Tata Power, BHEL, ABB India: Trading strategies for these buzzing stocks

Domestic benchmark indices settled on a flat note on Wednesday amid mixed global cues, ahead of the US Fed Chairman Jerome Powell’s speech. The BSE Sensex added 33.21 points, or 0.05 per cent, to end at 64,975.61. The NSE Nifty gained 36.80 .05 points, or 0.19 per cent, to end the day at 19,443.50.

A few stocks namely Tata Power Co Ltd, ABB India Ltd and Bharat Heavy Electricals Ltd (BHEL) are likely to be in focus today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

Tata Power Co | Buy | Target Price: Rs 276 | Stop Loss: Rs 240
Tata Power has seen a correction after recent rally. At present, the stock has strongly rebounded from the 100-day SMA and retraced over 50 per cent on the Fibonacci retracement of the recent fall. Also, the rebound was supported by a notable increase in trading volumes, indicating the bullish bias on the counter. Technically, the stock looks sound and is likely to carry upward momentum. Hence, one can buy Tata Power at around Rs 250-254 with a stop-loss of Rs 240 and a target of Rs 276.

Bharat Heavy Electricals | Cautious | Resistance: Rs 134 | Support: Rs 113
BHEL has witnessed a vertical rally from the level of Rs 66 to Rs 148. The stock has surged in line with the rally in the PSU sector. The trend seamlessly has changed but, post such a rally, one should not rule out the potential of cool-off or correction on the counter. As far as the levels are concerned, the support base has slightly moved upwards towards the Rs 113 zone. At present, the stock has a cluster of resistance at the higher zone starting from Rs 134 to 138. Looking at the recent price action, the stock is likely to continue its northward journey but one needs to remain cautious on the counter and should trail profits with strict trailing stop loss.

ABB India | Buy Range: Rs 4,260-4,110 | Target Price: Rs 4,835 | Stop Loss: Rs 3,860
ABB India took the support near the 200-day SMA and reversed after a short-term correction. Post reversal, it successfully traded above the 50-day SMA. Further, on the daily chart, it has been forming higher top-bottoms. The overall formation indicating an uptrend wave is likely to continue. Unless the stock is trading below Rs 3,860, positional traders can retain an optimistic stance and look for a target fresh buying can be considered now and on dips, if any, between Rs 4,260 and Rs 4,110 levels with a stop loss below Rs 3,860 and expect the target of Rs 4,835.

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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