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The BSE Sensex surged nearly 592 points, and the Nifty reclaimed the 25,000 mark on Monday, driven by strong global market trends. Among the key stocks in focus were Reliance Industries (RIL), HCL Tech, and HDFC Life, which saw gains of 0.047%, 1.4%, and 2.4%, respectively.
Here’s what Kushal Gandhi, Technical Analyst at StoxBox, advises investors to do with these stocks as the market opens today:
RIL (Reliance Industries)
RIL’s stock is trading within a tight 15% range, showing no clear direction. The key support area lies between ₹2,810-₹2,705, acting as a demand zone. Since the stock is currently below its 200-day moving average (MA), it is essential to hold this support to avoid potential losses. With quarterly results coming soon, the stock’s movement will likely be influenced by the outcome.
The risk-to-reward ratio is favorable, but caution is advised due to weak relative strength compared to Nifty50, lower earnings-per-share (EPS) strength, and weaker buyer demand. Gandhi suggests waiting for the stock to break above the 200-day MA, which serves as resistance around ₹2,912, before considering a buy.
HCL Tech
HCL Tech is showing signs of strong market leadership. The stock recently broke out of a bullish pattern, indicating more potential for accumulation. Its relative strength compared to Nifty50 is improving, and lower volatility makes erratic price movements less likely. The stock’s momentum is solid, with key support in the ₹1,810-₹1,790 zone, where the 20-day moving average also sits.
With the company set to announce its quarterly earnings, a positive report could further boost its stock. Gandhi recommends buying HCL Tech, targeting ₹2,040, with a stop loss at ₹1,766.
HDFC Life
HDFC Life recently experienced a 9% pullback after a strong 49% rally from its June 2024 lows. The stock appears to have strong investor support, minimizing its downside risk. A bullish breakout from a double-bottom pattern suggests a potential trend reversal.
The stock’s relative strength compared to Nifty50 has improved, and lower volatility signals stability. With the 50-day moving average acting as support, this presents a good risk-to-reward opportunity. Gandhi suggests buying HDFC Life, targeting ₹820, with a stop loss at ₹703.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
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