Buy Suzlon Energy stock; sell DLF, Federal Bank shares, suggest Arihant Capital

Indian benchmark indices settled sharply lower on Friday amid the renewed tariff and penalty threats by the US. Investor sentiments remained jittered amid sustained FIIs outflows, reflecting a cautious stance. BSE Sensex tanked 585.67points, or 0.72 per cent, to settle at 80,599.91, while NSE’s Nifty50 cracked 203 points, or 0.82 per cent, to close at 24,565.35 for the day.
 

Select buzzing stocks including Suzlon Energy, Federal Bank and DLF 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 ahead of Monday’s trading session:
 

DLF | Sell | Target Price: Rs 700-660 | Stop Loss: Rs 835

DLF has closed below its 50-day SMA placed at Rs 830 on the daily charts, indicating emerging weakness in the price trend. It is currently underperforming the benchmark indices, and the momentum indicator RSI is also reflecting bearish sentiment. Considering these technical factors, the downside momentum is likely to persist. Therefore, investors are advised to hold their short positions at the current market price with a stop loss placed at Rs 835. The expected downside targets are projected in the range of Rs 700 to Rs 660 over the next couple of weeks.

Suzlon Energy | Buy | Target Price: Rs 77-83 | Stop Loss: Rs 59

Suzlon Energy has taken support near the 200-day SMA on the daily charts and has witnessed a sharp rebound accompanied by higher volumes. Additionally, the momentum indicator RSI is positively poised and the stock has started outperforming the benchmark indices. These technical parameters indicate that the upward momentum is likely to continue. In light of this setup, investors may consider holding long positions at the current market price with a stop loss at Rs 59. The stock has the potential to test the target range of Rs 77-83 over the next couple of weeks.

Federal Bank | Sell | Target Price: Rs 165-153 | Stop Loss: Rs 208

Federal Bank is maintaining a lower-top, lower-bottom formation, which is a sign of prevailing weakness on the daily charts. The momentum indicator RSI is negatively poised, and the stock is underperforming the benchmark indices. Given these technical indicators, traders are advised to hold their short positions at the current market price with a stop loss at Rs 208. The stock has the potential to test the downside target range of Rs 165-153 in the coming weeks to months.