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Trade Spotlight: What should investors do with India Cement, Bank of Baroda & HDFC Bank?

Stocks like India Cement fell more than 5 percent, Bank of Baroda fell more than 9 percent, and HDFC Bank was down by nearly 3 percent were some of the stocks in focus.

January 29, 2021 / 08:06 AM IST
 
 
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Indian market witnessed another day of sell-off on January 29, the F&O expiry day, pushing both Sensex and Nifty50 towards crucial support levels.

The S&P BSE Sensex recouped some losses but still dropped over 500 points while the Nifty50 fell more than 100 points.

Sectorally, selling pressure was seen in realty, IT, FMCG, auto, and healthcare stocks while some buying was seen in oil & gas, telecom, banks, and consumer durables.

Stocks that were in focus included India Cement which fell more than 5 percent, Bank of Baroda (down over 9 percent), and HDFC Bank (3 percent).

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We have collated views of experts on what investors should do when the market resumes trading on January 29:

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

India Cement: Strong possibility of a fresh uptrend rally

The stock has registered a sharp price surge in the recent past but after the breakout above Rs 170, it failed to sustain at higher levels and due to consistent selling pressure it slumped over 15 percent.

Over the last couple of weeks, the stock has been volatile and the texture of the chart suggests that it will remain volatile for the next few trading sessions.

However, the medium-term structure of the stock is still on the positive side and is likely to continue in the near term.

In addition, on daily and weekly charts, the stock still maintains higher bottom series which is broadly positive for India Cement.

Currently, the stock is trading near 50-Days SMA, and the daily and weekly structure of the stock clearly suggest a strong possibility of a fresh uptrend rally from current levels.

Bank of Baroda: Exit longs on a close below Rs 63

After registering a breakout above Rs 70, the stock quickly rallied up to 80.80, but due to extremely weak market conditions, the stock witnessed selling pressure at a higher level.

The correction was steep and price dominating. However, the larger texture of the Bank of Baroda is still in the positive side.


For positional traders, the level of Rs 63 or 50-Days SMA should be the key support level. If the stock manages to trade above the same then we can expect a fresh uptrend wave till Rs 75. On the flip side, if it closes below Rs 63, traders may prefer to exit out from trading long positions.

HDFC Bank: Contra traders can take long bets

Over the last couple of weeks, the stock is witnessing a price correction. So far this week, the stock has corrected over 5 percent. The sharp sell-off from its all-time high level clearly indicates that bears are in total control and the price correction likely to continue in the near future.

In addition, on weekly charts, the stock has formed a strong bearish candle indicating further weakness from current levels.

In the short run, Rs 1450 should be an important resistance level. Below the same correction wave will continue up to Rs 1325-1300. Contra traders can take a long bet near Rs 1300 level with Rs 1250 support stop loss.

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.
first published: Jan 29, 2021 08:06 am

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