Trade Spotlight: What should investors do with Tata Motors, HDFC Bank and KNR

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Trade Spotlight: What should investors do with Tata Motors, HDFC Bank and KNR Construction?



Indian market witnessed a massive second-day rally post the Budget 2021 pushing benchmark indices beyond crucial resistance levels on February 2. Mild profit-taking was seen towards the close of the trade but experts feel that the bulls run is intact.

The S&P BSE Sensex closed with gains of about 1,200 points while the Nifty50 rose more than 360 points above 14,600 levels.

Stocks like Tata Motors rose more than 15 percent, HDFC Bank rallied more than 5 percent to a fresh 52-week high while KNR Construction rose by about 10 percent were some of the stocks in focus on Tuesday.

We have collated views of experts on what investors should do when the market resumes trading on February 3:

Fortunes of investors may be changing in this counter as it appears to have got its mojo back after a huge underperformance for a period of around 5 years with almost 90% value erosion from the highs of 598 registered in the year 2016 to a March 2020 low of 63.

Since then it seems to have embarked on a medium-term uptrend of its own as the rally sustained for around 10 months. It recouped almost 50% of the losses from the year 2016 highs of 598.

Long-term investors should continue to remain invested for a bare minimum target of 390 and beyond that much higher levels can't be ruled out.

However, fresh buying opportunity shall arise on dips into the zone of 300 – 290 levels. Short term traders shall either book out as the rally, in the last two sessions, from the lows of 255 – 312 seems to have overdone or hold with a stop below 290 on a closing basis.

HDFC Bank:

This counter appears to have registered a fresh breakout after a 15-week consolidation in a zone of 1464 – 1345 levels. This breakout itself is projecting a target of around 1580 is more or less achieved in Tuesday's session.

Moreover, in the last 2 sessions of the up move from the lows of 1400 to 1578 seems to have stretched and hence can invite profit booking in next one or two trading sessions.

For the time being fresh buying shall be considered only on a corrections 1500 levels whereas positional traders withholding period of a couple of weeks more can look for a higher target present in the zone of 1640 – 1670 levels by placing a stop below 1490 on a closing basis.KNR Construction:
This counter registered a fresh breakout from the 53-Days old ascending channel with multiple touchpoints. This channel breakout is projecting a target of 464 which seems to have achieved in the last trading session itself.

Moreover, this counter may remain vulnerable for profit-taking as it has rallied from the lows of 369 to a high of 481 in just two trading sessions and an intraday fall of almost 10% from the highs of 481 is already pointing towards profit booking. Hence, it looks prudent on the part of traders to exit in the next session.

Disclaimer: The views and investment tips expressed by 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.

Source : https://www.moneycontrol.com/news/business/markets/trade-spotlight-what-should-investors-do-with-tata-motors-hdfc-bank-and-knr-construction-6436411.html/amp