Trade Spotlight: What should investors do with DLF, JBM Auto and Bajaj Finserv?

Stocks like DLF rose more than 4 percent to hit a fresh 52-week high on January 19, while JBM Auto rallied more than 9 percent. That apart, Bajaj Finserv gained more than 9 percent ahead of quarterly results on January 20.

January 20, 2021 / 08:00 AM IST
 
 
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The benchmark indices snapped a two-day losing streak and rallied more than 1.5 percent each on January 19, following positive global cues, and expectations of a pro-growth Budget.

The S&P BSE Sensex rallied by more than 800 points while the Nifty50 rose more than 230 points in a single trading session.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 834 points to 49,398 while the Nifty50 closed with gains of 239 points to 14,521.

Stocks like DLF rose more than 4 percent to hit a fresh 52-week high while JBM Auto rallied more than 9 percent. That apart, Bajaj Finserv, which gained more than 9 percent ahead of quarterly result on January 20, were some of the stocks that hogged the limelight during the trade.

We have collated views of experts on what investors should do when the market resumes trading on January 20:

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Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

DLF: Buy| Target: Rs 348| Stop Loss: Rs 277

This counter appears to have embarked on a medium-term uptrend as it cleared its critical resistance present in the zone of Rs 270 – Rs 287 levels on the long-term charts.

Ideally, post this breakout, if the stock sustains above Rs 277 levels, a much bigger and sustainable rally shall unfold as this counter was in a long-term downtrend with a lifetime high of Rs 1,225 levels registered way back in the year 2008.

Hence, positional traders shall buy into this counter and look for an initial target of Rs 348. A stop-loss suggested for the trade is a close below Rs 277.

Bajaj Finserve: Buy| Target: Rs 9265| Stop Loss: Rs 8400

A strong recovery of the last session is hinting that this counter might have bottomed out at last Monday’s low of Rs 8,273 where it also tested its 55-day exponential moving average (EMA).

Hence, as long as this counter sustains above Rs, 8400 levels, one should remain optimistic and look for an initial target of Rs 9,265 where some hiccups can be witnessed.

However, as momentum is looking strong if that resistance is cleared then it should pave the way for test of life time highs present around Rs 9,450.

Therefore positional traders are advised to buy now and be ready to add further on a dip into the zone of Rs 8,650 – Rs 8,550 levels and look for a target of Rs 9,400. A stop-loss suggested for the trade is a close below Rs 8,400.

JBM Auto: Buy| Target: Rs 397| Stop Loss: Rs 326

This counter registered a breakout on relatively higher volumes on Monday after a minor consolidation of seven days in the range of Rs 330 – Rs 305 levels.

Moreover, in the last trading session, the intraday dip towards Rs 326 was lapped up by bulls on higher volumes which appears to have resulted in some sort of bullish reversal formation hinting at a strong upwardly biased momentum that can propel it to higher levels.

Hence, traders are advised to adopt a two-pronged strategy of buying now and adding further on dip, if any, in the zone of Rs 340 – Rs 333 levels and look for a bigger target of Rs 397. Stop suggested for the trade is a close below Rs 326 levels.

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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