Trade Spotlight | Your strategy for HDFC Bank, L&T Technology Services, HPCL today – Moneycontrol

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The market is expected to consolidate further with possibly taking a support at 50-day EMA (exponential moving average placed at 19,540), while the 19,800-20,000 area may act as a hurdle on the higher side in the coming sessions, experts have said. On September 21, the benchmark indices extended downtrend for the third consecutive session, with back-to-back gap down moves. The Nifty50 dropped 159 points to 19,742, and the BSE Sensex tanked 571 points to 66,230, while the Nifty Midcap 100 and Smallcap 100 indices were down 0.9 percent and 1.3 percent, respectively on weak breadth.
The Nifty Bank played crucial role in market’s downtrend for the last two sessions, falling 760 points to 44,624 and formed a long bearish candlestick pattern on the daily scale, while the Nifty IT continued to consolidate, down by 29 points to 32,920.
Stocks that fared better than broader markets and equity benchmarks included HDFC Bank, L&T Technology Services, and HPCL. HDFC Bank has formed a Doji or High Wave kind of pattern on the daily timeframe, after significant correction in the previous two sessions, which could possibly indicate oversold levels. The stock fell 0.66 percent to end at Rs 1,553, after testing the lowest level since March 16 during the day.
L&T Technology Services rose 1.1 percent to Rs 4,660 and formed decent bullish candlestick pattern on the daily charts, with above average volumes, after weakness in the previous three sessions. The stock still holds the low of September 13, coinciding with the 20-day EMA (exponential moving average), which may act as a support.
HPCL has formed a long bullish candlestick pattern on the daily timeframe, with above average volumes, continuing an uptrend for three days in a row, but still within the robust bearish candlestick pattern formed on September 12. The momentum indicator RSI (relative strength index) showed bullish crossover with above 50 levels. The stock rose 2.2 percent to Rs 263.5.
Here’s what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today.
HDFC Bank
On the daily scale, the stock had been in a downtrend. Therefore, it is currently into an oversold territory and available near its demand area. The texture of the chart formation on daily and weekly time frame along with technical indicator RSI (relative strength index) is indicating at pullback rally, which could lead to a new leg of the uptrend from its demand zone.
In the near term, Rs 1,500 would be the immediate support zone for the stock. Above the same, the upward rally could continue towards Rs 1,670 levels.
Hindustan Petroleum Corporation
After sharp decline from the higher levels, the counter is in the accumulation zone where it was trading in a rectangle formation. However, on the daily charts there is a gradual up move in the counter along with incremental volume activity, which suggest a new leg of bullish trend in the near term.
Unless it is trading below Rs 250 positional traders retain an optimistic stance and look for a target of Rs 280.
L&T Technology Services
The stock has shown a remarkable up move in the last few weeks. The stock is trading in a rising trend continuously and forming the higher lows series. The strong bullish momentum on daily and weekly scale suggest that the counter is likely to maintain bullish continuation chart formation in the coming horizon.
As long as the counter is trading above Rs 4,480 the bullish formation is likely to continue. Above which, the counter could move up to Rs 4,980.
Disclaimer: The views and investment tips expressed by investment 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.
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