Indian benchmark indices gave up early gains on Tuesday amid concerns over the slowing global economy. The BSE Sensex tanked 632 points, or 1.04 per cent, to settle at 60,115.48. The NSE Nifty50 tumbled 187 points, or 1.03 per cent, to 17,914.15. Despite the weakness, select stocks such as Jindal Steel & Power, Mahindra CIE Automotive and CG Power and Industrial Solutions were on traders’ radar after hitting their respective 52-week highs. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart suggests investors should do with these stocks during the Wednesday's session:
Jindal Steel & Power | Buy | Target Price: Rs 640 | Stop Loss: Rs 510 |
The stock is in a classic uptrend, as evidenced by higher highs and higher lows. It has more than doubled from its low of Rs 304 (June 22) to Rs 600-levels. The counter's overall structure is impressive, as it is trading above all of its key moving averages. On the upside, the stock is facing resistance at Rs 600–610 levels as a psychological hurdle. Above this, one can expect Rs 640 level in the near term. In the past, the stock reversed after a short-term up-move and witnessed profit booking. As a result, traders should look for a dip around Rs 560-575 for a Rs 640 target with a stop loss placed at Rs 510.
Mahindra CIE Automotive | Hold | Target Price: Rs 400 | Stop Loss: Rs 330
The counter has decisively broken out a Cup and Handle pattern formation on the weekly chart, with strong volume. It had also broken out multiple resistance zones placed in the Rs 335-345 range. The structure of the counter is also placed at better levels, but Rs 350-360 levels are acting as a resistance level. Above this range, one may see book profits at Rs 400 level on the upside, while Rs 330 is the major support during any correction.
CG Power and Industrial Solutions | Buy | Target Price: Rs 324 | Stop Loss: Rs 270
On the daily chart, the counter has formed a V-shaped recovery, as well as higher highs and higher lows. It is in a classical upward move, and the structure of the counter is also very lucrative. All the important moving averages are supporting the trend. On the upside, Rs 300 is acting as a psychological level. Above this level, the Rs 324 level will be the short-term target levels. On the downside, Rs 270 is the major support level. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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