Buy IREDA & IndusInd Bank shares; hold Cochin Shipyard stock, suggest Arihant Capital

Indian benchmark indices settled with big gains on Friday after RBI cut the interest rates by 50 basis point in a positive surprise for Dalal Street. A big rate cut and rise of liquidity in the economy boosted the morale of traders. BSE Sensex surged 746.95 points, or 0.92 per cent, to settle at 82,188.99, while NSE's Nifty50 gained 252.15 points, or 1.02 per cent to end at 25,003.05 for the day.

 

Select buzzing stocks including Cochin Shipyard Ltd, Indian Renewable Energy Development Agency Ltd (IREDA) and IndusInd Bank Ltd are likely to remain under the spotlight of traders for the session today. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say about these stocks:

 

Indian Renewable Energy Development Agency | Buy | Target Price: Rs 195-205 | Stop Loss: Rs 165

IREDA is exhibiting a tight consolidation pattern over the past 20 days on the daily charts, indicating a phase of reduced volatility. While the stock is currently underperforming the benchmark indices, the momentum indicator remains positively aligned, hinting at a potential upside breakout. In view of the above, investors may consider initiating a buy position at the current market price levels Rs 175, placing a stop loss at Rs 165. The stock has the potential to move towards the target range of Rs 195–205 in the coming couple of weeks.

 

Cochin Shipyard | Hold | Target Price: Rs 2,576-2,670 | Stop Loss: Rs 2,276

The daily chart reflects strong upward momentum in Cochin Shipyard, although it now appears somewhat extended in the short term. Despite this, the stock continues to outperform the benchmark indices, and the Relative Strength Index (RSI) remains positively aligned, both of which support the potential for a continuation of the bullish trend. In light of these observations, investors are advised to 'hold' the stock at current levels of Rs 2,376, with a stop loss at Rs 2,276. The anticipated upside target lies in the range of Rs 2,576–2,670 over the next couple of weeks.

 

IndusInd Bank | Buy | Target Price: Rs 930-980 | Stop Loss: Rs 770

IndusInd Bank has been consolidating in a tight range for the past 20 sessions on the daily charts, reflecting a period of low volatility. Despite its current underperformance relative to the benchmark indices, the momentum indicator is positively positioned, suggesting the likelihood of an upside breakout. Based on this setup, investors may consider entering a buy position at the current levels of Rs 824, with a stop loss placed at Rs 770. The stock is expected to move towards the target range of Rs 930–980 over the next couple of weeks.