SAIL, Grasim, HAL: Trading strategies for these buzzing largecap stocks

Dalal Street welcomed Samvat 2080 on strong note during the one-hour special Muhurat trading session. On the festive eve, the bulls pushed the BSE Sensex 355 points, or 0.55 per cent higher, to 65,259.45. The NSE Nifty gained 100.20 points, or 0.52 per cent, to close at 19,525.55. On Friday, benchmark indices had posted mild gains.

A few stocks namely Hindustan Aeronautics Ltd, Steel Authority of India Ltd (SAIL) and Grasim Industries Ltd are likely to remain under the spotlight today. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

Hindustan Aeronautics | Buy | Target Price: Rs 2,308-2,430 | Stop Loss: Rs 1,930
Hindustan Aeronautics is making a rounding base formation on the daily chart, which is a positive sign. Further, the stock is outperforming the benchmark indices. Even the momentum indicator, viz. MACD is positively poised. Hence, one can buy the stock at current levels with a stop loss of Rs 1,930 for a target Rs 2,308- Rs 2,430 levels in the couple of weeks.

Steel Authority of India | Buy | Target Price: Rs 96-100 | Stop Loss: Rs 84
SAIL is forming a higher top-bottom formation on the daily chart. The stock has started trading marginally above its 200-day SMA of Rs 87. Even the momentum indicator, viz. RSI is poised, suggesting that momentum on the upside will likely continue. Hence, one can buy the stock at current levels with a stop loss of Rs 84 for a target of Rs 96 – Rs 100 levels in the next couple of weeks.

Grasim Industries | Buy | Target Price: Rs 2,035-2080 Stop Loss: Rs 1,900
Grasim is forming a rounding base formation, a sign of accumulation on the daily chart. Further, momentum indicator viz. MACD is positively poised and even the stock is outperforming the benchmark indices. Combining the above parameters, it is evident that momentum on the upside may continue. Hence, one can buy the stock at current levels, a stop loss of Rs 1,900 for a target of Rs 2,035– Rs 2,080 levels in the next couple of months.


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