Tata Steel, TVS Motor, GAIL: Trading strategy for these buzzing blue-chip stocks

Domestic stock indices settled with healthy gains on Friday, thanks to optimistic global cues. The BSE Sensex soared 555.76 points, or 0.86 per cent, to close at 65,387.16. The NSE Nifty surged 181.50 points, or 0.94 per cent, to settle at 19,435.30. Select stocks namely TVS Motors Company, Tata Steel and GAIL (India) are likely to remain be 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:

TVS Motor Company | Buy | Target Price: Rs 1,530-1,560 | Stop Loss: Rs 1,400
TVS Motor is making a higher-top, higher-bottom formation on the daily chart, a sign of strength. The stock is outperforming the benchmark indices. The momentum indicators viz. RSI and MACD are positively poised, suggesting that upside momentum will likely to continue. One can buy the stock at current prices with a stop loss of Rs 1,400 for targets of Rs 1,530-1,560 levels in the next couple of weeks.

Tata Steel | Buy | Target Price: Rs 147-166 | Stop Loss: Rs 116
Tata Steel saw a rounding base formation on the daily chart. It also made a strong bull candle with high volumes, suggesting the momentum on the upside is likely to continue. The stock is outperforming the benchmark indices -- it has higher relative strength. Even the momentum indicator MACD is positively poised. Hence, one can buy the stock at current levels with a stop loss of Rs 116 for targets of Rs 147-166 levels in the next couple of months.

GAIL | Buy | Target Price: Rs 143-149 | Stop Loss: Rs 115
GAIL saw a breakout above the Rs 119 level on the daily chart, with good volumes. It closed at the Rs 121 level-even the momentum indicator MACD is positively poised. The stock has higher relative strength and is outperforming the benchmark indices. Combining all these parameters, it is evident that momentum on the upside is likely to continue. One can buy the stock at current price with a stop loss of Rs 115 for targets of Rs 143-149 levels in the next couple of weeks.


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