Trade Spotlight: HCL Tech, M&M, HAL & VST Tillers in focus

Indian market witnessed mild profit-booking at higher levels on August 12 but buying near 5-Days EMA helped Nifty recoup losses and close above 11,300 levels.

Experts advise caution at higher levels, but if the Nifty50 holds on to 11,300 levels, a bounce-back towards 11,380-11,400 levels is possible.

“Wednesday’s fall in the market was more of a reaction following the overnight fall in the US market. Currently, our market lacks strong buying conviction as interest wanes away at higher levels,” Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities told Moneycontrol.

“On Thursday or in the next few days, Nifty must cross the 11,380 levels otherwise the index could slip as low as 11,100 or 11,000. However, if the Nifty 50 index reaches 11,350/11,360 levels, it would be advisable to book profit on a long position or reduce leveraged positions,” he said.

More than 100 stocks on the BSE hit their fresh 52-week high that includes names like HCL Technologies, HAL, M&M, VST Tillers, GMM Pfaudler, Vaibhav Global, VST Tillers, and Orissa Minerals.

We have collated views of an expert on what investors should do when the market resumes trading on August 13:

Expert: Ashish Chaturmohta Head of Technicals and Derivatives, Sanctum Wealth Management

HCL Technologies Ltd: Stock can move towards Rs 780 | Support Rs 675

The stock has been in an uptrend forming a higher top and higher bottom on the daily chart since March low of Rs 375. In the process, it crossed its previous all-time of Rs 623 with momentum and high volumes.

After the last rally, the stock was sideways for the last couple of weeks. Thus, leading to a bullish pole and flag pattern on the daily chart.

In Wednesday’s session, it saw a breakout and resumed its uptrend with long body bullish candle with volumes indicating buying participation in the stock.

The Relative Strength Index (RSI) has given a positive crossover with its average on the daily chart. On the upside, the stock can move towards Rs 780 and then possibly towards Rs 840 levels.

On the downside, the recent low of Rs 675 will act as support for the stock, and a break below it correction can be seen.

Hindustan Aeronautics Ltd: A breakout above Rs 1,000 will act as support

The stock was in a downtrend since its listing in 2018 around Rs 1,150 to low of Rs 470 in March this year. In the last five months, the stock has rallied from the lows on high volumes and strong momentum.

It has formed a base below Rs 1,000 levels and has given a breakout on the upside. Now, the stock can test its all-time high of Rs 1,185 and probably head higher towards Rs 1,300 levels. On the downside, a breakout level of Rs 1,000 will act as support for the stock.

M&M: Price needs to sustain above Rs 600-590 support levels

The stock has been in a steady uptrend forming a higher top and higher bottom on the daily chart since its March low of Rs 245.

Volumes were high at lower levels indicating accumulations at lower levels. Price has crossed 50 percent (Rs 620) of the major decline from Rs 993 to Rs 245. It has also crossed the resistance zone around 600 levels.

Thus, we can expect the price to move towards the next resistance level of Rs 710. On the downside, the price needs to sustain above Rs 600-590 support levels for stock to move higher.

VST Tillers: Price can move towards Rs 1,840 and Rs 1,970 levels

Since March low of Rs 588, the stock has been in an uptrend forming a higher top and higher bottom on the daily chart. Volumes have been high on upmove indicating buying participation in the stock.

Earlier, Rs 1,300-1,400 zone was acting as a resistance for the stock indicating as supply zone. Now after 6-7 weeks of narrow consolidation below this resistance stock has seen a breakout on the upside with volumes and momentum.

Thus, the stock has formed a base at lower levels and has seen a breakout on the upside. Now price can move towards Rs 1,840 and Rs 1,970 levels. On the downside Rs 1,450 and Rs 1,350 will act as support for the stock.

InterGlobe Aviation: Support for the stock is seen at Rs 925 and Rs 875 levels

The stock witnessed a sharp decline from the all-time high of Rs 1898 to Rs 800 odd levels in March. Since then, the stock is seeing a bounce back from Rs 875-800 odd zone on multiple occasions indicating a strong support zone and value area for the stock.

On Wednesday, the stock has seen a bounce back from the lower end with a long body bullish candle and high volumes indicating buying participation at lower levels.

Price has moved above the upper Bollinger band with the expansion of bands on the daily chart. Price has moved above 100-day moving average which was acting as resistance for the stock.

Now, the stock can move towards Rs 1180-1210 where 200-day moving average and June swing high is seen. Support for the stock is seen at Rs 925 and Rs 875 levels.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.