Buy, Sell or Hold: What should investors do with Dr Reddys Laboratories, Hero MotoCorp and TCS?
Heres what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today.
Indian market closed in the red on Wednesday tracking muted global cues. The S&P BSE Sensex fell over 300 points while the Nifty50 closed below 17300 levels.
Sectorally, buying was seen in metals, utilities, power, and oil & gas stocks while banks, finance, auto, and capital goods stocks saw some selling pressure.
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Stocks that were in focus include Dr Reddy’s Laboratories which closed with gains of over 2 percent, Hero MotoCorp fell over 1 per cent and TCS closed flat with a positive bias on Wednesday.
Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:
TCS: Buy
The counter is forming a triangle formation. It has retested its previous breakout level after hitting a fresh 52-week high of Rs. 4041.
On the upside, 3750 is a susceptible area. Above this, we can expect a run-up towards 3850+ levels in the near term. On the downside, Rs 3550 is major support at any correction.
Dr Reddy's Laboratories: Hold
The counter took support near the 200-Days SMA on the weekly chart. The chart is showing a reversal and it has already seen a sharp decline from the high levels of 5600.
On the upside, Rs 4400-4420 is an immediate resistance area, above this, we can expect a rally towards Rs 4800.
On the downside, Rs 3950 is an immediate demand zone. Most of the momentum indicators are showing positive divergence.
Hero MotoCorp: Avoid
The counter is forming a down-sloping channel formation and has also given a breakdown from a horizontal line around 2600 level.
The overall structure is looking weak as it trades below its all-important moving averages however it is having a demand zone near 2140.
On the upside, 2560-2580 has become an immediate resistance area; above this, we can expect a run-up towards 2700+ levels in the near term. On the downside, if it breaks the 2260 level then 2140 is the next support level.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
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