Tata Investment, IndusInd Bank, Nestle: How to trade these buzzing stocks

Indian benchmark indices settled on a positive note on Thursday despite a short-lived blip in the fag-end session. Traders are awaiting the union budget and FIIs flows for the near-term triggers. Broader markets faced the wrath of bears. BSE Sensex jumped 226.85 points, or 0.30 per cent, to end the session at 76,759.81. NSE's Nifty50 plunged 86.40 points, or 0.37 per cent, to settle at 23,249.50 for the day.

Some buzzing stocks including Tata Investment Corporation Ltd, Nestle India Ltd and IndusInd Bank Ltd are likely to remain under the spotlight of traders for the session today. Here is what Kushal Gandhi, Technical Analyst at StoxBox has to say on these stocks ahead of Friday's trading session:

Tata Investment Corporation | Avoid | Support: Rs 5,415

Tata Investment stock is currently in stage 3 of its stock cycle, which is characterized by potential distribution by savvy investors. Following an impressive 463 per cent rise from the lows of March 2023 to its peak, the stock has entered a phase of distribution. The RSI on both daily and higher time frames is showing a negative slope, indicating a decline in price momentum, which is a concerning development. The stock has demonstrated underperformance in its relative strength compared to its 12-month performance and the Nifty50, leading to a decrease in buyer demand. The stock is currently moving sideways, lacking any clear directional bias, and a drop below the support level of Rs 5,415 could trigger further selling pressure. Therefore, we recommend avoiding the purchase of this stock.

Nestle India | Hold | Target Price: Rs 2,280 | Stop Loss: Rs 2,113

The share price of Nestle India is currently experiencing a downtrend, trading cautiously at its immediate support level around Rs 2,145. Following a substantial 23 per cent correction from its record high of 2778, the stock demonstrates resilience against further declines, mirroring its sectoral index. However, its price performance has been lackluster compared to both its performance over the last 12 months and the Nifty50, alongside a noticeable decrease in buying demand. Overall sector demand also remains weak in the current market environment. From a technical perspective, the RSI on daily and higher time frames is positioned below the median levels, indicating sluggish momentum. The resistance level at Rs 2,280 is significant, and a decisive breach of this resistance could signal potential signs of a trend reversal. We advise refraining from making new purchases and recommend holding the stock, using the 200-week moving average, currently near Rs 2,113, as a stop-loss point.

IndusInd Bank | Avoid

The share price of IndusInd is in a confirmed downtrend, with no signs of recovery evident in the technical data. The stock is trading 45 per cent below its peak of Rs 1,694, reached in January of last year. Presently, the price action is significantly below the 50-week moving average, while the shorter-term daily moving average has been acting as a persistent supply zone, leading to consistent rejections of any significant recovery attempts—an unfavorable development. This situation has resulted in a marked decline in its EPS strength, relative strength to Nifty50 and its past 12-month price performance, and buyer demand. Therefore, we recommend exiting this stock and exploring opportunities in HDFC Bank, Kotak Bank, or ICICI Bank within the private banking sector.