Trade Spotlight: How should you trade Tata Steel, IndusInd Bank, JK Paper, Jubilant Ingrevia and others on Tuesday?

Technically, IndusInd Bank has provided a breakout from an inverse head and shoulders pattern, which is a bullish reversal pattern. The momentum indicator MACD (Moving Average Convergence Divergence) has also provided a bullish crossover, suggesting the stock is likely to inch higher from hereon. From a derivatives perspective, there has been an unwinding of the strikes on the Call side (Rs 1,440 and Rs 1,460), and there has been good addition in the Rs 1,400 and Rs 1,460 strikes, increasing the probability of an upside. There is heavy Call activity from Rs 1,480 to Rs 1,500 levels, setting a short-term target of Rs 1,508, with Rs 1,525 as a further upside. The stock is trading above its maximum pain level of Rs 1,460, making Rs 1,460 an immediate support level.

Strategy: Buy

Target: Rs 1,508, Rs 1,525

Stop-Loss: Rs 1,443

JK Cement | CMP: Rs 4,813

JK Cement has surpassed multiple swing resistance levels, and the MACD has provided a bullish crossover. From a derivatives point of view, the stock has seen good long build-up in the futures segment. The stock has a minor hurdle at Rs 4,800, where the highest Call base exists. However, there has been good unwinding of Calls on the higher side at Rs 4,900 and Rs 5,000 levels, making these its immediate targets. Good additions in the Rs 4,500 and Rs 4,600 strikes on the Put side suggest strong support at those levels. The stock is trading well above its maximum pain level of Rs 4,600, indicating a positive short-term outlook.

Strategy: Buy

Target: Rs 4,900, Rs 5,000

Stop-Loss: Rs 4,640

Tata Steel | CMP: Rs 154

Tata Steel has completed a five-wave falling structure, signaling that a triple zigzag corrective pattern is over, and a retracement is expected. The stock has also seen short covering at lower levels, leading to a bullish near-term outlook. The overall metal sector looks bullish from a short covering perspective, further supporting Tata Steel's positive near-term outlook.

Strategy: Buy

Target: Rs 160, Rs 164

Stop-Loss: Rs 148

Pravesh Gour, Senior Technical Analyst at Swastika Investmart

GM Breweries | CMP: Rs 986

GM Breweries has broken out of an ascending triangle pattern on the longer timeframe, forming a classic structure on the daily chart. This pattern indicates an immediate target of Rs 1,100, with potential further upside to Rs 1,200. On the downside, Rs 870 serves as immediate support. The MACD and the momentum indicator RSI (Relative Strength Index) are positively positioned, supporting the stock’s current strength.

Strategy: Buy

Target: Rs 1,144

Stop-Loss: Rs 870

PTC India | CMP: Rs 242

PTC India is in a classical uptrend after breaking out of a symmetrical triangle formation with strong volumes. The overall structure remains bullish as it trades above key moving averages. Both the RSI and MACD indicators suggest strong momentum. On the upside, Rs 260 serves as immediate resistance, with potential to reach Rs 280+ in the near term if the stock breaks this level. On the downside, Rs 220 acts as major support in case of correction.

Strategy: Buy

Target: Rs 274

Stop-Loss: Rs 220

Jubilant Ingrevia | CMP: Rs 774

Jubilant Ingrevia is forming higher highs and higher lows, making it attractive for long-term investors as it is trading above all key moving averages. It is building a strong base around Rs 700. On an immediate basis, Rs 850 is a horizontal resistance line. If the stock breaks above this level, it could rally towards Rs 900+ levels. On the downside, Rs 700 is a strong immediate support. Momentum indicators are positively positioned, supporting the strength of the trend.

Strategy: Buy

Target: Rs 884

Stop-Loss: Rs 700

Mehul Kothari, DVP – Technical Research at Anand Rathi

Adani Power | CMP: 666

Recently, Adani Power broke through a key bearish trendline on the daily chart, signaling a potential reversal in momentum from its previous downtrend. Prior to this breakout, the stock formed a double-bottom pattern, a bullish reversal structure indicating strong support and a potential shift in price direction. This pattern was accompanied by a bullish divergence in the RSI, where the RSI moved higher while the price remained low, signaling weakening selling pressure. This divergence occurred near a significant demand zone and previous breakout range, enhancing the stock's positive sentiment. A long position is recommended in the Rs 655-675 range, with an upside target of Rs 755. A stop-loss should be placed at Rs 620, and close attention should be paid to a daily close below this level to exit the position.

Strategy: Buy

Target: Rs 755

Stop-Loss: Rs 620

Yes Bank | CMP: Rs 23.5

Yes Bank recently violated a bearish trendline on the daily chart, signaling a potential shift in its price action. Following this violation, the stock entered a period of consolidation, retesting the broken trendline. Such retests often indicate that the trendline, once a resistance, is now acting as support. In the past week, Yes Bank has reversed direction from this trendline, suggesting a potential end to the bearish phase. The stock has consistently respected the 200-day Exponential Moving Average (DEMA) high-low band, which adds to the bullish sentiment. Additionally, the RSI on the daily chart has breached its bearish trendline, further strengthening the bullish outlook. A long position is advised in the Rs 23-24 range, targeting Rs 31. A stop-loss should be placed at Rs 19.75, and a close below this level should be closely monitored to mitigate risk.

Strategy: Buy

Target: Rs 31

Stop-Loss: Rs 19.75

JK Paper | CMP: Rs 465

In July 2024, JK Paper experienced a significant rise, peaking around Rs 632, but has since declined by 32 percent. The stock appears to be stabilizing near its 200-DEMA, which coincides with the 0.618 Fibonacci retracement level, suggesting the current price may attract buyers. Technically, the daily RSI shows a V-shaped impulsive structure near the oversold zone, indicating a potential bullish reversal in the coming weeks. Investors may consider buying in the Rs 440-460 range, targeting an upside to Rs 535, while maintaining a stop-loss at Rs 405 on a daily closing basis to manage risk.

Strategy: Buy

Target: Rs 535

Stop-Loss: Rs 405

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