Trade Spotlight: What should investors do with Tata Motors, HDFC Bank and KNR Construction?

We have collated views of experts on what investors should do when the market resumes trading on February 3:

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

Tata Motors:  

Fortunes of investors may be changing in this counter as it appears to have got its mojo back after a huge underperformance for a period of around 5 years with almost 90% value erosion from the highs of 598 registered in the year 2016 to a March 2020 low of 63.

Since then it seems to have embarked on a medium-term uptrend of its own as the rally sustained for around 10 months. It recouped almost 50% of the losses from the year 2016 highs of 598.

Long-term investors should continue to remain invested for a bare minimum target of 390 and beyond that much higher levels can’t be ruled out.

However, fresh buying opportunity shall arise on dips into the zone of 300 – 290 levels. Short term traders shall either book out as the rally, in the last two sessions, from the lows of 255 – 312 seems to have overdone or hold with a stop below 290 on a closing basis.

HDFC Bank:

This counter appears to have registered a fresh breakout after a 15-week consolidation in a zone of 1464 – 1345 levels. This breakout itself is projecting a target of around 1580 is more or less achieved in Tuesday’s session.

Moreover, in the last 2 sessions of the up move from the lows of 1400 to 1578 seems to have stretched and hence can invite profit booking in next one or two trading sessions.