IndusInd, HUL, Poonawalla: How should you trade these buzzing stocks

Domestic stock  indices managed to settle higher after a volatile trading session on Tuesday, thanks to the strong buying in IT stocks. The BSE Sensex gained 205.21 points, or 0.31 per cent, to end the session at 66,795.14. The NSE Nifty rose 37.80 points, or 0.19 per cent, to close at 19,749.25.

Select stocks such as Poonawalla Fincorp, IndusInd Bank and Hindustan Unilever (HUL) are likely to remain in focus today mid the result season. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:

Poonawalla Fincorp | Buy | Target Price: Rs 400-440 | Stop Loss: Rs 350
Poonawalla Fincorp has experienced a breakout of the Triangle formation with strong volume on the weekly chart. The stock retested its breakout trend line and started a new leg of the rally towards the Rs 400 level. The overall structure of the counter looks lucrative, as the stock is trading above all its important moving averages. MACD is supporting the current strength while the momentum indicator RSI is also positively poised. On the upside, the Rs 400 level is an immediate hurdle. Above this, one can expect a move towards Rs 440 level. On the downside, the Rs 350 level is a strong demand zone during any correction.  

IndusInd Bank | Buy | Target Price: Rs 1,540 | Stop Loss: Rs 1,300
IndusInd Bank is seeing a bullish momentum, indicated by the breakout of a Cup and Handle formation on the weekly chart and a flag formation breakout on the daily chart. The overall structure appears promising, as the stock is trading above key moving averages. Nevertheless, the stock is encountering resistance in the Rs 1,410–1,415 range. If it manages to surpass this resistance, a target price of Rs 1,540 or higher is likely. In the case of a correction, Rs 1,300 is a significant support level to watch out for.

Hindustan Unilever | Buy | Target Price: Rs 3,014 | Stop Loss: Rs 2,470
Hindustan Unilever is trying to come out of a long consolidation channel on the daily chart. On the weekly chart, it has witnessed a breakout of a bullish Inverted Head and Shoulders and a retest of its neckline support at around Rs 2,462. The structure looks bullish, as the stock trades above its key moving averages. Conservative investors can take the position at the current level of Rs 2,682 with stop loss Rs 2,470 for a target of Rs 3,014.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)

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