HDFC Bank, Bajaj Finance, BSE: How to trade these 3 stocks

Indian benchmark indices managed to recover all the early cuts and settled higher on Friday. Buying in select pockets supported the sentiments on the street amid a host of positive global cues. BSE Sensex jumped 218.14 points or 0.27 per cent, to end the session at 81,224.75. NSE's Nifty50 gained 104.20 points, or 0.42 per cent, to close at 24,854.05 for the day.

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Some buzzing financial stocks including HDFC Bank Ltd, Bajaj Finance Ltd and BSE Ltd are likely to remain under the spotlight of traders for the session today. Here is what Mileen Vasudeo, Senior Technical Analyst, Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

 

HDFC Bank | Buy | Target Price: Rs 1,994-2,0505 | Stop Loss: Rs 1,830

We are observing that prices have reclaimed the 50-days SMA on the daily charts. Further, the momentum indicator RSI is positively poised which suggests that momentum on the upside may continue. However, the stock is underperforming the benchmark indices. Hence, one can buy the stock at the current prices with a stop loss of Rs 1,830 for targets of Rs 1,994 -2,050 levels in the next couple of weeks.

 

Bajaj Finance | Buy | Target Price: Rs 7,110-7,220 | Stop Loss: Rs 6,820

We are observing a 'Doji' candlestick pattern on the daily charts after a six days of fall. This suggests that a pullback rally is in offing. At present, the stock is underperforming the benchmark indices. However, the momentum indicator RSI is exiting the oversold zone. Hence, one can buy the stock at current levels with a stop loss of Rs 6,820 for targets Rs 7,110 –7,220 levels in a couple of weeks.

 

BSE | Buy | Target Price: Rs 4,500-4,650 | Stop Loss: Rs 4,150

We are observing a higher high formation which is a sign of strength on the Daily charts. At present, the stock has support at Rs 4,250-4,200 level. The stock is outperforming the benchmark indices. Even the momentum indicator RSI is positively poised.  Hence, one can buy the stock at current levels with a stop loss of Rs 4,150 for targets of Rs 4,500–4,650 levels in the next couple of weeks.