SAIL, Apollo Hospital, Hindustan Aeronautics: How should you trade these stocks

Domestic stock indices settled higher on Wednesday, thanks to a smart recovery at the fag-end of the session. Select index heavyweights pushed the headline indices higher, with the BSE Sensex gaining 149.31 points, or 0.23 per cent, to 65,995.81. The NSE Nifty added 61.70 points, or 0.32 per cent, to settle at 19,632.55.

Select results-bound stocks such as Steel Authority of India (SAIL), Apollo Hospital Enterprises and Hindustan Aeronautics (HAL) are likely to be in the limelight today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

Steel Authority of India (SAIL) | Buy | Target Price: Rs 107 | Stop Loss: Rs 86
After correcting from a high of Rs 96, SAIL has found support around Rs 90 level. These are strong supports, as they also correspond to intermediate highs tested in the previous month. This price action indicates that a change of polarity principle is at work as prior resistances are now acting as supports. The stock has since rebounded and made a ‘Hammer’ pattern on the daily chart. With momentum readings like the 14-week RSI in rising mode on the weekly chart and the intermediate technical set up looking attractive, the stock has potential to move higher in coming weeks.

Apollo Hospital Enterprises | Sell (below Rs 4,950) | Target Price: Rs 4,550 | Stop Loss: Rs 5,150
Price action suggests that Apollo Hospital could be in for some severe decline in weeks to come. The stock has been trading below its 20- and 50-DMA on the daily scale. In the last two weeks, it dipped sharply. A failure of the stock to move above the previous major swing high means that it could see a decline towards Rs 4,950. If it breaks below Rs 4,950, it may further drop towards Rs 4,550-4,500 levels. Traders holding this stock may look to exit the counter on any short-term rally, as the medium-term outlook is bearish with a possibility of a substantial drop in coming days.

Hindustan Aeronautics | Range-bound | Resistance: Rs 3,900 | Support: Rs 3,700
Hindustan Aeronautics remained confined within the broader range of Rs 3,900 -3,700 for last six days. Occurrence of Doji candlestick patterns formed with prices enclosed within its 20- and 50-DMA indicates a range squeeze, which could see a breakout or breakdown from the range soon. A breakout above Rs 3,900 would lead prices on the upside towards Rs 4,100-level. A breach below Rs 3,700 could induce selling pressure towards Rs 3,500 on the downside.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today.)

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