JSW Steel, Inox Wind, Infosys: Trading strategies for these 3 buzzing stocks

Indian benchmark indices kicked off the week on a strong note but profit booking in the fag-end of the session dragged the headline indices lower on Monday amid mixed trends from the global and domestic fronts. BSE Sensex dropped 203.28 points, or 0.27 per cent to settle at 76,490.08. NSE's Nifty50 index declined 30.95 points, or 0.13 per cent, to end the session at 23,259.20.

Some buzzing stocks, namely JSW Steel Ltd, Inox Wind Ltd and Infosys Ltd are likely to remain under the spotlight of traders for the session today. Here is what analysts at Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers has to say on these stocks ahead of Tuesday's trading session:

JSW Steel | Book Profits | Resistance: Rs 920-930

JSW Steel has shown a promising upward movement recently, which might make it appear as an attractive investment opportunity at the current stage. However, caution is advised because the stock is nearing the completion of a bearish bat pattern. Double top structure seen on hourly charts typically signals a potential resistance with RSI making hidden bearish divergence. Given this context, it is prudent for investors to consider booking profits within the 920-930 price range to lock in gains from the recent upward momentum. Additionally, initiating long new positions should be avoided.

Inox Wind | Book Profits | Resistance: Rs 155-160

A bearish engulfing pattern has emerged on the weekly scale for Inox Wind at the current juncture, indicating a potential reversal in its recent uptrend and signalling a matter of concern for investors. This pattern, characterized by a large bearish candle that completely engulfs the body of the preceding smaller bullish candle, suggests that sellers have gained control over the market. Given this bearish signal, it is prudent to consider booking profits in the Rs 150-154 zone to secure gains before a potential decline. Additionally, the stock faces significant resistance in the Rs 155-160 zone, where multiple tops have formed, indicating that it has struggled to move past this price range in the past and is likely to do so again. This resistance level poses a substantial barrier to further upward movement. Therefore, it is advised to avoid initiating new long positions and to book profits if the stock has already been bought, as the likelihood of a price drop increases amidst these technical indicators.

Infosys | Buy | Target Price: Rs 1,550 | Stop Loss: Rs 1,435

Infosys has experienced a breakout after a period of consolidation within the range of Rs 1.350-1,450. This breakout suggests a potential shift in the stock's trend and has generated interest among investors. Currently, the stock is trading above this breakout range, indicating initial strength. However, it is advisable to exercise caution and adopt a wait-and-watch approach until the stock retests the top of the breakout range to confirm the breakout's validity. If the stock successfully tests this level and holds, it will demonstrate the breakout's genuineness and present a favourable opportunity for going long. In this scenario, one could consider entering a long position in the range of Rs 1,465-1,470, targeting an upside move to Rs 1,550. To manage risk, a stop-loss should be placed near Rs 1,435 on a daily close basis, ensuring that any adverse price movement is limited. This strategy balances the potential for gains with prudent risk management.

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