Bajaj Auto, IndiGo, Zee: Trading strategies for stocks in news on Tuesday

Zee Entertainment is seen trading below its key moving averages on the daily scale following today's sharp intra-day fall of over 13 per cent, shows chart.

Benchmark equity indices bounced back strongly in intra-day deals on Tuesday taking cues from a strong show by global peers. Similarly, a large number of stocks were seen buzzing in trade on the back of active news flow at the counter.

Prominent among these were - Bajaj Auto which announced a share buyback worth Rs 4,000 crore, and Tata Motors which reported healthy sales by its UK arm Jaguar Land Rover.

Similarly, InterGlobe Aviation the parent company of IndiGo has hiked airfare tickets by up to Rs 2,000 on preferred seating choice for its passengers. That apart, Fino Payments Bank is seeing some action as it applied for a small finance bank licence with the RBI.

Meanwhile, here's a quick chart check on the stocks in news today.

Bajaj Auto

Current Price: Rs 7,150

Pivot Point: Rs 7,130

Supports: Rs 6,830; Rs 6,660

Shares of Bajaj Auto hit a fresh life-time high at Rs 7,399 on the NSE after the company's board approved Rs 4,000-crore share buyback at Rs 10,000 apiece. In the process, the company's market capitalisation (market cap) hit the Rs 2-trillion-mark for the first time ever. READ MORE

The long-term chart of Bajaj Auto indicates that the trend is likely to remain favourable as long as the stock holds above Rs 6,660. In the near-term, the Rs 7,130 level seems to be a key pivot, as sustained trade below the same could push the stock towards it support levels at Rs 6,830 and Rs 6,660.

On the positive front, sustained trade above Rs 7,130 can help the stock extend its up move in the region of Rs 7,500 - Rs 7,700 in the near term. CLICK HERE FOR THE CHART

Tata Motors

Current Price: Rs 800

Support zone: Rs 775 - Rs 785

Tata Motors has been consolidating in the recent trading sessions, and the stock seems to be in the process of forming a higher support base between Rs 775 - Rs 785 levels. 

In the very near-term, the stock has near support at Rs 796 and on the upside it can spurt to Rs 820 levels. The long-term chart suggests that the bias is likely to remain favourable as long as Tata Motors holds above Rs 788 on a monthly closing basis. CLICK HERE FOR THE CHART

InterGlobe Aviation (IndiGo)

Current Price: Rs 3,034

Resistance: Rs 3,035

Shares of IndiGo have climbed steadily while taking support around its 20-DMA (Daily Moving Average) for almost three weeks. The stock is now testing the higher-end of the anticipated trading band at Rs 3,035. Break and sustained trade above the same can help the stock extend its up move by another 5-6 per cent. CLICK HERE FOR THE CHART

Fino Payments Bank

Current Price: Rs 301

Support: Rs 292

Upside Targets: Rs 325; Rs 350

After more than two months, thanks to the sharp gains in recent trading sessions, Fino Payments Bank is seen testing resistance at its 100-DMA, which stands at Rs 304. The bias for the stock is likely to remain favourable as long as the stock holds above Rs 292.

Select momentum oscillators, both on the weekly and monthly charts, too have turned favourable; hence the stock could witness further upside in the coming period. On the upside, the stock is likely to rally to Rs 325, above which the next target would be Rs 350. CLICK HERE FOR THE CHART

Zee Entertainment

Current Price: Rs 250
Support: Rs 240
Resistance: Rs 265; Rs 275

Zee Entertainment has been on a roller-coaster ride amid the on-and-off news flow around the Sony India merger. With today's over 13 per cent fall, the stock is now seen trading below its key moving averages on the daily chart. 

Having said, the stock however so far has managed to hold the 100-WMA (weekly Moving Average) support at Rs 240. As long as the stock manages to hold this support, it may attempt to claw back its way on the daily scale.

On its way up, the stock is expected to counter stiff resistance at Rs 265, wherein the 50- and 100-DMAs coincide, above which the 20-DMA at Rs 275 will act as another hurdle.

On the flip side, the weekly chart suggests that break and trade below Rs 240, could lead the stock towards its super trend line support at Rs 215-odd levels. CLICK HERE FOR THE CHART