trading ideas: Big Movers on D-St: What should investors do with HCL Tech, Mphasis and Hero MotoCorp?
Sectorally, selling was seen in IT, banks, metals, finance, and public sector stocks, while buying was visible in FMCG and Oil & gas names.
Stocks which were in focus include
, which fell nearly 3 per cent while hit a 52-week low, and which closed flat but with a positive bias.
Here’s what Jatin Gohil, Technical & Derivative Research Analyst at
Securities, recommends investors should do with these stocks when the market resumes trading today:
HCL Technologies: Hold
The stock again tested its medium-term support zone (Rs 890-877) and formed a bullish reversal pattern-Hammer on the daily chart.
The key technical indicators reversed from the oversold zone and are on the verge of a bullish crossover. We believe history will repeat itself, wherein the stock will witness a lower-level reversal.
has the potential to move towards Rs 964-987-1,000. On the lower side, its medium-term support zone will continue to work as a reversal point for the stock.
Mphasis: Hold
On the daily chart, the stock formed an indecisive pattern around its prior swing low (Rs 2,071) and is poised for a reversal.
Its hourly RSI witnessed a bullish divergence around its oversold zone and is on the verge of a positive cross-over.
As per the current set-up, the stock may respect that swing low. It may reverse and move towards Rs 2,350 initially and Rs 2,450 subsequently.
In case the stock violates its prior swing low convincingly, probable up-move will be negated.
Hero MotoCorp: Buy
After a higher level of reversal (from Rs 2,939 to Rs 2,756), the stock formed a base around its upward sloping 50-day EMA (Rs 2,765) and poised for a fresh up-move.
The key technical indicators are in favour of the bulls on near-term time frame charts. We believe the stock will respect its 50-day EMA.
Hero Moto has the potential to move towards Rs 2,950 initially and Rs 3,090 subsequently. On the lower side, its 50-day EMA will continue to work as a strong reversal point for the stock.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
