PFC, Yes Bank: Trading strategies for stocks to be added to BSE 100 index

The BSE on Friday announced changes to its Sensex 50, Sensex Next 50 and the BSE 100 index; here's what the charts suggest for select stocks.

Shares of TVS Motor, Hindustan Aeronautics, APL Apollo Tubes, Persistent Systems,  IDFC First Bank, Yes Bank, Power Finance Corp, UPL and Dabur are likely to remain in  focus in the coming trading sessions as the BSE Sensex 50, Sensex Next 50 and BSE 100  index rejig.

The BSE through a media release on Friday announced the index reconstitution results  by Asia Index Private Limited for these select indexes. While UPL and Dabur will be  added to Sensex 50 and Sensex Next 50; others will be part of Sensex Next 50 and the  BSE 100 index. The said changes will be with effect from December 18, 2023.

Here's a quick technical outlook on the following select stocks:

APL Apollo Tubes

Current Price: Rs 1,669

Support: Rs 1,560

Resistance: Rs 1,720

Shares of APL Apollo Tubes are seen trading in a range of Rs 1,500 - Rs 1,800 since late August. In recent trading sessions, the stock is seen facing resistance around the higher-end of the Bollinger Bands on the daily chart at Rs 1,720 level. 

On the downside, the stock may drift towards its 100-DMA (Daily Moving Average) which stands at Rs 1,560, before the stock makes a fresh attempt to break above the trading range. As and when the stock manages to successfully trade above the Rs 1,720-level, it can potentially rally towards Rs 1,900 level. CLICK HERE FOR THE CHART

Dabur

Current Price: Rs 542

Support: Rs 530; Rs 510

Resistance: Rs 542; Rs 550

Even as shares of Dabur has rallied over 8 per cent from their recent low around Rs 502. The stock is now seen within sticking distance of its trend line resistance at Rs 550-odd levels.

Further, the daily chart also shows existence of multiple hurdles for the stock in the form of 50- and 100-DMA at Rs 542 and Rs 553. Until the stock does not make a strong breakout above these resistances, the overall bias may remain tepid at the counter. On the downside, the stock is expected to find strong support around Rs 510 level. Next support for the stock is seen at Rs 530. CLICK HERE FOR THE CHART

Power Finance Corporation (PFC)

Current Price: Rs 322

Support: Rs 315

PFC has witnessed a phenomenal rally in the recent past; the stock has gained almost 42 per cent in less than one month. Further, the stock has zoomed over 312 per cent in little more than a year. The near-term bias is likely to remain bullish as long as the stock trades above Rs 315 level, suggests the weekly chart. CLICK HERE FOR THE CHART

IDFC First Bank

Current Price: Rs 84

Support: Rs 78; Rs 75

IDFC First Bank has been trading in a downward trending channel, making lower highs and lower lows. Recently, the stock tested the trend line resistance at Rs 89-odd levels, and then slipped to lower levels. The stock now seems on course to test the support at the lower-end of the channel, indicating a downside target of Rs 78-odd levels. Below which, the next major support will be the 200-DMA at Rs 75. CLICK HERE FOR THE CHART

Yes Bank

Current Price: Rs 20.80

Support: Rs 19.50; Rs 17.50; Rs 17.20

Following the massive fall in 2019, the stock for the first time in the last 3.5 years is now seen trading consistently above its 100-WMA (Weekly Moving Average) for the last three weeks. These can be seen as encouraging signs for the stock.

The weekly chart suggests, that the near term trend will be positive as long as the stock sustains above Rs 19.50. However, in case, the stock dips below the support, it could then drift towards the 20-WMA and 50-WMA at Rs 17.50 and Rs 17.20 - these are expected to provide cushion for the stock going forward. CLICK HERE FOR THE CHART