L&T, Hindustan Petroleum, GSFC: Trading strategies for these buzzing stocks

Domestic stock indices on Monday extended rally for the second straight session on easing geopolitical tensions. The BSE Sensex jumped 560.29 points, or 0.77 per cent, to settle at 73,648.62. NSE's Nifty50 advanced 189.40 points, or 0.86 per cent, to end the session at 22,336.40.

A few stocks, namely Larsen & Toubro Ltd (L&T), Hindustan Petroleum Corporation Ltd (HPCL) and Gujarat State Fertilizers & Chemicals Ltd (GSFC) are likely to be on trader radar today. Here is what various analysts from different brokerage firms have to say on these stocks ahead of Tuesday's trading session:

Larsen & Toubro | Buy | Target Price: Rs 4,120 | Stop Loss: Rs 3,500
Larsen & Toubro (L&T) witnessed a short correction and found support near Rs 3,470 level, making a double bottom formation on the daily chart. The stock indicated a pullback and improved the bias by moving past the significant 50-EMA level of Rs 3,590. The RSI has corrected quite significantly and is currently well-placed, indicating a trend reversal. The chart looks appealing with a potential to carry on the momentum. The risk-reward looks favourable. One can buy the stock for an upside target of Rs 4,120, keeping the stop loss near Rs 3,400 level.
Recommended by: Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher

Hindustan Petroleum Corporation | Buy | Target Price: Rs 550 | Stop Loss: Rs 457
At the fag-end of 2023, a phenomenal rally started in OMC stocks. During the process, Hindustan Petroleum rallied from Rs 240 to Rs 590, before seeing a corrective move. The stock turned after retracing 38.2 per cent of the entire rally along with a double bottom formation. Traders can buy the stock in the range of Rs 490-485 with a stop loss of Rs 457 for an upside target of Rs 550.
Recommended by: Anand Rathi Share and Stock Brokers

Gujarat State Fertilizers & Chemicals | Buy | Target Price: Rs 280 | Stop Loss: Rs 215
GSFC formed a higher-bottom formation pattern, taking support near Rs 216 level after a brief correction. The stock gradually picked up the momentum with a positive candle formation, improving the bias. The stock has moved above the significant 50-EMA levels at Rs 227 to further improve the trend. The RSI is also well-placed and is on the rise with potential to carry on the momentum still further upside. One can buy the stock for an upside target of Rs 280, keeping the stop loss near Rs 215-level.

Recommended by: Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher