Buy GRSE shares & sell Hudco stock; avoid Orient Cement for now, says YES Securities

Indian benchmark indices continued to settle lower on Wednesday as the conflicts between Iran and Israel in the Middle East continued to weigh on the markets ahead of the US FOMC meeting outcome. BSE Sensex fell 138.64 points, or 0.17 per cent, to settle at 81,444.66, while NSE's Nifty50 shed 41.35 points, or 0.17 per cent to close at 24,812.05 for the day.
 

Select buzzing stocks including Garden Reach Shipbuilders & Engineers Ltd (GRSE), Orient Cement Ltd and Housing & Urban Development Corporation Ltd (Hudco) are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Senior Technical Analyst at YES Securities has to say about these stocks ahead of Thursday's trading session:

Housing and Urban Development Corporation | Sell on rise | Target Price: Rs 210 | Stop Loss: Rs 242

HUDCO has experienced a sharp 13 per cent decline from its current month high, consistently trending downwards on the daily chart. It has given breakdown form its rising channel pattern, indicating a bearish trend; however, with the daily stochastic nearing oversold territory, a potential pullback is possible, therefore traders should consider a sell-on-rise strategy within the Rs 230-232 range, targeting downside levels of Rs 210, placing a stop-loss above Rs 242 to mitigate risk.

Orient Cement | Avoid | Resistance: Rs 270 | Support: Rs 245

Orient Cement has experienced a dramatic downturn on Wednesday, plummeting 18 per cent to close at Rs 250 amid exceptionally high trading volumes. This marks the stock's most severe intra-day decline in over five years, reminiscent of its 20 per cent plunge on March 23, 2020.  The recent fall has pushed the stock below its critical support level of Rs 283 indicating a significant shift towards a bearish sentiment.  Given this unfavorable technical setup, Orient Cement is presently considered a 'no-trade zone' for now. Investors are strongly advised to refrain from taking any positions until there is greater clarity and the stock exhibits clear signs of recovery.

Garden Reach Shipbuilders & Engineers | Buy | Target Price: Rs 3,615 | Stop Loss: Rs 2,880

Despite the recent downturn in the broader domestic markets, GRSE has demonstrated remarkable strength, marked by a falling channel breakout on its daily charts. This technical development signals a sustained uptrend and showcases the stock's resilience.  This pattern typically indicates a bullish reversal and a fresh upside momentum could be triggered if the stock surpasses its recent peak. The recent swing low formed on June 13, where a bullish engulfing candle appeared, has now transformed into a crucial support level. Consequently, any pullback towards the Rs 3,100-3,150 range could present a buying opportunity for investors seeking further gains.