Vedanta, Tata Steel, Navin Fluorine: Trading strategies for these buzzing stocks

Weak global cues dragged domestic benchmark indices lower on Tuesday. A rise in dollar and treasury yields dented sentiment as the BSE barometer Sensex fell 316.31 points, or 0.48 per cent, to settle at 65,512.10. NSE's Nifty50 declined 109.55 points, or 0.56 per cent, to end at 19,528.75.
A few stocks namely Tata Steel, Vedanta and Navin Fluorine International could be in focus today. Here is what Pravesh Gour, Senior Technical Analyst at Swastika Investmart to say on these stocks ahead of Wednesday trading session:

Navin Fluorine International | Cautious | Resistance: Rs 3,670 | Support: Rs 3,270
Navin Fluorine has witnessed a breakdown of a head and shoulders pattern with strong volumes. Its weekly chart has given a breakdown of a channel formation. The structure is distorted on the counter as it is trading below its important moving averages. Both MACD and the momentum indicator RSI are also negatively poised. On the downside, Rs 3,670 is the critical support. Below this, one can expect a major fall towards Rs 3,270. On the upside, Rs 4,000 is a major hurdle.

Vedanta | Cautious | Resistance: Rs 240-250 | Support: Rs 210
Vedanta, which is in a downward trend, saw an astute recovery from Rs 210–214 zone in the last few trading sessions with strong volumes. The range had a multi-year support for the counter. While he overall structure is distorted with the stock trading below its key moving averages, it has a demand zone near Rs 210–214. On the upside, Rs 240 is an immediate susceptible area; above this, one can expect a run-up towards Rs 250 level in the near term. The level of Rs 210 is an immediate demand level.

Tata Steel | Hold | Target Price: Rs 142 | Stop Loss: Rs 123
Tata Steel witnessed a breakout of a triangle formation on the daily chart. It retested its previous breakout and started a new leg of rally towards Rs 135 level. The overall structure looks good for short term trade, as it is trading above its key moving averages. On the higher side, Rs 135 is the susceptible level; above this, Rs 142 is the near-term target for the counter. Place a stop-loss at Rs 123.


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