Amid the rising trend in the Indian stock markets in the last few sessions, Rupak De, Senior Technical Analyst at LKP Securities, a domestic brokerage firm has shared three stocks- Bharat Heavy Electrical Ltd (BHEL), Trent Ltd and Action Construction Equipment Ltd (ACE)- from a trading point of view. The analyst has suggested too long all the three counters. Here's what the analyst has to say about these counters:
Trent | Buy | Target Price: Rs 7,700 | Stop Loss: Rs 7,169
Trent has given a consolidation breakout on the daily chart, suggesting a rise in optimism around the stock. Besides, the stock has been sustaining above the critical moving average on the daily timeframe. On the higher end, the current momentum might take the stock towards Rs 7,700, while a support is placed at Rs 7,169.
Bharat Heavy Electrical | Buy | Target Price: Rs 288 | Stop Loss: Rs 254
BHEL has broken out of a consolidation phase on the 2-hour timeframe, signaling increased optimism. Additionally, it has moved higher after finding support at the lower band of the falling channel. The momentum indicator RSI is showing a bullish crossover. Based on this technical setup, the stock could potentially reach Rs 288 in the near to short term. However, a drop below Rs 254 may push the stock back into consolidation.
Action Construction Equipment | Buy | Target Price: Rs 1,400 | Stop Loss: Rs 1,274
ACE has risen sharply, supported by increased volume on the daily timeframe. The RSI shows a bullish crossover and is trending upward. The price has moved higher after finding support at the 200-DMA. On the higher end, resistance is seen at 1,400, while support is placed at 1,274. The stock presents a good buying opportunity on a dip around 1,310.