Buy, Sell or Hold: What should investors do with Dr Reddy’s Laboratories, Hero MotoCorp and TCS?

Indian market closed in the red on Wednesday tracking muted global cues. The S&P BSE Sensex fell over 300 points while the Nifty50 closed below 17300 levels.

Sectorally, buying was seen in metals, utilities, power, and oil & gas stocks while banks, finance, auto, and capital goods stocks saw some selling pressure.

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Stocks that were in focus include Dr Reddy’s Laboratories which closed with gains of over 2 percent, Hero MotoCorp fell over 1 per cent and TCS closed flat with a positive bias 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:

TCS: Buy

The counter is forming a triangle formation. It has retested its previous breakout level after hitting a fresh 52-week high of Rs. 4041.

On the upside, 3750 is a susceptible area. Above this, we can expect a run-up towards 3850+ levels in the near term. On the downside, Rs 3550 is major support at any correction.

Dr Reddy's Laboratories: Hold

The counter took support near the 200-Days SMA on the weekly chart. The chart is showing a reversal and it has already seen a sharp decline from the high levels of 5600.

On the upside, Rs 4400-4420 is an immediate resistance area, above this, we can expect a rally towards Rs 4800.

On the downside, Rs 3950 is an immediate demand zone. Most of the momentum indicators are showing positive divergence.

Hero MotoCorp: Avoid

The counter is forming a down-sloping channel formation and has also given a breakdown from a horizontal line around 2600 level.

The overall structure is looking weak as it trades below its all-important moving averages however it is having a demand zone near 2140.

On the upside, 2560-2580 has become an immediate resistance area; above this, we can expect a run-up towards 2700+ levels in the near term. On the downside, if it breaks the 2260 level then 2140 is the next support level.

(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.)