Buy PNB, Nalco shares; sell Tata Motors stock, says Arihant Capital

Indian benchmark indices posted solid gains on Friday, thanks to the broad based buying at the lower levels. Assembly election results and expectations of a strong earnings season in the second half of the current fiscal supported the sentiments. BSE Sensex zoomed 1,961.32 or 2.54 per cent to end the session at 79,117.11. NSE's Nifty50 rallied 557.35 points or 2.39 per cent, to settle at 23,907.25 for the day.

Some buzzing stocks including Punjab National Bank (PNB), National Aluminium Company Ltd (Nalco) and Tata Motors Ltd are likely to remain under the spotlight of traders for the session today. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

National Aluminium Company | Buy | Target Price: Rs 308-330 | Stop Loss: Rs 230

We are observing a higher high formation on the daily charts of Nalco. Further, the momentum indicator RSI is positively poised and even the stock is outperforming the benchmark indices. Combining all the above formation it is evident that momentum on the upside is likely to continue. Hence, one can buy the stock at current levels with a stop loss of Rs 230 for a target Rs 308-330 levels in a couple of weeks.

Tata Motors | Sell | Target Price: Rs 730-690 | Stop Loss: Rs 840

We are observing a lower top lower bottom formation in Tata Motors on the daily charts. Further, the momentum indicator RSI is negatively poised. Even the stock is underperforming the benchmark indices. At present the stock is facing resistance at Rs 830. Hence, one can sell the stock with a stop loss of Rs 840 for a target Rs 730–690 levels in a couple of weeks.

Punjab National Bank | Buy | Target Price: Rs 113-120 | Stop Loss: Rs 92

After a prolonged downtrend, we are observing that prices of PNB have taken support at Rs 94 level and are in making higher high formation on the daily chart. At present the stock is underperforming the benchmark indices. However, the momentum indicator RSI is positively poised. Hence a bounce is in offing. One can buy the stock at current levels with a stop loss of Rs 92 for targets Rs 113–120 levels in a couple of weeks.