HDFC Life, HEG, Cochin Shipyard: Trading strategies for these buzzing stocks

Indian benchmark indices settled sharply lower on Tuesday on the back of weak global and domestic cues. Traders are awaiting US Fed's policy due later in the day. The BSE Sensex dropped more than 736.37 points, or 1.01 per cent, to 72,012.05, while NSE's Nifty50 tumbled 238.25 points, or 1.08 per cent, to 21,817.45 for the day.

Some buzzing stocks namely HEG Ltd, Cochin Shipyard Ltd and HDFC Life Insurance Company Ltd are likely to remain under the spotlight of traders for the session today. Here is what analysts at Axis Securities have to say on these stocks ahead of Wednesday's trading session:

HEG | Buy Range: Rs 1,870-1,834 | Target Price: Rs 2,160-2,220 | Stop Loss: Rs 1,700
HEG demonstrates a bullish breakout above the 'falling channel' pattern at Rs 1,850 on the weekly chart, signaling a positive bias. Volume activity diminished during the pattern formation and surged at the breakout, signaling heightened market participation during the breakout phase. The stock closing above the daily upper Bollinger band signifies a buy signal for the short term as well. The weekly strength indicator RSI has given a crossover above its reference line, generating a buy signal. The above analysis indicates an upside potential of Rs 2,160-2,220 levels.

Cochin Shipyard | Buy Range: Rs 880-864 | Target Price: Rs 2,160-2,220 | Stop Loss: Rs 785
Cochin Shipyard has broken out of a 'falling channel' pattern, marked by a strong bullish candle at Rs 880, on the daily charts, suggesting a reversal following profit booking. The stock continues its upward momentum after the breakout and is expected to sustain its momentum. It maintains support above the 61.8 per cent Fibonacci retracement level of the rally from Rs 600-945 at Rs 733, forming a short-term base for further potential upward movement. The daily strength indicator RSI has given a crossover above its reference line, generating a buy signal. The above analysis indicates an upside potential of Rs 1,045-1,085 levels.

HDFC Life Insurance | Buy Range: Rs 625 | Target Price: Rs 665-685| Stop Loss: Rs 597
HDFC Life has broken out of a consolidation phase, marked by a 'Rounded Bottom' pattern at the Rs 629 level, indicating a positive bias on the daily charts. Heightened volume activity during the breakout indicates increased participation, reflecting substantial interest in the stock's upward momentum. The stock is maintaining its position above the 20, 50, 100, and 200 simple moving averages (SMA), indicating a positive bias in its price trend. The daily Relative Strength Index (RSI) is in bullish mode and holding above its reference line, suggesting a positive bias in the stock. The above analysis indicates an upside potential of Rs 665-685 levels.

 

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