Indian market closed with gains of over 1 per cent for the second consecutive day in a row on Thursday pushing benchmark indices above crucial resistance levels. The S&P BSE Sensex closed nearly 900 points higher on Thursday at 57,911 while the Nifty50 rose 256 points to close at 17,392.
Sectorally, buying was seen in autos, consumer discretionary, IT, banks, and consumer durable stocks while marginal selling was seen in metals stocks.
Stocks which were in focus included RIL, India’s most valued company with a market capitalization of more than Rs 18.8 lakh crore, which hit a fresh 52-week high of Rs 2,788 before closing with gains of 2.3 per cent at Rs 2,782.
Other stocks in focus include names like Nestle India as well as HCL Technologies post their Q4 results.
Here’s what Santosh Meena, Head of Research, Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today:
Reliance Industries: Buy | Target: Rs 2,950-3,000
RIL hit a fresh high after global investment bank Morgan Stanley upgraded its target price to Rs 3,253, signaling about a 20 per cent upside in the counter.
Technically, RIL is in a strong bullish momentum and is outperforming the market where it is continuing to rise upwards after breaking out from a bullish Flag formation on the daily chart.
The pattern target comes around Rs 2,950-3,000 which coincides with an upsloping trendline.
On the downside, Rs 2,680-2,640 has become an immediate demand zone. Investors should continue to hold this stock with an immediate target of Rs 2,950 level.
Nestle India: Hold | Stop Loss: Rs 17,800
Nestle India said that its net profit fell 1.25 per cent year-on-year (YoY) to Rs 594.71 crore in March quarter compared with Rs 602.25 crore in the same quarter last year.
Shares of Nestle India closed flat on Thursday with a negative bias. The stock has been an underperformer in the last one year (up a little over 6 per cent) compared to over 20 per cent upside seen in Nifty50 in the same period.
The counter is trying to bottom out after a meaningful correction where it is forming a double-bottom formation and the breakout will be successful above the level of Rs 18,800 which is also its 200-DMA.
Above Rs 18,800, we can expect a move towards Rs 19,400 level. On the downside, Rs 17,800 is an immediate and sacrosanct support level which is a cluster of 20 and 50-DMA.
Investors can hold this stock as the downside looks limited. However, upside expectations should also be moderate as the momentum will remain slow. Short-term traders can maintain a stop loss of Rs 17,800 on a closing basis.
HCL Technologies: Buy on dips | Target: Rs 1,150-1,180
HCL Technologies, India’s 3rd largest company by market capitalization, reported stellar results post market hours on Thursday.
The IT major said its consolidated net profit for the quarter ending March stood at Rs 3,593 crore, up 226 per cent from Rs 1,102 crore in the same quarter last year.
The counter is trading near-critical demand zone of Rs 1,070-1,050 and if it manages to hold this area then we can expect a bounce back where Rs 1,150-1,180 will be the resistance area.
If it slips below Rs 1,050 level then we can expect selling pressure towards Rs 900 level. Therefore, short-term traders should maintain stop loss of Rs 1,050 level while any fall around Rs 900 will be a good buying opportunity for long-term investors.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
