Asian Paints, Tata Steel, AU Small Finance Bank: How to trade these 3 buzzing stocks

Indian benchmark indices kicked-off the week on a muted note on the back of mixed domestic and global cues. Traders continue to remain cautious ahead of key economic data from India and the US. BSE Sensex dropped 200.66 points or 0.25 per cent to end the session at 81,508.46. NSE's Nifty50 dropped 58.80 points or 0.24 per cent, to settle at 24,619 for the day.

Some buzzing stocks including Tata Steel Ltd, AU Small Finance Bank Ltd and Asian Paints Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:

AU Small Finance Bank | Book Profit | Resistance: 603 | Support: Rs 565

AU Small Finance Bank is encountering resistance near the R3 Camarilla pivot zone of Rs 600-603. Hence, we recommend booking profits if long positions have already been taken. Fresh buying opportunities should only be considered after a decisive daily close above Rs 603, signalling potential bullish momentum. On the downside, strong support is anticipated around Rs 565, while resistance remains at Rs 603. For the next 4-5 trading sessions, we expect the stock to consolidate within the range of Rs 565-600, reflecting a phase of sideways movement before any significant breakout.

Asian Paints | Buy | Target Price: Rs 2,500 | Stop Loss: Rs 2,200

The monthly chart of Asian Paints exhibits a notably bearish structure, with the stock forming multiple tops near the Rs 3,500 level and now trading near the Rs 2,400 mark. This suggests a strong resistance at higher levels, leading to a significant downtrend. Moving forward, the stock is expected to test the Rs 2,300 level, where a phase of consolidation between Rs 2,300 and Rs 2,400 could ensue. On the daily chart, the RSI has entered an extremely oversold zone, increasing the likelihood of a technical bounce from lower levels. Hence, a buying opportunity emerges around Rs 2300, targeting a recovery toward Rs 2500, with a stop-loss placed below Rs 2,200 on a daily closing basis to manage downside risks effectively.

Tata Steel | Book Profits | Resistance: 151 | Support: Rs 146

Tata Steel is encountering a significant resistance level around the R3 Camarilla pivot, specifically in the Rs 150-151 zone. This indicates a point where upward momentum is facing selling pressure, making it challenging for the price to sustain further gains. Therefore, traders who have already initiated long positions are advised to consider booking profits near this level to mitigate potential risks of a pullback. Fresh buying opportunities should only be explored once the stock achieves a decisive daily close above Rs 151, which would signal the possibility of a continued upward trend. On the downside, support is expected around Rs 146, providing a potential cushion for the stock. Overall, while the price is currently consolidating near resistance.