Bajaj Finserv, Dr Reddy's Labs, Hindalco: How should you trade these stocks

Dalal Street extended its weakness for the second straight session to settle with cuts on Friday amid non-conducive global cues. The BSE Sensex plunged 398.18 points, or 0.69 per cent, to 57,527.10, The Nifty declined 132 points, or 0.77 per cent, to 16,945.05 for the week.

Select stocks such as Bajaj Finserv, Dr Reddy's Laboratories and Hindalco Industries were on traders' radar. Here is what Mileen Vasudeo, Sr Technical Analyst, Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

Bajaj Finserv | Sell | Target Price: Rs 1,100-1,050 | Stop Loss: Rs 1,310

Bajaj Finserv is maintaining lower top-lower bottom formation. The momentum indicator viz MACD is negatively poised and the stock has poor relative strength. It is evident that momentum on the downside is likely to continue. Hence, one can sell the stock at current levels with a stop loss of Rs 1,310, for a target of Rs 1,100-1,050 levels in the next couple of weeks.

Dr Reddy's Laboratories | Buy | Target Price: Rs 4,600-4,700 | Stop Loss: Rs 4,380

Dr Reddy's Labs is trading sideways for the last four weeks in the range of Rs 4,409 on the lower side and Rs 4,499 on the higher side. The stock is clearly outperforming the benchmark indices, as it has higher relative strength. Further, the momentum indicator viz the RSI is positively poised. Hence, one can buy at current levels with a stop loss of Rs 4,380 for a target of Rs 4,600-4,700 levels in the next couple of weeks.

Hindalco Industries | Sell | Target Price: Rs 358-329 | Stop Loss: Rs 403

Hindalco is maintaining lower top lower bottom formation and showing poor relative strength. Further, the momentum indicator is negatively poised, this suggests that momentum on the downside is likely to continue. Hence, one can sell at the current price with a stop loss of Rs 403 for a target of Rs 358 and Rs 329 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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