Technical Breakout Stocks: How to trade Ajanta Pharma, BHEL and Hindustan Zinc on Monday?

Indian market witnessed profit-taking on Friday tracking muted global cues. The S&P BSE Sensex plunged more than 700 points while the Nifty50 closed below 22,500 levels.

Indian market witnessed profit-taking on Friday tracking muted global cues. The S&P BSE Sensex plunged more than 700 points while the Nifty50 closed below 22,500 levels.

Sectorally, buying was seen in metals, healthcare, and public sector while selling was seen in realty, capital goods and telecom indices which were down more than 1% each.

Stocks that were in focus include names like which was up more than 6%, closed with gains of more than 4% and closed with gains of more than 9% on Friday.

Analyst: Mitesh Karwa, Research Analyst at Bonanza Portfolio

Ajanta Pharma: Buy| Target Rs 2700| Stop Loss Rs 2250
Ajanta Pharma is seen to be opening with a big gap-up and breaking a resistance zone on the daily timeframe with above-average volumes and making a new all-time high on the daily timeframe which confirms the bullish view.

Buying can be initiated in Ajanta Pharma stock at current levels of around 2380-2383 with stoploss of 2250 and targets of 2700.

BHEL: Book partial profits
BHEL LTD is seen to be achieving its technical target on the monthly timeframe and RSI is seen to be in an overbought zone which is why buying is not recommended at current levels.

Partial profit booking of current holding can be done at current levels as the stock might correct in the short term, although the longer-term trend is still sideways to bullish.

Hindustan Zinc: Buy| Target Rs 540| Stop Loss Rs 370
Hindustan Zinc is seen to be breaking out of a bullish cup and handle-like formation on the monthly timeframe with a bullish candlestick and above-average volumes.

Buying can be done on dips of 420-430 with a stop loss below 370 and targets of 540.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Source: Stocks-Markets-Economic Times