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Last Updated : May 14, 2019 05:15 PM IST | Source: Moneycontrol.com

Chart Check: Here’s what investors should do with Vodafone Idea, Tech Mahindra

After choking on bear grip for nine straight sessions, the bulls got some breathing space on may 14

Kshitij Anand @kshanand
 
 
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Nifty snapped 9-day losing streak on May 14 and reclaimed 11,200. However, for bulls to regain control, the index has to close above 11,250-11,300 convincingly else selling pressure could continue.

The final tally – the S&P BSE Sensex rose 227 points to 37,318 while the Nifty closed 73 points higher at 11,222.

“On the higher side, 11,280-11,300 indeed proved to be a key resistance zone for the day. If the bulls manage to take out that hurdle then 11,370-11,400 shall act as a subsequent barrier,” Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas told Moneycontrol.

“Nevertheless, the overall trend for the index continues to be down. Once the bounce is over, the Nifty can head lower towards the medium term rising trendline drawn from the October low, which is near 11,000,” he said.

We have collated technical outlook on five stocks which saw wild swings in intraday day trade:

Analyst: Mustafa Nadeem, CEO, Epic Research.

Vodafone Idea: Stock fell post Q4 results| Use pullback to exit

The stock is in a bearish trend for over three years now making lower tops and lower bottoms. There has been some sideways movement, but the overall momentum has been in the favour of the bears.

Failure to take out previous swing highs, lower tops and lower bottoms, minor pullbacks are some indication that bears are aggressively riding it.

Technically, there may be some pullbacks but those eventually end up trapping biases of investors. We believe this stock may remain in a negative trend and any pullback is an opportunity to exit.

Also, this sector has been underperforming since the last few quarters as the weakness continue to haunt telecom as space. This is an avoid/sell the stock.

HDFC: Buy on dips post Q4 for your long-term portfolio

This is one of the stocks that is a must in any investor or trader’s long-term portfolio. It has been in its secular uptrend since 2009, post the fall of 2008.

Though in last few quarters we are seeing sideways consolidation in stock as it is oscillating in the range and capped at Rs 2,100.

Trend indicators are also pointing towards sideways trading. The stock should be accumulated on any dips and correction towards Rs 1,800 as there is an uptrend channel formation.

The stock could retest higher targets of Rs 2,200. Hence once should continue to hold or buy on dips.

Tech Mahindra: IT stocks remained under pressure| Down over 3 percent

Tech Mahindra is in an overall uptrend and may continue to remain strong. The stock has recently breached its previous all-time high placed at Rs 748 to mark a new all-time high.

Since prices are in the unchartered territory, we believe the trend may remain in place with Rs 748 being the point of inflection.

There is also a positive (golden) cross on a higher timeframe which will now attract smart money on any dips. Hence, any correction from Rs 750 is an opportunity to enter into the bullish trend for a target of Rs 900. It is a hold/ buy on dips stock.

Bajaj Auto Ltd: Sell on rallies as long as it trades below Rs 3,150

The stock has broken out from a long term upward channel that prices were trending since 2009. The overall pattern of stock now looks weaker since the stock is seeing a change of character.

We believe it may face stiff resistance around Rs 3,110-3,150. Further, a break below Rs 2,800 would confirm its correction and the stock may slip to Rs 2,450. We believe as far as stock is below Rs 3,150, it is a sell on advances.

Bajaj Finance Ltd: Use dips to buy this blue chip stock

It was one of the outperformers that clearly witnessed smart money flowing in on dips in the last 3-4 years of its bullish run.

Though, in this stock, one should be looking for dips rather than buying at random points. It has recovered from the last three major corrections.

The stock is well supported by long-term support line that now comes at Rs 2,550–2,600. Hence, any correction in stock towards these levels should be utilized to buy. At present we believe the stock is expensive.

Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on May 14, 2019 05:15 pm
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