In today’s fast-paced financial landscape, making informed decisions about stock investments is crucial. Rajesh Palviya, Senior Vice President of Technical and Derivatives Research at Axis Securities, offers valuable insights and recommendations on three noteworthy stocks: HCL Technologies Ltd, Colgate Palmolive (India) Ltd, and Hitachi Energy India Ltd.
Market Overview
The domestic equity market, represented by benchmark indices such as the Sensex and Nifty 50, commenced Friday’s session with slight declines amid mixed global cues. The Sensex opened lower by 210.51 points or 0.29%, while the Nifty 50 saw a decline of 81.90 points or 0.37%. Despite the market’s recovery from Wednesday’s downturn, challenges persist, including the surge in US bond yields and the rise in brent crude prices.
Market Outlook
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, suggests that the recent market recovery may be short-lived due to external factors. Investors are closely monitoring stress test results from mutual fund schemes with mid- and small-cap sizes, which are expected to be released today.
Nifty 50 Analysis
Over the past four weeks, the Nifty 50 index has demonstrated a sideways trend within the range of 22,500–21,800 levels. This consolidation is supported by the 50-day Simple Moving Average (SMA) at 21,888, serving as a critical support zone. However, any breach of this level could signal a trend reversal towards 21,500–21,300 levels. Rajesh Palviya highlights the “negative divergence” observed in the weekly timeframe, indicating potential profit booking in upcoming sessions.
Stock Recommendations
1. HCL Technologies Ltd
- Technical Analysis: HCL Technologies has experienced a breakout above a downsloping trendline with substantial volumes, indicating a bullish trend. The stock remains comfortably above key moving averages, reinforcing positive sentiments.
- Recommendation: Investors are advised to buy, hold, and accumulate HCL Technologies with an expected upside target of ₹1,750–1,800 and a downside support zone of ₹1,650–1,600.
2. Colgate Palmolive (India) Ltd
- Technical Analysis: Colgate Palmolive exhibits a robust uptrend, supported by the recapture of key moving averages and increased momentum. Rising volumes and options data suggest strong support and resistance levels.
- Recommendation: Investors should consider buying, holding, and accumulating Colgate Palmolive with an expected upside target of ₹2,800–2,950 and a downside support zone of 2,560-2,500 levels.
3. Hitachi Energy India Ltd
- Technical Analysis: Hitachi Energy India has confirmed a continuation pattern breakout with significant volumes, indicating a strong uptrend. The stock remains well-positioned above crucial moving averages, signaling rising strength.
- Recommendation: Investors are encouraged to buy, hold, and accumulate Hitachi Energy India with an expected upside range of ₹6,970–7,430 and a downside support zone of 6,300-6,150 levels.
Rajesh Palviya’s expert recommendations provide investors with valuable insights into navigating the complexities of the stock market. By leveraging technical analysis and market trends, investors can make informed decisions to optimize their investment portfolios and capitalize on potential opportunities.
