Infosys, Hindustan Aeronautics, Biocon: Trading strategies for these stocks

Indian equity markets took a breather on Wednesday after a three-day rebound and settled slightly lower for the day, thanks to election-led uncertainty and consistent selling from the FIIs. BSE Sensex dropped 117.58 points, or 0.16 per cent to settle at 72,987.03. NSE's Nifty50 index ended at 22,200.55, falling 17.30 points or 0.08 per cent for the day.

Some buzzing stocks namely Biocon Ltd, Hindustan Aeronautics Ltd and Infosys Ltd are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

Biocon | Buy | Target Price: Rs 360 | Support: Rs 292
Biocon is displaying signs of breaking out from a prolonged consolidation period and has successfully breached the Pole and flag pattern. The pattern implies an immediate target of Rs 360. On the downside Rs 292 is expected to act as a crucial support level. Both the MACD and RSI indicators are providing support to the current bullish momentum. The MACD indicates strength while the RSI is positively poised, affirming upward sentiment. Considering these factors, we recommend buying Biocon within the range of Rs 310-315, setting a stop loss at Rs 292 on a closing basis, and targeting Rs 360.

Hindustan Aeronautics | Buy | Target Price: Rs 4,750 | Support: Rs 3,670
HAL has demonstrated a robust upward trend from October 2023 to May 2024 lasting around 29 weeks. Throughout this period, it consistently formed higher highs and higher lows, indicating a strong uptrend. Analyzing the weekly chart, we observe the emergence of bullish candles, signaling continued upward momentum. Nevertheless, after such a substantial uptrend, it's prudent to anticipate a phase of consolidation or correction. Therefore, it's advisable to view any pullback towards the Rs 4,000-4,050 range as a buying opportunity. Setting a stop loss at Rs 3,670 can help manage risk while aiming for an upside target of Rs 4,750 levels.

Infosys | Caution | Resistance: Rs 1,450 | Support: Rs 1,370
Infosys has displayed a bearish sentiment evidenced by its breakdown from the rising channel pattern observed on the weekly chart. Currently, it is trading below all its key moving averages including the 20, 50, 100 and 200-day SMAs indicating sustained downward pressure. Additionally, the daily RSI remains consistently lower compared to its reference line, further confirming the bearish trend. The formation of bearish candles below the middle band of Bollinger suggests a continuation of weakness, reinforcing the bearish outlook. Any recoveries in price should be viewed as opportunities to consider selling positions, as the overall trend appears to be downward.

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