Trade Spotlight: Key Strategies for Tata Steel, Kotak Mahindra Bank, Hero MotoCorp, UPL & More on February 11
Trade Spotlight: Street remained under bearish control for the fourth consecutive session on February 10, with the Nifty 50 plunging by 0.8%. Market breadth strongly favored the bears, with 2,149 stocks declining against just 471 gainers on the NSE. However, after this consistent downturn, a potential rebound might be on the horizon. Whether this rebound will be sustainable remains the key question for traders.
In this article, we break down expert trading strategies for key stocks such as Tata Steel, Kotak Mahindra Bank, Hero MotoCorp, UPL, Chambal Fertilisers, and more to help traders navigate market movements effectively.
Tata Steel (CMP: ₹134) – Potential Reversal on Strong Support
Tata Steel has tested its 200-week EMA and is showing signs of reversal. This critical support level coincides with multiple technical indicators:
✅ Retest of the previous breakout zone
✅ S3 yearly Camarilla support acting as a strong floor
✅ Bullish BAT reversal zone confirmation
✅ Fibonacci retracement between 0.618% and 0.50%
These factors indicate a high-probability bounce-back scenario for Tata Steel. Traders can consider going long within the ₹133-135 range.
📈 Strategy: Buy
🎯 Target: ₹145
🛑 Stop-Loss: ₹128
Kotak Mahindra Bank (CMP: ₹1,966.8) – Breakout from Sideways Consolidation
Kotak Mahindra Bank has successfully broken out of its consolidation phase, witnessing a significant increase in Open Interest (OI)—a sign of long buildup after a long time.
🔹 Strong support levels at ₹1,920 and ₹1,900
🔹 Near-term resistance at ₹2,000 strike
🔹 Trend continuation likely with the highest call base at ₹2,000
Given these indicators, a bullish move seems probable.
📈 Strategy: Buy
🎯 Target: ₹2,060, ₹2,100
🛑 Stop-Loss: ₹1,920
Hero MotoCorp (CMP: ₹4,215.55) – Holding Key Supports
Hero MotoCorp has seen short covering before and after the budget, hinting at a potential rally. Despite recent short build-ups, the stock is holding above critical support zones:
✔️ 30-day VWAP at ₹4,192 – Short-term support
✔️ Strong base at ₹4,100
✔️ Upside resistance from ₹4,300 to ₹4,500 due to aggressive call writing
Traders can expect one more bounce if the stock continues to hold these levels.
📈 Strategy: Buy
🎯 Target: ₹4,450, ₹4,600
🛑 Stop-Loss: ₹4,100
UPL (CMP: ₹635) – Ready for a Breakout
UPL recently broke out from a 342-day Volatility Contraction Pattern (VCP), signifying strong momentum. The stock is currently consolidating in a pennant-like formation, which could lead to an explosive move upwards.
🔸 Five tight closes suggest increasing compression
🔸 Impending volume expansion indicates accumulation
🔸 A breakout above ₹635 could lead to ₹720
📈 Strategy: Buy
🎯 Target: ₹720
🛑 Stop-Loss: ₹620
Chambal Fertilisers (CMP: ₹548.65) – Breaking Out from Consolidation
Chambal Fertilisers has broken out from a sideways consolidation phase, and the increase in Open Interest (OI) confirms a long buildup.
✔ Crucial support range between ₹530-₹510
✔ Highest Call base at ₹560 – Immediate resistance
✔ Potential trend continuation toward ₹600 levels
Given this setup, traders may go long on Chambal Fertilisers for a potential upside.
📈 Strategy: Buy
🎯 Target: ₹575, ₹590
🛑 Stop-Loss: ₹528
Financial Ratios & Key Metrics for Selected Stocks
To aid traders in decision-making, here are some key financial ratios of the highlighted stocks:
| Stock | PE Ratio | PB Ratio | ROE (%) | Debt/Equity | Dividend Yield (%) |
|---|---|---|---|---|---|
| Tata Steel | 10.5 | 1.3 | 15.2 | 0.95 | 2.1 |
| Kotak Mahindra Bank | 28.7 | 3.8 | 14.5 | 0.20 | 0.6 |
| Hero MotoCorp | 19.2 | 4.2 | 17.8 | 0.01 | 3.4 |
| UPL | 15.8 | 2.1 | 12.3 | 0.50 | 2.9 |
| Chambal Fertilisers | 11.7 | 1.9 | 13.1 | 0.34 | 1.7 |
Conclusion: Key Trading Takeaways
The market’s four-day losing streak has created opportunities for potential rebounds in key stocks. Tata Steel, Kotak Mahindra Bank, Hero MotoCorp, UPL, and Chambal Fertilisers all show technical strength, with favorable risk-reward ratios.
📊 Market Outlook for February 11:
🔸 A potential rebound is likely, but sustainability will be crucial
🔸 Traders should focus on stocks showing strong technical setups
🔸 Key support and resistance levels must be watched closely
As always, risk management is key. Traders should set appropriate stop-loss levels and position sizing strategies to navigate market volatility effectively.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.