Bharat Forge, JSW Steel, ITC: How to trade these 3 buzzing stocks

Indian benchmark indices managed to post decent gains on Wednesday on the back of positive domestic and global cues. The lower inflation numbers are supporting the sentiments at Dalal Street. BSE Sensex jumped 192.34 points, or 0.22 per cent to settle at 81,330.56, while NSE's Nifty50 gained 88.55 points, or 0.36 per cent to end at 24,666.90 for the day.

 

Select buzzing stocks including JSW Steel Ltd, ITC Ltd and Bharat Forge Ltd and are likely to remain under the spotlight of traders for the session today. Here is what by by Laxmikant Shukla, Senior Technical Analyst at YES Securities has to about these stocks ahead of Thursday trading session:

 

JSW Steel | Hold | Resistance: Rs 1,040 | Support: Rs 935

JSW Steel is currently facing resistance near its recent swing high of Rs 1015-1040 zone. Last week's trading session formed an ‘Doji’ candlestick pattern on the weekly chart, precisely at the key support zone near the previous swing low of Rs 935. Despite this, the stock has solidly witnessed resistance near the mentioned zone. A positive outlook remains valid as long as it stays above Rs 935. A breakout above Rs 1,040 could drive the stock higher towards uncharted territory.

 

Bharat Forge | Buy | Target Price: Rs 1,350 | Stop Loss: Rs 1,190

Bharat forge has experienced a falling trendline breakout on the daily chart, accompanied by a positive crossover of short-term SMAs of 20 & 50. Additionally, the stock has given breakout from its ‘Symmetrical Triangle’ pattern on a broader time frame and appears poised to maintain positive momentum in the near term. The technical indicators align well with this bullish trend, further enhancing the stock's potential for upward movement. Hence, we recommend buying Bharat forge around Rs 1,225-1,245, keeping a stop loss of Rs 1,190 for a potential target of Rs 1,350.

 

ITC | Caution | Resistance: Rs 440 | Support: Rs 420

Fluctuations in ITC have remained within a narrow range for the past few weeks. This lack of clear direction calls for a decisive breakout, either above Rs 440 or below Rs 420, to establish the next move. A drop below Rs 420 could lead to a decline towards Rs 407 while sustained trading above Rs 440 might push the index up to Rs 465-470 zone. Investors should monitor these levels closely for potential trading opportunities. Additionally, volume trends may provide further insight into the strength of any breakout or breakdown.