Bajaj Finance, SBI, Inox Green: Trading strategies for stocks in news

Among the stocks in focus on Monday, Shree Renuka Sugars looks strong on charts, while Inox Green Energy seems weak.

Among individual stocks, Bajaj Finance, Dixon Technologies, Inox Green Energy, SBI and Shree Renuka Sugars are likely to be in focus owing to the current news flow at these counters.

While SBI has raised Rs 10,000 crore through infra bonds, Bajaj Finance board will meet on October 05 to consider QIP issue. Inox Green Energy and Shree Renuka are on a acquisition drive, while uncertainty with regards to the laptops, PCs import licensing decision by the government have kept traders active at the Dixon Technologies counter.

Given this background, here are the key support and resistance levels for these five stocks on the charts.

Bajaj Finance

Outlook: Positive

Support: Rs 7,380; Rs 7,300

Resistance: Rs 7,730

In spite of the recent market fall, the stock has managed to hold its positive stance on price-to-moving averages basis. The stock continues to trade above its 20-DMA (Daily Moving Average) which presently stands at Rs 7,380, below which the immediate support for the stock is seen at Rs 7,300 - its 50-DMA. 

On the upside, the stock needs to conquer its hurdle at Rs 7,735, above which the stock may look to spurt to Rs 7,920-odd levels. CLICK HERE FOR THE CHART

Dixon Technologies

Outlook: Neutral

Support: Rs 4,750; Rs 4,665

Resistance: Rs 4,960

The stock has seen a steady fall of 7 per cent in the last eight trading sessions, and closed below its 20-DMA for four consecutive trading sessions. However, the stock seems to be taking support around the lower-end of the Bollinger Bands on the daily chart at Rs 4,750-odd levels, below which immediate support for the stock is seen at Rs 4,665.

with select momentum oscillators in oversold zone, a pullback from current level seems likely. On the upside, the stock may test resistance around its 20-DMA at Rs 4,960, above which it can spurt to Rs 5,165. CLICK HERE FOR THE CHART

Inox Green Energy

Outlook: Negative

Support: Rs 64.10

Resistance: Rs 67.40 - Rs 67.50

The short-term trend for the stock has just turned negative today, with its 20-DMA at Rs 67.40 slipping below its 50-DMA at Rs 67.50. On the downside, the stock has near support at Rs 64.10, below which a steep fall to Rs 60 seems likely.

On the upside, the stock needs to break and sustain above its short-term moving averages on a consistent basis, in order to reverse the negative bias. CLICK HERE FOR THE CHART

SBI

Outlook: Range-bound

Support: Rs 580

Resistance: Rs 614

Shares of SBI are seen consolidating in a trading range - between its 20-WMA (Weekly Moving Average) and the higher-end of the Bollinger Bands on the weekly chart since late April, with dips towards its 50-WMA on rare occasions.

Present chart structure, indicates a likely trading band of Rs 580 - Rs 614, with a possibility of a dip towards Rs 567. A breakout in either direction could trigger a 7 per cent move, indicating an upside target of Rs 657, and downside up to Rs 525. CLICK HERE FOR THE CHART

Shree Renuka Sugars

Outlook: Bullish

Support: Rs 55

Target: Rs 62

Shree Renuka Sugars had given a breakout on the weekly chart earlier this month, and since rallied nearly 11 per cent. The weekly chart suggests that the bias is likely to favour the bulls as long as the stock sustains above Rs 55-level. on the upside the stock can potentially rally another 13 per cent to Rs 62-odd levels.

Conversely, failure to sustain above the Rs 55-level, could trigger a price correction towards Rs 49.75-odd levels. CLICK HERE FOR THE CHART