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Trade Spotlight: What should investors do with Balrampur Chini, Wipro & HDFC Bank?

Some of the stocks in focus were Balrampur Chini, which rose more than 9 percent, Wipro that gained more than 2 percent ahead of results, and HDFC Bank which closed with gains of over 2 percent on Thursday.

April 16, 2021 / 08:12 AM IST
 
 
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Indian market staged an impressive rebound in the second half of the trading session on Thursday. The rally helped Nifty50 to close above 14550 levels while the S&P BSE Sensex rose by more than 250 points.

Sectorally, buying was seen in metals, banks, power, energy, as well as oil & gas stocks while profit-taking was seen in auto, consumer discretionary, realty, and FMCG stocks.

Some of the stocks in focus were Balrampur Chini, which rose more than 9 percent, Wipro that gained more than 2 percent ahead of results, and HDFC Bank which closed with gains of over 2 percent on Thursday.

Here is what experts said about these stocks:

Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

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Balrampur Chini

On April 15, the stock made yet another all-time high of Rs 272. In this month alone, it has rallied by nearly 30 percent, and the important point is that the stock has not only surpassed its previous high of Rs 248.45, but comfortably managed to sustain above the same.

The sharp price surged surprised most of the traders. On the daily and weekly charts, the stock has formed a breakout pattern which is grossly positive for Balrampur Chini.

For the next few trading sessions, Rs 240-250 should be the trend decider level for the bulls, and if it sustains above the same, then we can expect a continuation of uptrend up to Rs 290.

Further, the uptrend may also continue which could lift the stock to Rs 305, On the flip side, if the stock trades below Rs 240, traders may prefer to exit out from long positions.

 Wipro

On the daily and weekly charts, the stock has formed expanding Triangle formation. Post the formation, the stock is hovering in the range of Rs 405 to Rs 445

The short-term texture suggests traders are waiting for either side breakout, currently, the stock is witnessing non-directional activity near 20 and 50-Days SMA.

For the bulls, Rs 450 would be the important breakout level to watch. And if the stock manages to close above the same, we can expect a quick uptrend rally towards Rs 485. On the flip side, trading below Rs 410 may increase further weakness up to Rs 390.

HDFC Bank:

Post strong uptrend rally from Rs 1342 to 1630, the stock is witnessing price correction. The consistent selling pressure between Rs 1650 to 1550 price zones clearly suggest bulls prefer to book profit near the resistance level.

On the daily charts, the stock has formed a lower top formation and currently, it is trading well below 50 and 20-Day SMA which suggests high chances of further weakness.

The weekly texture changed to sell on rallies from buy on dips. As long as HDFC Bank trades below Rs 1562, weakness is likely to continue in the medium-term.

However, in the short-term time frame, the stock completed the one leg of correction and reversed sharply from Rs 1350 retracement support level.

In the near future, if the stock succeeds to trade above Rs 1350 then we can expect a continuation of the pullback rally up to Rs 1475 to 1495. On the other side, trading below Rs 1350 could open one more leg of correction wave up to Rs 1290.

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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