Buy, Sell or Hold: What should investors do with Maruti Suzuki, HDFC and Dr Reddys Laboratories?
Stocks that were in focus include Maruti Suzuki that closed with losses of over 6 per cent, HDFC Ltd fell nearly 4 per cent and Dr Reddys Laboratories was down more than 5 per cent on Wednesday
Indian market bounced back in morning trade on Thursday after falling over 1 per cent in the previous trading session.
Sectorally, the action was seen in power, utilities, oil & gas, infra, and IT in intraday trade on Thursday.
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Stocks that were in focus include Maruti Suzuki that closed with losses of over 6 per cent, HDFC Ltd fell nearly 4 per cent and Dr Reddy’s Laboratories was down more than 5 per cent 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:
Maruti Suzuki: Buy
The counter has witnessed a breakdown from the Head & Shoulder pattern formation on the daily chart, but the overall structure looks lucrative as it trades above its 100, 200-Days SMA moving averages.
The stock has strong demand zone near Rs 7,750. On the upside, 8350 is an immediate resistance area, and above this, we can expect a run-up towards 8500+ levels in the near term.
On the downside, if it will break 7750 level then 7500 is the next critical zone.
HDFC Ltd: Avoid
The counter is forming down sloping channel formation and it has also given a breakdown from the horizontal line around 2350 level.
The overall structure is looking weak as it trades below its all-important moving averages; however, it is having a demand zone near 2170.
On the upside, 2350 has become an immediate resistance area, and above this, we can expect a run-up towards 2500+ levels in the near term.
On the downside, if it breaks the 2170 level then 2000 is the next support level.
Dr Reddy’s Laboratories:
The counter has witnessed a breakdown from the Head & Shoulder pattern formation on the weekly chart. The overall structure is distorted as it trades below its all-important moving averages however it is having a demand zone near 3600.
On the upside, 4000 is an immediate susceptible area; above this, we can expect a run-up towards 4200+ levels in the near term.
(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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