IRCTC, Infosys, Tata Steel: Trading Strategies for these buzzing stocks

Benchmark indices are likely to see a flattish start on Wednesday, as the consolidation continues following the recent strong gains. According to the Fibonacci retracement, the next resistance for Nifty stands at 21,640-21,650, said anlaysts, who believe any short-term retracement will be seen as a buying opportunity. As far as stocks go, Infosys Ltd, Indian Railway Catering & Tourism Corporation Ltd (IRCTC) and Tata Steel Ltd are a couple of stocks that may see some action today. Below is what Pravesh Gour, senior technical analyst at Swastika Investmart Ltd said on the three stocks:-

Infosys | Target Rs 1,650

The stock has experienced a breakout from a double bottom formation on the daily chart, accompanied by a strong volume surge. Additionally, it has broken out of a Triangle formation, enhancing its attractiveness for short -term traders. The chart pattern indicates a near-term target of Rs 1,650, with the potential for a substantial move towards Rs 1,700 and beyond in the shorter time frame. On the downside, the Rs 1,490 level serves as a crucial demand zone, providing support in the event of any correction.

IRCTC | Key resistance to watch | Rs 925

The IRCTC counter has witnessed a breakout of the Cup and Handle formation and double bottom formation on the weekly chart with strong volumes. The structure on the counter looks good for traders, as it stock is trading above its important moving averages of 50-, 100- and 200-DMAs. On the higher side, the stock is facing trend-line resistance at around Rs 925 level. Above this, one can expect a big rally towards the Rs 1,000 level. On the lower side, the Rs 840 level may act as an important support at any correction in the market. The momentum indicator RSI (relative strength index) is also positively poised, whereas MACD (moving average convergence divergence) is supporting the current strength.

Also read: IRCTC shares rise 14%, hit 52-week high amid record turnover

Tata Steel | Target: Rs 145

Tata Steel is in a classical uptrend with a breakout of Flag formation with strong volumes. The stock is making higher high-low formations on the daily chart. The overall structure is bullish, as the scrip trades above its key moving averages. One can take a position on the counter at around Rs 135.40, as the stock has created a strong base around Rs 128 (20-DMA). One can look at the target of Rs 145.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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