Bajaj Auto, IndusInd Bank, Mahanagar Gas: 3 stock picks for short term trade

The Indian benchmark indices showed some initial signs of recovery amid the trade war fears, adding to the volatility in the equity markets. However, Vishnu Kant Upadhyay, AVP - Research and Advisory at Master Capital Services has shared three stocks- IndusInd Bank Ltd, Bajaj Auto Ltd and Mahanagar Gas (MGL) and - from a trading point of view. The analyst has suggested to 'buy' all the three counters. Here's what the analyst has to say about these counters.

IndusInd Bank | Buy | Target Price: Rs 1,088 | Stop Loss: Rs 945

IndusInd Bank has shown promising recovery, as prices have decisively moved above the 21-day and 50-day EMAs, signaling a shift in momentum. The recent breakout is supported by rising volumes, indicating fresh buying interest. The RSI has crossed the 50 mark, reflecting strengthening bullish sentiment. Additionally, the MACD line is narrowing its gap with the signal line, suggesting the potential for a bullish crossover. The stock appears poised to extend its upward momentum, with immediate resistance near Rs 1,088 and support at Rs 945. Traders can consider this positive setup for short-term gains, as the trend reversal gains traction.

Mahanagar Gas | Buy | Target Price: Rs 1,480 | Stop Loss: Rs 1,282

Prices of MGL have witnessed a strong bullish breakout above its key resistance zone near Rs 1,324, supported by robust volumes. The stock is trading comfortably above the 21-day and 50-day EMAs, signaling a bullish continuation. The price action indicates the formation of a rounding bottom pattern, which is a bullish reversal structure. The RSI is holding above the 60 mark, reflecting sustained positive momentum, while the MACD has witnessed a bullish crossover, reinforcing upward prospects. Immediate resistance is seen near Rs 1,480, while support lies at Rs 1,282.

Bajaj Auto | Buy | Target Price: Rs 9,864 | Stop Loss: Rs 8,525

Bajaj Auto has witnessed a sharp rebound from its recent lows, breaking above the key resistance zone near Rs 8,800 with strong bullish momentum. The stock is now trading above the 21-day and 50-day EMAs, indicating a trend reversal to the upside. The price action suggests a double-bottom formation around Rs 8,400, which is a bullish reversal pattern. RSI has surged above the 60 mark, confirming strength in momentum, while the MACD is narrowing its bearish histogram, hinting at a potential bullish crossover. Immediate resistance is seen at Rs 9,864 which is quite approachable if prices remained well above 21-day EMA.