Indian equity markets started the week on a positive note, with both the BSE Sensex and NSE Nifty50 closing higher on Monday. Amidst this bullish sentiment, Jigar S Patel, Senior Technical Research Analyst at Anand Rathi Share and Stock Brokers Ltd, has highlighted three stocks for traders to watch: Tata Chemicals, Bharat Heavy Electricals Ltd (BHEL), and Aadhar Housing Finance Ltd, offering detailed technical analysis and trading levels.
Aadhar Housing Finance: Buy Recommendation
Aadhar Housing Finance has shown a significant bullish breakout above the Rs 485 level, indicating a strengthening price trend. A sustained daily close above this mark could propel the stock towards a target price of Rs 510 in the near term.
- Recommendation: Buy
- Target Price: Rs 510
- Stop Loss: Rs 480
The stock is currently trading above its 50-day Simple Moving Average (SMA), reinforcing its positive momentum. Additionally, the daily Relative Strength Index (RSI) has registered a breakout, further signaling a robust upward trajectory. The overall bias for Aadhar Housing Finance remains positive as long as it maintains above the Rs 480 support level.
Bharat Heavy Electricals (BHEL): Conditional Buy
BHEL is presently trading within a defined range, with immediate support at Rs 370 and resistance at Rs 400. A decisive breakout and a close above the Rs 400 level could ignite fresh buying interest, potentially pushing the stock towards targets of Rs 400-415.
- Recommendation: Conditional Buy (above Rs 400)
- Target Price: Rs 400-415
- Stop Loss: Rs 370
The weekly RSI for BHEL stands at 66, suggesting strong momentum and supporting a bullish outlook should the stock break its resistance. Traders are advised to consider new long positions only if the stock sustains above Rs 400, while Rs 370 remains a critical support level to monitor.
Tata Chemicals: Buy Recommendation
Tata Chemicals Ltd is trading above its 50-day SMA, indicating a positive short-term trend. The stock has immediate support near Rs 710, with Rs 763 identified as a crucial resistance level.
- Recommendation: Buy
- Target Price: Rs 763-800
- Stop Loss: Rs 710
A definitive breakout and sustained close above Rs 763 could trigger renewed buying interest, paving the way for an upward move towards Rs 800. As long as Tata Chemicals holds above Rs 710, the overall bias is expected to remain bullish, with traders closely watching the Rs 763 breakout point for further momentum.
Disclaimer: This article provides stock market news for informational purposes only and should not be considered investment advice. Readers are strongly encouraged to consult with a qualified financial advisor before making any investment decisions.