Buy Waaree Energies stock, hold BHEL & Suzlon shares, suggests Arihant Capital

Indian benchmark indices settled with big gains on Friday amid bucking the Middle East concerns led by corrections in crude oil prices, supportive domestic markets and positive overseas inflows. BSE Sensex zoomed 1,046.30 points, or 1.29 per cent, to settle at 82,408.17, while NSE's Nifty50 soared 319.15 points, or 1.29 per cent to close at 25,112.40 for the day.

Select buzzing stocks including Bharat Heavy Electrical Ltd (BHEL), Suzlon Energy Ltd and Waaree Energies Ltd are likely to remain under the spotlight of traders for the session today. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say about these stocks ahead of Monday's trading session:

Suzlon Energy | Hold | Target Price: Rs 70-74 | Stop Loss: Rs 58

Suzlon Energy is witnessing a retracement of the prior up move from Rs 50 to Rs 73. Currently, it is underperforming the benchmark indices. However, the RSI remains positively poised, suggesting that the upward momentum may resume in the near term. Hence, investors are advised to hold the stock at the current market price, with a stop loss at Rs 58. The anticipated upside target is projected in the range of Rs 70-74 over the next couple of weeks.

Waaree Energies | Buy | Target Price: Rs 3,600-3,900 | Stop Loss: Rs 2,719

Waaree Energies has shown a strong rebound from the 50-day SMA at Rs 2,720 on the daily charts, forming a bullish candlestick pattern accompanied by high volumes. Additionally, the momentum indicator RSI is positively poised, further supporting the bullish outlook. The combination of positive price action and rising volume indicates the potential for sustained upward momentum. Based on this setup, investors may consider entering a buy position at the current market price, with a stop loss placed at Rs 2,719. The stock is expected to move towards the target range of Rs 3600-3,900 over the next couple of months.

Bharat Heavy Electricals | Hold | Target Price: Rs 272-283 | Stop Loss: Rs 239

BHEL is forming a higher high pattern, indicating a continuation of the broader uptrend on the daily charts. Currently, it is undergoing a retracement of the previous up move and is approaching a strong support zone in the Rs 245–241 range. While the stock is presently underperforming the benchmark indices, the RSI remains positively poised, suggesting that it may find support at the mentioned levels and resume its upward momentum. In view of the above, investors may consider initiating a hold position at the current market price, placing a stop loss at Rs 239. The stock has the potential to move towards the target range of Rs 272–283 in the coming couple of weeks.