Adani Power, Bajaj Finance, PNC Infratech: How to trade these 3 buzzing stocks

Indian benchmark indices settled little changed on Thursday, on the last expiry of the year amid the absence of major domestic and global triggers. The trend remains muted ahead of the new year. BSE Sensex shed merely 0.39 points to end the session at 78,472.48. However, NSE's Nifty50 gained 22.55 points or 0.1 per cent, to settle at 23,750.20 for the day.

Some buzzing stocks including Adani Power Ltd, PNC Infratech Ltd and Bajaj Finance Ltd are likely to remain under the spotlight of traders for the session today. Here is what Kushal Gandhi, Technical Analyst at StoxBox has to say on these stocks ahead of Friday's trading session:

Adani Power | Avoid

The price action of Adani Power continues to face sustained selling pressure, despite a modest recovery observed in late November after a considerable decline of 52 per cent from its record high of Rs 895. The stock is trading below key moving averages, including the 50 and 200 DMA, accompanied by a negative crossover of these averages, which indicates a bearish trend with diminishing momentum. These moving averages serve as strong resistance levels, while the shorter-term moving averages act as immediate supply zones, preventing any significant recovery. This situation has resulted in a notable deterioration in earnings per share, price strength, and overall buyer demand. Therefore, we advise against purchasing Adani Power stock.

PNC Infratech | Buy | Target Price: Rs 366 | Stop Loss: Rs 305

The share price of PNC Infra has recently experienced a significant decline, plunging 51 per cent from its record high of Rs 574 and breaking through a crucial support level around Rs 395, all while recording the highest selling volume of the quarter in late October. Currently, the stock is trading below key moving averages, including the 50-day average, along with 200 DMA. This scenario, coupled with a negative crossover of these averages, points to a bearish trend characterized by diminishing momentum, leading us to recommend avoiding purchases from a medium to long-term perspective. However, recent price action has demonstrated resilience against further declines and appears to be forming a double-bottom pattern, which could signal a trend reversal. The previous trading session exhibited heightened activity in both volume and momentum, enabling the price action to reclaim 50 DMA. This development presents an opportunity for a short-term trade as we anticipate this momentum will support a modest recovery towards a target price of Rs 366. We advise setting a stop loss at Rs 305.

Bajaj Finance | Avoid

The pattern analysis of Bajaj Finance reveals a sideways trend over the past three years, characterized by diminishing price depth and time corrections following each price contraction. Consequently, the primary trend currently does not provide any clear directional bias. The stock shows a relative weakness compared to the Nifty50, with volatility slightly elevated. Additionally, the daily RSI is trending downward below the median levels, indicating a decline in momentum. Therefore, we recommend refraining from purchasing shares of Bajaj Finance at the current market price.