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HCL Tech, Canara Bank, Alkem Labs, Swan Energy: Trading strategies for these stocks

Domestic indices extended recent gains on Monday, thanks to buying in heavyweights from energy and banking sectors. The BSE Sensex jumped 330 points, or 0.52 per cent, to settle at 64,112.65. The NSE Nifty added 93.65 points, or 0.49 per cent, to end the day at 19,140.90. Some buzzing stocks namely Ltd, Alkem Laboratories Ltd and  are likely to remain under the spotlight today. Here is what domestic brokerage firm Axis Securities has to say on these stocks ahead of Tuesday’s trading session:

Alkem Laboratories | Buy Range: Rs 3,660-3,588 | Target Price: Rs 3,865-4,000 | Stop Loss: Rs 3,505
Alkem Labs showcased a strong breakout from a medium-term ‘falling channel’ formation at Rs 3,550 level on the weekly chart, in the middle of July, marked by a powerful bullish candle that indicated a positive bias. The stock retested its upper band of the channel and bounced back sharply, reaffirming the breakout. The stock is displaying a pattern of higher high-lows on the weekly chart, forming an upward-sloping trendline that indicated a strong uptrend. The weekly strength indicator RSI given a crossover above its reference line and generated a ‘Buy’ signal.

Canara Bank | Buy Range: Rs 372-366 | Target Price: Rs 407-418| Stop Loss: Rs 350
Canara Bank broke above its multiple resistance zone at Rs 348 in the middle of September, climbing to Rs 387 level on the weekly chart. After retesting the breakout area, it bounced back sharply, confirming the continuation of the uptrend. The stock is exhibiting a pattern of higher high-lows on the weekly chart, forming an upward-sloping trendline that indicated a strong uptrend. The stock experienced a surge in trading volume during the breakout, indicating a substantial increase in market participation at the breakout level. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

HCL Technologies | Buy Range: Rs 1,260-1,236 | Target Price: Rs 1,325-1,375 | Stop Loss: Rs 1,210
HCL Tech surged above its key resistance zone at Rs 1,200 in early September, reaching Rs 1, 311 on the weekly chart. After successfully retesting the breakout level, the stock rebounded strongly, affirming the ongoing uptrend. The stock is currently following a rising channel pattern and recently found support at the lower band of the channel. It is now on track to move towards the upper band of the channel. The stock is holding above key averages of 20-, 50-, 100-, and 200-day simple moving average (SMA), signaling a strong uptrend in the stock. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

Swan Energy | Buy Range: Rs 360-354 | Target Price: Rs 405-425 | Stop Loss: Rs 333
Swan Energy has broken above the cup and handle pattern on the daily chart with a strong bullish candle, signaling a positive momentum. Volume activity during the pattern formation period declined, but it surged at the breakout, reaffirming the positive bias in the stock trend. It broke above the weekly upper Bollinger band, generating a buy signal. The stock is forming higher highs and lows on the weekly chart, signaling a robust uptrend. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal.

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