Trade Spotlight: Key Trading Strategies for Tata Motors, BHEL, Bajaj Finserv, Apollo Tyres, Aarti Pharmalabs, and More on February 18
Trade Spotlight : The Indian stock market rebounded on February 17, halting an eight-day losing streak. Despite early losses, the indices managed to close with moderate gains, suggesting the potential for further recovery. However, market breadth remained weak, with 1,796 declining stocks compared to 835 advancing stocks on the NSE.
Going forward, traders should watch for sustainability in the ongoing market consolidation. Here are key trading strategies for some of the most active stocks for February 18.
Top Trading Picks for February 18
1. Bharat Petroleum Corporation Ltd (BPCL) | CMP: ₹252.3
BPCL has corrected sharply by 34% from its peak of ₹376. However, it has formed a Bullish Shark pattern near the ₹240-₹242 support zone, coinciding with key monthly and quarterly pivot supports. Additionally, the stock is hovering around the 50% Fibonacci retracement of the uptrend from October 2022 to September 2024, suggesting a potential reversal.
✅ Strategy: Buy
🎯 Target: ₹275
🛑 Stop-Loss: ₹235
2. Tata Motors | CMP: ₹686.6
Tata Motors has fallen 43% from its peak of ₹1,179 and is now forming a Bullish Crab pattern in the ₹665-₹680 range. This region aligns with the S1 Monthly Pivot Support and is showing signs of RSI bullish divergence, signaling potential upward momentum.
✅ Strategy: Buy
🎯 Target: ₹755
🛑 Stop-Loss: ₹650
3. Bharat Heavy Electricals Ltd (BHEL) | CMP: ₹193.5
BHEL recently formed a Bullish Engulfing Pattern near a crucial support level, which led to a 10% rally before a pullback. The stock is also showing RSI divergence and hammer candlesticks, reinforcing buying interest at lower levels.
✅ Strategy: Buy
🎯 Target: ₹222
🛑 Stop-Loss: ₹176
4. Computer Age Management Services (CAMS) | CMP: ₹3,424.55
CAMS has seen strong Put additions at ₹2,900-₹3,300 levels, indicating base formation. Since its inclusion in the F&O segment, open interest has increased, making short-covering likely in case of a market recovery.
✅ Strategy: Buy
🎯 Target: ₹3,600, ₹3,700
🛑 Stop-Loss: ₹3,290
5. Apollo Tyres | CMP: ₹417.85
Apollo Tyres has rebounded well from intraday lows. The stock is heavily oversold, with futures open interest at a four-year low. A bounce-back from current levels is likely.
✅ Strategy: Buy
🎯 Target: ₹450, ₹465
🛑 Stop-Loss: ₹406
6. Bajaj Finserv | CMP: ₹1,894.8
Bajaj Finserv has shifted from short positions to early signs of long buildup, with a higher tops and bottoms pattern. Additionally, strong put writing at ₹1,800-₹1,860 levels signals robust support.
✅ Strategy: Buy
🎯 Target: ₹1,980, ₹2,030
🛑 Stop-Loss: ₹1,840
7. UltraTech Cement | CMP: ₹11,490
UltraTech Cement is forming a Cup and Handle pattern, spanning 39 days on the daily charts. A breakout above ₹11,800 with rising volume could signal strong buying momentum.
✅ Strategy: Buy
🎯 Target: ₹12,490
🛑 Stop-Loss: ₹10,990
8. Aarti Pharmalabs | CMP: ₹791
Aarti Pharmalabs has broken out of a five-day consolidation, confirming a 117-day Volatility Contraction Pattern (VCP) breakout. The breakout was accompanied by volume exceeding 2x the 50-day average, indicating institutional buying.
✅ Strategy: Buy
🎯 Target: ₹900
🛑 Stop-Loss: ₹750
9. Bharti Airtel | CMP: ₹1,675.55
Bharti Airtel is forming a corrective bar on the daily charts. Though volume remains low, institutional accumulation is evident. A breakout above ₹1,720 could trigger fresh buying momentum.
✅ Strategy: Buy
🎯 Target: ₹1,800
🛑 Stop-Loss: ₹1,625
Key Financial Ratios of Featured Stocks
| Stock | PE Ratio | PB Ratio | ROE (%) | Dividend Yield (%) |
|---|---|---|---|---|
| BPCL | 5.6 | 1.3 | 21.5 | 4.2 |
| Tata Motors | 18.2 | 2.5 | 13.7 | 0.4 |
| BHEL | 23.7 | 1.9 | 8.2 | 1.5 |
| CAMS | 33.4 | 10.1 | 27.8 | 1.2 |
| Apollo Tyres | 12.8 | 1.6 | 15.4 | 0.9 |
| Bajaj Finserv | 35.6 | 4.2 | 12.3 | 0.6 |
| UltraTech Cement | 30.2 | 4.9 | 18.6 | 0.8 |
| Aarti Pharmalabs | 28.9 | 3.1 | 16.2 | 0.5 |
| Bharti Airtel | 22.4 | 3.8 | 10.5 | 0.7 |
Market Outlook
With the market recovering from its recent dip, traders should remain cautious yet optimistic. While technical indicators suggest potential upside moves, sustainability is key. If the broader indices continue to consolidate, these stocks could see strong momentum.
Key Levels to Watch:
- Nifty 50 Resistance: 21,800
- Nifty 50 Support: 21,250
- Bank Nifty Resistance: 46,500
- Bank Nifty Support: 45,200
Conclusion
The stock market’s resilience after a prolonged downturn indicates a potential trend reversal. Tata Motors, BHEL, BPCL, and Apollo Tyres, among others, present promising setups for traders. However, strict risk management with stop-loss levels is crucial in this volatile environment.
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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.