Stocks to buy: Bajaj Housing, Tata Steel and Coal India on investors' radar

Equity benchmarks surrendered early gains to close with losses in a volatile session on Friday, snapping their two-day winning streak.

Stocks that were in focus include names like Bajaj Housing, which fell 0.8% and Tata Steel, which gained 0.1% and Coal India, whose shares dropped 0.47% on Friday.

Here's what Pravesh Gour, Senior Technical Analyst at Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today.

Bajaj Housing Finance

The stock is currently in a downtrend, exhibiting lower lows and lower highs on longer-term charts. This bearish trend is further supported by the stock trading below its crucial 100- and 200-day Simple Moving Averages (SMAs), indicating a weakening of its relative strength. Moreover, momentum indicators are also signaling negative momentum, suggesting a continuation of the downward price movement.

On the downside, a key support level exists at Rs 100. This level may offer some temporary relief from the selling pressure, potentially leading to a short-term bounce-back. However, on the upside, the level of Rs 114 is likely to act as a significant resistance level, hindering any attempts at a sustained price recovery.

Tata Steel

The primary trend of the counter remains weak; however, it is showing signs of a bounce-back from the ₹120 level. Currently, it is trading within a range of Rs 125-135, with Rs 135 acting as a crucial resistance.

A breakout above Rs 135 could open the door for further upside towards Rs 140 and Rs 145, aligning with the 50-day and 100-day moving averages, respectively. On the downside, immediate support is seen at Rs 125, while the key support level stands at Rs 120. From a long-term investment perspective, the current levels may present a good buying opportunity.

Coal India

As the market continues to exhibit a weak structure, Coal India has experienced a significant decline from its highs. Currently, the stock has found support at the 100-week Simple Moving Average (SMA) and has shown signs of recovery. It is presently trading within a range of Rs 360-400, with Rs 400 acting as a critical resistance level, as the 50-day Moving Average (DMA) is positioned there.

A breakout above Rs 400 could trigger short covering, pushing the stock towards the next resistance level at Rs 440, where the 100 DMA is located. On the downside, immediate support lies at Rs 375, while the key support level is at Rs 460.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)