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Trade Spotlight: What should investors do with HDFC Life, Kajaria, & Marico?

Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today

September 03, 2021 / 08:09 AM IST
 
 
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Indian market bounced back on Thursday with benchmark indices gaining by about 1 percent. The S&P BSE Sensex rallied by over 500 points while the Nifty50 closed above 17200 levels.

On the BSE, IT, FMCG, and Realty indices rose 1 percent each while mild profit-taking was seen in auto, and oil & gas.

Stocks that were in focus include HDFC Life which rose over 5 percent, Kajaria Ceramics and Marico which both rose about 3 percent.

Here's what Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:

Kajaria Cements

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After Rs 1050 range breakout, the stock consistently formed a higher high and higher low series formation which is broadly positive for Kajaria Ceramics Ltd.

The texture of the chart suggests uptrend formation is likely to continue if the stock succeeds to trade above Rs 1150 support level.

Unless it starts trading below Rs 1050 or 10-Days SMA positional traders retain an optimistic stance and look for a target of Rs 1280-1350.

Fresh buying can be considered now and on dips if any between Rs 1200-1180 levels with a stop loss below Rs 1050.

HDFC Life

The stock rallied over 6  percent on September 1. It stock opened with gap up and quickly surpassed Rs 735  resistance mark with strong volume activity.

Post breakout the entire day it was trading above resistance level which is broadly positive for the HDFC Life Ltd.  In the short term time frame, the stock has formed a strong price volume breakout pattern.

The structure of the pattern suggests breakout action will continue in the near future if the stock succeeds to trade above Rs 535 level.

For the swing traders, Rs 535 should be the sacrosanct level, trading above the same we can expect an uptrend continuation wave up to Rs 780-800.

Marico

This week so far, the stock rallied over 7 percent. On September 2, Marico Ltd made a fresh all-time high of Rs 572 and after a strong intraday session stock was closed above Rs 550 resistance mark, which is grossly positive.

Modest volume activity post-breakout also supports a further uptrend from current levels. On the daily and weekly charts stock has formed a strong promising price volume breakout formation that indicates bulls are clearly dominating the price action.

For the trend following traders Rs 550 and 540 would be the key levels to watch, the overall chart structure suggests if the stock sustained above the same then breakout continuation texture is likely to continue up to Rs 600.

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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