Adani Power, HDFC Bank, LTTS: How should you trade these buzzing stocks

Domestic equity indices settled higher on Friday, thanks to buying action in IT stocks and better-than-expected Q1 earnings by India Inc. The BSE Sensex gained 502 points, or 0.77 per cent, to end at 66,060.90, settling above 66,000-mark for the first time on a closing basis. The NSE Nifty gained 150.75 points, or 0.78 per cent, to close at 19,564.50.

Select stocks such as L&T Technology Services, HDFC Bank and Adani Power are likely to remain under the spotlight amid the results season. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

HDFC Bank | Hold | Target Price: Rs 1,720-1,800 | Stop Loss: Rs 1,600
HDFC Bank on June 15 made a bottom of Rs 1,574, before making a high of Rs 1,757 on July 3. At present, the stock is seeing a corrective move from the prior up move and is approaching the 200-day SMA of Rs 1,600, which is likely to act as a support. One can hold the stock at current levels with a stop loss of Rs 1,600 for a target of Rs 1,720-1,800 levels in the next couple of weeks.

L&T Technology Services | Sell | Target Price: Rs 4,400-4,550 | Stop Loss: Rs 3,950
L&T Technology Services (LTTS) has given a W-pattern breakout with huge volume. The stock has recently started outperforming the benchmark indices. Even the momentum indicator, viz., the RSI, is gaining momentum. Combining all the above parameters, it is evident that the stock is likely to continue its upside momentum. Hence, one can ‘Buy’ the stock at current levels with a stop loss of Rs 3,950 for a target of Rs 4,400-4,550 levels in the next couple of months.

Adani Power | Sell | Target Price: Rs 220-210 | Stop Loss: Rs 250
Adani Power is maintaining a lower-top lower-bottom formation on the daily chart, which is a sign of weakness. The stock is clearly underperforming the benchmark indices. Even the momentum indicator, viz., MACD, is in negative territory. Hence, one can ‘Sell’ the stock at current prices with a stop loss of Rs 250 for a target of Rs 220–210 levels in the next couple of weeks.


(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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