HCL Tech, Axis Bank, Bank of Baroda: Trading strategies for these buzzing largecap stocks

Domestic stock indices managed to post gains, thanks to the swift recovery seen in the second half of the session. Buying in the banking and IT and FMCG counters pushed the headline indices higher. The BSE Sensex rallied 408.86 points, or 0.55 per cent, to settle at 74,085.99. This was the first time when the BSE barometer settled above the 74,000 mark. The NSE Nifty jumped 117.25 points, or 0.53 per cent, to end the session 22,474.05.

A few stocks namely Axis Bank Ltd, Bank of Baroda Ltd (BoB) and HCL Technologies Ltd, are likely to remain in focus today. Here is what analysts at Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

Axis Bank | Buy | Target Price: Rs 1,240 | Stop Loss: Rs 1,075
Axis Bank has demonstrated a noteworthy breakthrough, surpassing the prior swing high, accompanied by considerable trading volumes, which hinted at a sustained momentum in the ongoing trend. The momentum indicator RSI further reinforces the bullish sentiment by consistently staying near the critical level of 60. The stock has established a robust foundation at the lower end, approximately at Rs 1,080. This level is expected to serve as a support, acting as a safeguard against any potential downward movement.

Bank of Baroda | Buy | Target Price: Rs 305 | Stop Loss: Rs 270
Bank of Baroda (BoB) has demonstrated a remarkable surge, as it moved past its previous weekly high near the Rs 280-mark. This upward trajectory was characterised by a V-shaped recovery, underscored by significant trading volumes. Any correction on the counter has been met with strong buying interest, particularly around the 20-day SMA, which is a solid support level. Therefore, it is advisable to consider entering positions in the range of Rs 280-282, setting a stop-loss at Rs 270 to mitigate risk while targeting a potential rise to Rs 305, capitalising on the stock's bullish momentum.

HCL Technologies | Buy | Target Price: Rs 1,765 | Stop Loss: Rs 1,600
For HCL Tech, the emergence of a Bullish Engulfing pattern on the weekly chart suggests a potential trend reversal. To confirm this bullish sentiment, it is crucial for the stock to surpass the upcoming resistance level at Rs 1,655. Once this resistance is overcome, there is a likelihood that the stock could reach the level of Rs 1,765 in the coming weeks. Given the bullish outlook, one can initiate buy, accompanied by a strategically placed stop-loss at Rs 1,600.


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