BHEL, Tata Motors, ABB India: How should you trade these buzzing stocks?

After strong gains in the last few sessions, domestic equity indices took a breather on Wednesday, with the BSE Sensex settling 33.01 points, or 0.05 per cent, lower at 65,446.04. The NSE's Nifty added 9.50 points, or 0.05 per cent, to end the day at 19,398.50.

Select stocks such as Bharat Heavy Electricals (BHEL), Tata Motors and ABB India may see some action today. Here is what Laxmikant Shukla, Technical Research Analyst, YES Securities has to say on these three stocks ahead of Thursday's trading session:

Bharat Heavy Electricals | Buy | Target Price: Rs 110-115 | Stop Loss: Rs 85

BHEL traded in an ascending channel pattern on the weekly timeframe. A pullback from the lower end of the channel was strong, as the stock surpassed its previous month's high. BHEL stayed comfortably above all the significant moving averages on daily and weekly charts. The momentum indicator MACD was also in the bullish territory. One can buy the stock for targets of Rs 110 and Rs 115, respectively. Keep the stop loss at Rs 85 on a closing basis.

ABB India | Buy | Target Price: Rs 4,850 | Stop Loss: Rs 4,200
ABB India has seen a decent run in the ongoing financial year. However, the stock has started consolidating at its upper band in the recent weeks. On Wednesday, the stock found a base near its 20-DMA and formed a bullish candle on the daily chart, suggesting inherent strength. On technical parameters, major indicators have seen a positive crossover, adding to the bullish quotient. Based on the above evidence, one can buy the stock for a target of Rs 4,850. The stop loss can be placed at Rs 4,200.

Tata Motors | Hold | Resistance: Rs 602 | Support: Rs 570

Tata Motors struggled near its top after making a high of Rs 602. In the previous trading session, it formed a ‘Dark Cloud Cover’ candlestick pattern on the daily chart, exactly at the mentioned resistance zone. The Tata Motors stock has a strong support at Rs 570 level due to line of parity and 20-DMA. From the indicator perspective, daily MACD and RSI are trading in a positive territory, which is implying that the stock can hit a new high of Rs 640. Positive view stay intact as long as the stock holds above Rs 570.

(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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