Tata Steel, HDFC Bank, Asian Paints: Trading strategies for these buzzing blue-chip stocks

Domestic stock indices settled lower on Monday on profit booking, ahead of inflation prints in the US and Europe. The BSE Sensex tanked 352.67 points, or 0.48 per cent, to 72,790.13. The NSE Nifty index shed 90.65 points, or 0.41 per cent, to end at 22,122.05.

A few stocks namely Tata Steel Ltd, HDFC Bank Ltd and Asian Paints Ltd my stay under the spotlight of traders. Here is what Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher has to say on these stocks ahead of Tuesday's trading session:

HDFC Bank | Buy | Target Price: Rs 1,480-1,580 | Stop Loss: Rs 1,360
HDFC Bank has been hovering near Rs 1,400 level. The Rs 1,360 level is a long-term trendline zone that is acting as a strong support. One can accumulate the stock with a near-term target of Rs 1,480-1,500 (50-EMA) level. If the strength sustains, one can anticipate the stock to rise further till next targets of Rs 1,580 (200-period MA) level.

Asian Paints | Hold | Resistance: Rs 2,930 | Support: Rs 2,770
Asian Paints has fallen below the crucial support of Rs 2,900, which was the long-term trendline support zone and had weekend the bias to some extent. From the prevailing level, it needs to move past the Rs 2,930 level decisively for the bias to improve. The next near-term support would be around Rs 2,770 level.

Tata Steel | Buy | Resistance: Rs 158-172 | Support: Rs 130
Tata Steel has witnessed a resistance near the Rs 147 level, where a double top formation pattern is visible on the daily chart. Post the recent profit booking, the stock has near-term support at 50-EMA level of Rs 137, where it can find stability. A decisive breach above Rs 147 level can confirm a breakout and one could expect next targets of Rs 158 and Rs 172 levels, respectively. At the same time, a decisive breach below the important 100-DMA of Rs 130 should weaken the overall trend and negate this view.
 

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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