Buy NTPC stock, book profit in BEL & stay cautious on HDFC Bank shares, suggests Anand Rathi

Indian benchmark indices kicked-off the week on a higher note on Monday and settled with big gains, despite rising volatility and tensions in the Middle East. Traders shall be awaiting for the near-term triggers for the move of the markets. BSE Sensex rallied 677.55 points, or 0.84 per cent, to settle at 81,796.15, while NSE's Nifty50 soared 227.90 points, or 0.92 per cent to close at 24,946.50 for the day.

Select buzzing stocks including Bharat Electronics Ltd (BEL), HDFC Bank Ltd and NTPC Ltd are likely to remain under the spotlight of traders for the session today. Here is what Jigar S Patel, Technical Research Analyst at Anand Rathi Shares & Stock Brokers has to say about these stocks ahead of Tuesday's trading session:

HDFC Bank | Buy | Resistance: Rs 1,940 | Support: Rs 1,915

HDFC Bank recently found support in the Rs 1,915–1,920 zone, which coincides with the S3 Camarilla monthly pivot, indicating a potential reversal area. Additionally, a bullish divergence is visible on the hourly chart, suggesting early signs of a rebound. A daily close above Rs 1,940 would confirm upside momentum, opening the path towards Rs 1,970 in the near term. For now, immediate support lies at Rs 1,915, while resistance is placed at Rs 1,940. Traders are advised to wait for a confirmed close above Rs 1,940 before initiating fresh long positions, as it would validate strength and improve the risk-reward outlook.

Bharat Electronics | Book Profits

Bharat Electronics (BEL) has delivered an impressive rally of 148 points, translating into a strong 57 per cent gain over the past two months, making it an attractive performer. However, the current price action is approaching a significant resistance zone near Rs 410, which also aligns with the R3 level of the monthly Camarilla pivots. This confluence of technical resistance suggests limited upside from current levels. Therefore, it is advisable to book profits near the Rs 410 mark and avoid initiating fresh long positions at this stage. Waiting for further price confirmation or a breakout above Rs 410 would offer a better risk-reward setup.

NTPC | Buy | Target Price: Rs 350 | Stop Loss: Rs 322

NTPC has found support near the Rs 325 level, which aligns with its previous breakout zone and the S3 monthly Camarilla pivot, indicating a strong demand area. Additionally, a bullish divergence is observed on the hourly chart, suggesting a possible reversal. Given these technical signals, a buying opportunity emerges in the Rs 330–335 range. We recommend going long in this zone with a target of Rs 350. To manage risk effectively, a stop-loss should be placed at Rs 322 on a daily closing basis. This setup offers a favourable risk-reward ratio, supported by key support levels and momentum indicators.