Trade Spotlight: What should investors do with Bajaj Auto, Tata Motors & MindTree?

Bajaj Auto which hit its fresh 52-week high closed flat, Tata Motors rose more than 6 percent while MindTree closed with gains of more than 6 percent.

January 21, 2021 / 08:25 AM IST
 
 
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Bulls pushed the market to fresh record highs on Wednesday. The S&P BSE Sensex hit a high of 49,874 while the Nifty50 inched closer towards 15,000 to hit a high of 14,666.

The S&P BSE Sensex closed with gains of nearly 400 points at 49,792 while the Nifty50 was up 123 points to 14,644 on Wednesday.

Sectorally, the action was seen in auto, IT, energy, industrials, and consumer discretionary stocks while profit-taking was seen in FMCG, and telecom space.

Bajaj Auto which hit its fresh 52-week high closed flat, Tata Motors rose more than 6 percent while MindTree closed with gains of more than 6 percent.

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We have collated views of experts on what investors should do when the market resumes trading on January 21:

Expert: Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking Ltd

Bajaj Auto - Hold

The Nifty Auto index has been forming a ‘Higher Top Higher Bottom’ structure and is in an uptrend for the last few months. The two-wheeler space has witnessed a good buying interest and Bajaj Auto has seen good momentum over the last few months.

On the daily charts, the intermediate corrections have been bought and as the stock approaches its 20-Days EMA, we again see a resumption of the uptrend.

Hence, till this structure is intact, traders should continue to ride the trend. The near-term support for the stock is placed around Rs 3500 while the probable targets are seen around Rs 3820 and Rs 4000.

Tata Motors - Hold

This stock has caught everyone’s attention due to its sharp run-up in the last few weeks. The recent price up move has been backed by increasing volumes which is a good sign.

The RSI oscillator on the short term charts is in an overbought zone, but there are no signs of any weakness in prices. Hence, traders should continue to hold the stock and continue to ride this trend.

In such trending times, the corrections are usually short-lived. Hence, any corrections would be a buying opportunity. The immediate supports for the stock are now placed around Rs 263 and Rs 250 and the stock could approach Rs 290-295 in the short term.


MindTree - Hold

The IT stocks are on a roll and have seen a sharp run-up in the last few months. Along with other IT names, MindTree has seen a gradual up move and has provided good returns to investors.

The stock is trading at its all-time high and since there are no signs of any reversal, the trend is likely to continue. Hence, traders should continue to hold the stock with a stop loss now placed below its support of Rs 1650.

Disclaimer: The views and investment tips expressed by 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.

Kshitij Anand is the Editor Markets at Moneycontrol.

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