Tata Power, Here Moto, Grasim: Trading strategies for these buzzing stocks

Domestic stock indices settled flat on Wednesday, as investors awaited the outcome of the RB monetary policy due later in the day. The BSE Sensex shed 34.09 points, or 0.05 per cent, to end at 72,152. The NSE Nifty added 1.1 points, or 0.01 per cent, to 21,930.50. A few stocks namely Grasim Industries Ltd, Tata Power Co Ltd and Hero Motocorp Ltd are likely to remain under the traders’ radar. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

Grasim Industries | Buy | Resistance: Rs 2,300 | Support: Rs 2,000
Grasim has witnessed a gradual fall from Rs 2,182 level and showed dome signs of bottoming out now as it found support near Rs 2,060-2,070 zone. This is a strong support base, as seen from the past historical chart pattern on the daily chart. The RSI is about to give positive crossover and the stock has immense upside potential as the chart looks very attractive. A decisive move past Rs 2,125 level would suggest further upward move for the next target of Rs 2,300 in coming days. One can initiate a ‘Buy’ trade in the Rs 2,090-2,100 range with a stop loss of Rs 2,000 on the daily closing basis.

Tata Power Co | Caution | Resistance: Rs 415 | Support: Rs 380
Tata Power experienced a rapid ascent, surging from Rs 230 to a peak of Rs 402, aligning with the broader rally in the power sector. Although the trend has smoothly transitioned, it's essential to acknowledge the chances of a cooldown or correction following such a robust rally. In terms of support levels, the base has marginally shifted upwards, now residing at the Rs 380 level. Currently, the stock is facing a cluster of resistance in the higher range, ranging from Rs 405 to 415. Despite recent positive price action, the stock is anticipated to sustain its upward trajectory. However, caution is advised and investors should prudently manage profits by implementing strict trailing stop-loss measures.

Hero MotoCorp | Caution | Resistance: Rs 5,000 | Support: Rs 4,300
Hero MotoCorp has experienced a sharp surge, rallying from Rs 3,100 to a peak of Rs 4,817, largely driven by the bullish momentum in the auto sector. After such a significant uptrend, a period of consolidation or correction shouldn't be ruled out. The support level has slightly shifted upwards to around Rs 4,400-4,300 zone, while next resistance is near the psychological level of Rs 5,000. Despite the recent price movements suggesting a continuation of the upward trend, some cautio is advised, with profits being trailed using a strict trailing stop-loss strategy.

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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