Bandhan Bank, Bajaj Auto, PVR: Trading strategies for news-driven stocks

Rising channel patterns, stability above 200-DMA are some of the indicators that suggest further upside.

Benchmark indices, S&P BSE Sensex and Nifty50, were trading flat in the intra-day session on Tuesday; however, a number of stocks were trading actively in the trade, owing to their respective business and corporate developments. For instance, Bajaj Finance rallied 4 per cent post its quarterly update while Bandhan Bank advanced over 5 per cent after the lender reported healthy loan and deposit growth in the April-June quarter on a yearly basis despite a nationwide Covid-19-induced lockdown. 

Bajaj Auto, on the other hand, traded over 1 per cent lower after it announced a 50 per cent pay cut for its staff at Waluj plant in Aurangabad. 

Below is a look at how these stocks look on charts and what should be your trading strategies -

Bajaj Finance Ltd (BAJFINANCE): The counter has managed to cross 100-day moving average (DMA) located at Rs 2,915 level and is heading towards Rs 3,500, which is its 200-DMA. The trend remains bullish as the price is rising gradually with Moving Average Convergence Divergence (MACD) moving upward. The support remains at Rs 2,920 levels. CLICK HERE FOR THE CHART

Bajaj Auto Ltd (BAJAJ-AUTO): With a stable “Rising channel pattern”, the overall outlook indicates a strong bullishness. It trades above 200-DMA, along with a positive crossover of 50-DMA and 100-DMA. This scenario suggests strong upside towards Rs 3,120 levels. The support remains at Rs 2,815 levels. CLICK HERE FOR THE CHART

PVR Ltd (PVR): The counter has stabilised above 50-DMA, however potential strength and positivity has not been seen. Although, the current price trades above the average, the volumes have not been satisfactory. The counter remains in no trade zone with mild bullishness. It needs to scale Rs 1,100 with a large body candle to regain the losing momentum. The support remains at Rs 1,000 levels. CLICK HERE FOR THE CHART

Punjab National Bank (PNB): The current trend remains dull as the stock hovers around 100-DMA, placed at Rs 36 levels. The volumes have been subdued, suggesting a lack of interest by traders and investors. MACD and RSI show weakness, with RSI having resistance at 65 value and MACD trading in a negative crossover. The support remains at Rs 34.50 - the recent low of the stock. On the higher side, Rs 42 looks to be the next resistance. CLICK HERE FOR THE CHART

IDBI Bank Ltd (IDBI): After a strong surge in price, the counter has witnessed selling pressure at 200-weekly moving average (WMA). The bullishness was strong enough to lock counter in circuits for several sessions, as per the daily chart. The support remains at Rs 47 and Rs 45 with aims at crossing 52-WMA placed at Rs 53 levels. The RSI has entered overbought condition as per weekly chart, which is a signal of profit booking. CLICK HERE FOR THE CHART

Bandhan Bank Ltd (BANDHANBNK): The counter is trading with a firm positive sentiment. At current momentum, it is attempting to fill the gap between Rs 372 to Rs 363 levels. The rally is moving towards Rs 401, which is it 200-DMA. The RSI is trading in an overbought condition; yet the price has not shown any weakness. The support remains at Rs 350 levels. CLICK HERE FOR THE CHART