Trading ideas: Tata Steel, IOB , IRFC, Bank of India and Unichem Labs

Tata Steel (Duration 30 days) | Target Rs 116

Nifty Metal index has recently generated a breakout above a falling supply line joining highs of April & September 2022 signalling resumption of up move. Within the large cap metal stocks, ICICIdirect remains constructive on Tata Steel, as it has registered a breakout above the falling supply line joining highs since August 2022 ( Rs 113), signalling end of corrective phase and resumption of the up move.

Buying demand is seen emerging in the stock after a base above the 61.8 per cent retracement of the previous up move (Rs 84-113),  signalling an overall positive price structure, it said.

ICICIdirect expects the stock to maintain positive bias and head towards Rs  116 level in the coming weeks, being the 123.6 per cent external retracement of the August-September decline (Rs 113-97). Among the oscillators, the daily 14-period RSI is seen rebounding, taking support at its -period average, thus, validates the positive bias

(ICICIdirect)

Indian Overseas Bank (2-3 weeks) | Target Rs 25

The price action on Indian Overseas Bank (IOB) shows a massive breakout of a basing pattern. The basing pattern is in form of a huge ascending triangle. The stock broke out of the resistance zone of Rs 19-20, made a high of Rs 22 and now it is back to the breakout zone. This is a breakout-pullback trade. Banking stocks are in a strong trend.

IOB has also shown a strong Golden Cross where 50-day SMA moved above the 200-day SMA. This is a strong buy signal. On the upside price, the stock has potential to rally to Rs 25 and above that to Rs 30. Buy the stock with a 2-3 weeks' time horizon. Place stop loss below Rs 18.50.

(Manish Shah, Independent analyst)

IRFC (14 days) | Target Rs 28.50

The share price of IRFC is seen resuming up move after base above the last 10 months range breakout area (Rs 24.50-19.50), signalling continuation of the up move.  The breakout is supported by highest volume in just 18 months, thus offers fresh entry opportunity.

ICICIdirect expects the stock to head towards Rs 28.50 levels in the coming sessions. This target is the measuring implication of the last 10 months range (Rs 24.50-19.50) Among oscillators, MACD in strong up trend diverging from its nine periods average.

(ICICIdirect)

Unichem Labs (2-3 weeks) | Target Rs 480

The price action in Unichem Labs shows a strong trend. Price action showed a pullback to the support of a rising trendline and the support of previous swing high. It is showing a pattern of higher highs and higher lows.

Any corrective decline towards the support zone are buying opportunities. On the upside price, the stock should see a rally towards Rs 480 and above that to Rs 510. One can Buy this stock for 2-3 weeks' time horizon. Keep stop below Rs 380.

(Manish Shah, Independent analyst)

Bank of India (7 days) | Target Rs 80

PSU banking stocks remain in strong up trend and is seen rebounding after three sessions of breather. The index has recently witnessed an extended up move after breaking above the highs of 2021, signalling strength. Within the midcap PSU banking stocks, ICICIdirect remains constructive on Bank of India,  which it expects can outperform going ahead.  The stock after the strong up move of the preceding four weeks is seen consolidating in the last five sessions. The last five sessions consolidation has taken the shape of a bullish pennant formation. ICICIdirect expects the stock to generate a breakout above the same in the coming sessions, thus, offering fresh entry opportunity.

The stock recently generated a breakout above the supply line joining highs of 2017 (Rs 216) and 2021 (Rs 101), signalling a structural up trend. ICICIdirect expects the stock to head towards Rs 80 level in the coming sessions, being the 161.8 per cent external retracement of the last five sessions breather (Rs 77-72), it said.

(ICICI Securities)

Also Read: Timken India shares rise 10% in early trade, here’s why