Trade Spotlight: How should you trade NHPC, CDSL, L&T, M&M, Hero Motocorp and others?

Stock Market Trading

The benchmark indices ended the session on May 14 in the green, with about 1,736 shares advancing and 535 shares declining on the NSE. Market seems to be positive for now.  Here are some trading ideas for the near-term.

Om Mehra, Technical Analyst at SAMCO Securities

NHPC | CMP: Rs 98.8

NHPC

The stock has established a robust foundation following a significant correction and has surpassed the immediate resistance at 96 levels. It's maintaining its position above the 20-day Simple Moving Average (SMA). The contraction of the bollinger bands indicates reduced volatility, potentially setting the stage for a breakout above the 100 level, which could further fuel buying interest.

Strategy: Initiate a long position at Rs 98.8
Target: Rs 114
Stop loss: Rs 92

CDSL | CMP: Rs 2,056

CDSL

The stock has formed a long-legged doji on the daily chart, indicating market indecision. Previous resistance now serves as support, bolstering the bullish outlook. Trading above the 50-day moving average and an RSI reading above 50 indicate positive momentum. A price decline with decreased volume suggests a potential reversal.

Strategy: Initiate a long position at Rs 2,056
Target: Rs 2,220
Stop loss: Rs 1,970

BHEL | CMP: Rs 287.75

BHEL

The stock is forming higher highs and higher lows, indicating a sustained uptrend. It is placed above its 20 and 50 DMA, suggesting bulls are in control. The RSI comfortably holding at 60 levels is gradually inching higher, indicating strength in the stock. The morning star formation on the daily chart confirms a bullish setup.

Strategy: Initiate a long position at Rs 287.75
Target: Rs 315
Stop loss: Rs 275

Pravesh Gour, Senior Technical Analyst at Swastika Investmart

Godfrey Phillips India | CMP: Rs 3,605

Godfrey Phillips India

The stock appears to be emerging from a prolonged consolidation phase, marked by robust trading volumes and a breakout from a triangle pattern. The MACD (moving average convergence divergence) indicator reinforces the current bullish momentum, complemented by a positive positioning of the RSI indicator.

Strategy: Buy
Target: Rs 3,900 - Rs 4,100
Stop loss: Rs 3,274

Kirloskar Brothers | CMP: Rs 1,532

Kirloskar Brothers

The stock has witnessed a breakout of long consolidation with huge volume, soaring above all major exponential moving averages on the daily chart. Currently, it is trading at its all-time high level and may move towards the Rs 1700+ level in the near term. MACD is sustaining the current strength and the RSI is also favourably poised.

Strategy: Buy
Target: Rs 1,746
Stop loss: Rs 1,380

Engineers India | CMP: Rs 246

Engineers India

The stock is forming a symmetrical triangle pattern on the daily chart. The breakout will be confirmed only above 252 levels. Additionally, the stock is trading above its important moving averages, further reinforcing its bullish sentiment. Both the RSI and MACD indicators support the current strength in the stock's momentum. The resistance is placed at 275 level.

Strategy: Buy
Target: Rs 286
Stop loss: Rs 215

Riyank Arora, Technical Analyst at Mehta Equities 

Larsen and Toubro | CMP: Rs 3,379.45

Larsen and Toubro

The stock has found strong support at 3263.05, with volumes almost matching its 30-day average traded volume. Additionally, the RSI (14) has shown a significant uptick from lower levels, indicating an impending upmove towards 3475 and 3650.

Strategy: With an attractive risk-to-reward ratio and limited downside risk potential, L&T appears to be a good buy at current levels.
Target: Rs 3,475 - Rs 3,650
Stop loss: Rs 3,200

Mahindra & Mahindra | CMP: Rs 2,269.9

Mahindra & Mahindra

The stock experienced a robust all-time high breakout above its resistance of 2,256.75 and successfully closed above it. With Tuesday's session volume nearly 1.25 times its 30-day average, and the RSI (14) showing a significant uptick on daily charts, the overall momentum appears strong.

Target: Rs 2,400
Stop loss: Rs 2,225

HAL | CMP: Rs 4,074.7

HAL

The stock closed above its all-time high resistance mark of 4044.75 with Tuesday's session volume nearly 1.5 times its 30-day average. Reports indicate that UBS raised HAL's target price to Rs 5,200, and technically the stock broke out in a break-away gap fashion on its daily charts. With the stock also breaking out through its ascending triangle pattern formation, an upside towards 4,400 and above seems likely.

Target: Rs 4,400
Stop loss: Rs 4,000

Hero MotoCorp | CMP: Rs 5043.45

Hero MotoCorp

The stock has broken out strongly from an ascending triangle pattern formation and closed convincingly above its breakout level. With the overall positive outlook on auto stocks and the RSI (14) crossing the 70 mark, the momentum appears robust, and the stock is likely to move towards the potential target of 5500 and beyond.

Target: Rs 5,500
Stop loss: Rs 4,900

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