These stocks trading slightly ahead of Fed, Budget

Domestic stock indexes Monday were trading up slightly ahead of the US Federal Reserve and the Union Budget's policy review. Sensex increased by 169.51 points, or 0.29 per cent, to 59,500. The nifty settled at 17,648 on the day. The 95, up 44.60 points, or 0.25 per cent, was up 44.60 points.

On the traders' radar were certain stocks such as Ambuja Cements, Sun Pharmaceuticals and Bajaj Finserv. Here is what Jigar S Patel, senior manager technical research analyst at Anand Rathi Shares and Stock Brokers suggests on these stocks for Tuesday's trading session:

The stock of Ambuja Cements has nosedived 34 per cent in the last five trading sessions. The scrip is trading close to its crucial historical support zone of Rs 330 -- 340 levels at the current juncture. The daily RSI and MACD are showing extreme oversold situations, from an indicator perspective. One can buy ths stock in small tranches in the range of Rs 340 - 350 and later in the Rs 320 - 330 range, with a target of Rs 425. Keep a stop loss at Rs 299 level.

Sun Pharma stock looks lucrative, but one needs to be cautious because it is close to its Triple Top levels of around 1,055 -- 1,070. On a daily scale, a Shooting Star formation is seen near the 1,070 level, which could be an early warning. The daily RSI is showing negative divergence, while the daily MACD is losing upside momentum, indicating a pullback on the counter. If tested, one can book profit in the range of 1,045 -- 1,070. A fresh buy is not advised at current levels.

The stock saw a correction of 15 per cent in January. The sales volume did not increase in the fall amid a fall in stock price, which is an anomaly with respect to volume spread analysis. The fall in price is not complimented by volume. It shows that the bears are losing steam. A Doji candle is seen in the last two sessions, followed by an Inverted Bullish Hammer, which suggests an early reversal of the counter. One can buy Bajaj Finserv near Rs 1,310 -- 1,340 levels, with an upside target of Rs 1,450.