Tata Motors, Ambuja Cements, IRFC:Trading strategies for these buzzing stocks

Domestic equity indices continued to fall for the second straight session on Wednesday as investors awaited the outcome of the US Federal Reserve policy review. The BSE Sensex dropped 283.60 points, or 0.44 per cent, to end at 63,591.33. NSE's Nifty tumbled 90.45 points, or 0.47 per cent to end the session at 18,989.15.

Some buzzing stocks such as Ambuja Cements Ltd, Tata Motors Ltd and Indian Railway Finance Corporation Ltd (IRFC) are likely to remain under the spotlight today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

Ambuja Cements | Caution | Resistance: Rs 434 | Support: Rs 405
Ambuja Cements exhibited a medium-term downtrend while consolidating between Rs 450 and Rs 420. However, the recent close below the lower band of rising wedge pattern on the weekly chart and a bearish crossover of 20- & 50-DMA, coupled with the daily strength indicator RSI below its reference line, suggest a negative bias on the counter. A decisive close below Rs 405 could induce selling pressure towards Rs 380. However, the bearish view will be negated if prices close above the resistance of Rs 434.

Tata Motors | Range-bound | Resistance: Rs 652 | Support: Rs 615
Tata Motors is in a corrective phase after witnessing the high of Rs 678. From a technical point of view, the stock lacks traction and is consolidating in a slender range. As far as levels are concerned, the support is placed around Rs 615 near 100-DMA followed by the swing low of Rs 575. On the higher end, a series of resistance is placed from Rs 652 to Rs 678 levels from a short-term perspective.

Indian Railway Finance Corporation | Range-bound | Resistance: Rs 81 | Support: Rs 65
IRFC remained confined within the broader range of Rs 81-65 from the last six weeks. Occurrence of the ongoing series of doji candlestick patterns formed with prices enclosed within the mentioned band indicates a range squeeze which could see a breakout or breakdown from the range soon. Breakout above Rs 81 would lead prices on the upside towards Rs 93 levels. While breaching below Rs 65 could induce selling pressure towards Rs 56 on the downside.

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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