Divis Labs, GMR Infra, Hudco, Jindal Saw: Trading Strategies for these buzzing stocks

Domestic stock indices settled lower on Tuesday, led by a fag-end selling pressure. The BSE Sensex dropped 188.50 points, or 0.25 per cent, to settle at 74,482.78. The NSE Nifty shed 38.55 points, or 0.17 per cent, to end the session at 22,604.85.

A few stocks such as Divis Laboratories Ltd, Jindal Saw Ltd, GMR Airports Infrastructure (GMR Infra) and Housing & Urban Development Corporation (Hudco) are likely to remain under traders’ spotlight. Here is what analysts from Axis Securities have to say on these stocks ahead of Thursday's trading session:

Divis Laboratories | Buy | Target Price: 4,320-4,450 | Stop Loss: Rs 3,780
Divis Labs demonstrated a breakout above the 'Inverted Head & Shoulders' pattern at Rs 4,000 on the weekly chart, suggesting the onset of an uptrend. The stock closed above the weekly upper Bollinger Band, generating a medium-term ‘buy’ signal. Besides, the stock is holding above its key moving averages of 20-, 50-, 100-, and 200-day, indicating an uptrend in both short and medium terms. The weekly strength indicator RSI is holding above its reference line, indicating a positive bias. The analysis indicates an upside towards Rs 4,320-4,450 levels.

Housing & Urban Development Corporation | Buy | Target Price: 4,320-4,450 | Stop Loss: Rs 204
HUDCO has broken above its consolidation zone of Rs 220- 165 on the weekly chart, signaling a continuation of the medium-term uptrend. The stock has found support above the 38 per cent Fibonacci retracement level of the rally from Rs 70 to Rs 226, at Rs 165, establishing a medium-term base that may support further upward movement. Additionally, the stock is forming higher high-lows on the weekly chart while also maintaining above an upward sloping trendline, indicating an upward bias. The weekly strength indicator RSI has given a crossover above its reference line, generating a ‘buy’ signal. The analysis indicates an upside towards Rs 252-265 levels.
 
GMR Airports Infrastructure | Buy | Target Price: Rs 98-103 | Stop Loss: Rs 85
GMR Infra has broken out above the 'Descending Triangle' pattern at Rs 87 with a strong bullish candle on the weekly charts, signaling the continuation of the uptrend. During the pattern formation, volume activity tends to decline, while at the breakout, there is an increase in activity, indicating an influx of market participation. Currently, the stock is trending within a medium-term rising channel, finding support at the lower band of the channel. It is now moving towards the upper band. The weekly strength indicator RSI has given a crossover above its reference line, generating a ‘buy’ signal. The above analysis indicates an upside towards Rs 98-103 levels.

Jindal Saw | Buy | Target Price: 609-625 | Stop Loss: Rs 513
Jindal Saw has broken above its consolidation zone of Rs 560-400 with a strong bullish candle on the weekly chart, signaling the continuation of the uptrend. Volume activity increased at the breakout, indicating an influx of market participation. Additionally, the stock is forming higher high-lows while holding above the medium-term uptrend, indicating a positive bias. The weekly strength indicator RSI has given a crossover above its reference line, generated a ‘buy’ signal. The above analysis indicates an upside towards Rs 609-625 levels.
 

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