Big Drivers on D-St: What Should Investors Do With HCL Tech, Adani Total Gas and L&T?
On the industry side, buying pressure appeared in utilities, telecommunications, electricity and real estate, while selling pressure appeared in IT, metal, auto and FMCG counters. Stocks in focus include
down more than 1% on Tuesday and L&T.
Here’s what Viral Chheda, Technical Analyst, SSJ Finance & Securities recommends investors to do with these stocks as the market continues to trade today:
HCL Technologies: Buy on Dips | Target 1,150-1,250 Rs
On the long-term chart, after hitting a low of around Rs 375 in March 2020, the stock had a strong rally to reach an all-time high of Rs 1,377 in September 2021.
During this period, on high volume, the stock made a Higher High and a Higher Low, a positive for the bulls.
Until January 2022, the price was flat, creating a Double Top around Rs 1,377, and then correcting to retrace nearly 45% of the previous rally to create a low around Rs 925.
The price is currently moving in a downtrend and has support around the odd Rs 900 level. It would be a good level to enter around that and beyond Rs 850 for a rally of Rs 1,150-1,250 over the next 6-8 months.
Therefore, we recommend traders to wait at the current levels and enter a dip around 900 and further on a deeper fall of Rs 850 with a stop loss of Rs 790 on a closing basis. On the downside, we could see odd levels of Rs 1,150-1,250 over the next 6 to 8 months.
Adani Total Gas: Wait
From a low of Rs 174 in September 2020, the price has rallied to reach an all-time high of Rs 2,740 in April 2022. Price has made the Low higher than the High during this time period. Volume is also quite good during this period.
Over the next 3 months, the price saw some profit forming a Flag Pattern as it faced resistance from every lower high and took support at every lower low.
In the current week, the price broke out of the pattern on the higher side and rallied to make a new high of Rs 2,844. The price is currently moving higher and should not enter at this level. Wait for some correction and enter around Rs 2,650 and beyond at Rs 2,550 for a rally of Rs 3,000-3,300 over the next 6-8 months.
Therefore, we suggest traders wait at the current levels and drop to Rs 2,650 or above on a deeper fall of Rs 2,550 with a stop loss of Rs 2,300 on a closing basis. On the upside, we could see Rs 3,000-3,300 in the next 6 to 8 months.
After hitting a low of Rs 661 in March 2020 on the weekly chart, the stock had a strong rally to reach an all-time high of Rs 2,078 in January 2021.
Shares rose 1417 points. From a high of Rs 2,078, the price witnessed selling pressure as it dropped almost 44% from the previous rise to as low as Rs 1,456.
During this correction, the price moved within the Parallel Channel and last week on higher volume the price broke out of the pattern on the higher side and closed above it indicating continued bullish momentum.
The price has also closed above the 21-day EMA at 1662. The Stochastic Oscillator is moving in an uptrend along with an increase in volume, suggesting an upward bias with limited downside risk.
One can buy at the current price and beyond at a drop of Rs 1,595 with an upside of Rs 1,950-2,150 over the next 6-8 months.
Therefore, we recommend buying at this level and beyond on a retracement of Rs 1,595 with a stop loss of Rs 1500 on a closing basis. Price increase is seen at Rs 1,950-2,150 for the next 6-8 months.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by experts are their own. They do not represent the views of The Economic Times)