IndiGo, Chola Finance, SRF: How to trade these 3 buzzing stocks

Indian benchmark indices extended their weakness for another trading session and settled in red on Tuesday. However, headline indices made a decent recovery from day's low bucking the volatility in the global markets. BSE Sensex shed 96.01 points, or 0.13 per cent, to end the session at 72,989.93. NSE's Nifty50 fell 36.65 points, or 0.17 per cent, to settle at 22,082.65 for the day.

Some buzzing stocks including Cholamandalam Investment and Finance Company Ltd (Chola Finance), InterGlobe Aviation Ltd (IndiGo) and SRF Ltd are likely to remain under the spotlight of traders for the session today. Here is what Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services has to say about these stocks ahead of Wednesday's trading session:

Cholamandalam Investment and Finance Company | Buy | Target Price: Rs 1,572 | Stop Loss: Rs 1,360

Prices of Chola Finance are displaying strong bullish momentum, trading above all key moving averages, including the 21-day, 55-day, and 100-day EMAs. The recent breakout above 1400 confirms an uptrend continuation, supported by rising volumes. The RSI at 63 suggests sustained strength without overbought conditions, while the MACD remains in positive territory, signaling bullish momentum. Price action reflects higher highs and higher lows, reinforcing the uptrend. Given the strong technical structure, we recommend a buy at current levels of Rs 1,445-1,450, with a target of Rs 1,572 and a stop-loss at Rs 1,360 for risk management.

InterGlobe Aviation | Buy | Target Price: Rs 4,938 | Stop Loss: Rs 4,350

Prices of IndiGo have witnessed a strong bullish momentum, currently attempting a breakout from a contracting wedge pattern. The growing volume on trendline breakout further confirms the mounting buying interest from technical traders. The Exponential Moving Averages are aligned bullishly, with the 21-day EMA above the 55-day EMA and 104-day EMA, suggesting sustained upward momentum. The RSI at 63.55 suggests sustained strength, while the MACD is in bullish crossover territory, indicating rising momentum. A sustained move above breakout point (Rs 4,510) will trigger further upside, with a potential target of Rs 4,938 in the near term.

SRF | Buy | Target Price: Rs 3,055 | Stop Loss: Rs 2,688

Prices of SRF managed to trade with bullish tendency despite broader sentiments of market is weak. Prices are forming higher highs on daily chart and every rise in prices has witnessed adequate gain in trading volumes, indicating growing buying interest from technical players. Prices are trading above key moving averages (21, 55, and 100 EMA). As long as prices are trading above their recent swing low (Rs 2,700), every fall in prices will be seen as an opportunity to build fresh long positions. The RSI at 59.65 remains in the bullish zone, suggesting room for upward movement, while the MACD is showing a positive crossover, reinforcing buying strength.