | Buy | Target Price: Rs 888-920 | Stop Loss: Rs 780

We are observing that Tata Motors has taken support at Rs 785 level on the daily charts. Further, the momentum indicator RSI is positively poised. At present the stock is facing resistance at Rs 825 level. Any close above 825 may propel the upside momentum to Rs 888 – 920 level. Hence, one can buy the stock at current levels with a stop loss of Rs 780 for the targets of Rs 888-920 levels in a couple of weeks.

 

State Bank of India | Buy | Target Price: Rs 920-950 | Stop Loss: Rs 830

We are observing a higher high formation on the daily charts of SBI. Further, the momentum indicator RSI is positively poised and even the stock is outperforming the benchmark indices. Combining all the above formation it is evident that momentum on the upside is likely to continue. Hence, one can buy the stock at current levels with a stop loss of Rs 830 for the targets of Rs 920-950 levels in a couple of weeks.

 

ITC | Buy | Target Price: Rs 510-530 | Stop Loss: Rs 450

We are observing that prices of ITC have taken support at the 200-days SMA at Rs 259 and have bounced from those levels on the daily charts. At present the stock is underperforming the benchmark indices. However, the momentum indicator RSI is positively poised. Hence, one can buy  the stock at current levels with a stop loss of Rs 450 for a target of Rs 510-530 levels in a couple of weeks.