Hero MotoCorp, ONGC, GNFC: How to trade these buzzing stocks

Indian benchmark extended its northward move but the gains remained limited for the day ahead of the US Fed's policy outcome. Traders are avoiding aggressive positions amid the uncertainty around rate cuts. BSE Sensex rose 90.88 points or 0.11 per cent, to end the session at 83,079.66. NSE's Nifty50 gained 34.80 points, or 0.14 per cent, to close at 25,418.55 for the day.

Some buzzing stocks including Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), Oil & Natural Gas Corpn Ltd (ONGC), Hero MotoCorp Ltd are likely to remain under the spotlight of traders for the session today. Here is what Vishnu Kant Upadhyay, AVP of Research and Advisory at Master Capital Services has to say on these stocks ahead of Wednesday's trading session:

Hero MotoCorp | Buy | Target price: Rs 6,420-6,250 | Stop Loss: Rs 5,650

Hero MotoCorp has recently broken out of a double-top formation, supported by a notable increase in trading volumes, signaling heightened participation from fresh buyers. The broader trend remains bullish, as evidenced by the formation of higher highs and higher lows. In addition to the positive price action, the bullish crossover between the 21-day and 55-day EMAs, coupled with the RSI surpassing its falling trendline resistance, reinforces the potential for continued upward momentum. This indicates the likelihood of further upside, with a target range of Rs 6,420-6,450.

Oil & Natural Gas Corporation | Buy | Target price: Rs 320-325 | Stop Loss: Rs 279

ONGC has experienced a healthy correction of nearly 17 per cent from its all-time high, following a strong bullish run characterized by higher highs and higher lows. Currently, prices are consolidating just above a key horizontal support zone, which previously acted as strong resistance during prior rallies. The recent decline has been accompanied by decreasing trading volumes, suggesting no immediate cause for concern. Moreover, prices remain above the 34-week EMA, a critical support level in past trends, while the RSI is forming a double bottom on the daily chart. We anticipate a potential reversal from the current level, with support expected around Rs 320-325.

Gujarat Narmada Valley Fertilizers & Chemicals | Buy | Target price: Rs 710-715 | Stop Loss: Rs 615

GNFC is consolidating within a narrow trading range, forming an ascending triangle pattern on the weekly chart, indicating a positive overall bias. As prices hover near this pattern's lower boundary, the likelihood of a bullish rebound is heightened. Notably, the 100-week EMA is situated close to this lower boundary, further emphasizing the significance of this level as a key support zone. We believe this bullish setup will increase short term traders to build fresh long positions for the upsurge of around Rs 710-715.