Reliance Industries, Bajaj Finance, SBI Life: Trading strategies for these largecap stocks

Domestic benchmark rose on Friday, to take winning run to the second straight session. The BSE Sensex added 178.58 points, or 0.25 per cent, to settle at 72,026.15. The NSE Nifty added 52.20 points, or 0.24 per cent, to end the day at 21,710.80.

A few largecap stocks namely SBI Life Insurance Company Ltd, Reliance Industries Ltd and Bajaj Finance Ltd are likely to be in focus today. Here is what Kunal Shah, Senior technical and Derivative analyst at LKP Securities has to say on these stocks ahead of Monday's trading session:

SBI Life Insurance Company | Buy | Target Price: Rs 1,510-1,535 | Stop Loss: Rs 1,415
SBI Life is exhibiting a positive trend on the daily chart with consistent higher high-low formations. At present, the stock is sustaining above its 20-day moving average, indicating an underlying strength. The Relative Strength Index (RSI) is on the verge of a bullish crossover, suggesting potential upward momentum. One can consider initiating a long position on the counter in the range of Rs 1,440-1,455, setting a stop loss at Rs 1,415, for a target of Rs 1510-1535.

Reliance Industries | Buy | Target Price: Rs 2,760-2,900 | Stop Loss: Rs 2,525
Reliance Industries is exhibiting positive technical signals. The stock has recently closed above its major resistance at Rs 2,593, indicating a fresh weekly breakout with increasing volumes. Additionally, the stock is showing a positive divergence on the weekly chart, signifying positive strength. The RSI crossover is indicating buying opportunities at current levels. As per the current breakout, there's a technical expectation of reaching levels around Rs 2,760 to Rs 2,900 on the upside. To manage risk effectively, it is recommended to maintain a stop-loss at Rs 2,525 on a closing basis. For potential investors, a favourable entry point is at the current price and on dips around Rs 2580.

Bajaj Finance | Buy | Target Price: Rs 8,000-8,300 | Stop Loss: Rs 7,500
Bajaj Finance is currently exhibiting positive technical indicators. The stock has recently closed above its major resistance at Rs 7,650, signalling a fresh weekly breakout with increasing volume. A recent swing high breakout on the daily chart indicates substantial strength in the stock. The RSI crossover suggests a buying opportunity at current levels. Based on the breakout, there is a technical expectation of reaching levels around Rs 8,000 to Rs 8,300 on the upside. To manage risk effectively, it is advisable to maintain a stop-loss at Rs 7,500 on a closing basis. For potential investors, a good buying entry point is at the current prices and on dips around Rs 7,660.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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