Buy, Sell or Hold: What should investors do with Tata Power, HDFC and HDFC Life?

It was a bloodbath on D-Street as bears took control and pushed benchmark indices below crucial support levels. The S&P BSE Sensex fell more than 1700 points while the Nifty50 failed to hold on to 17000 levels.

Sectoral selling pressure was seen in realty, metals, banks, finance, and telecom stocks. The S&P BSE Mid-cap index and the S&P BSE Small-cap indices were down 3-4 per cent respectively.

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Stocks that were in focus include Tata Power that closed with losses of over 5 per cent, HDFC Ltd fell over 5 per cent and HDFC Life hit a fresh 52-week low and closed with losses of more than 6 per cent on Monday.  

Here's what Jatin Gohil, Technical Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

Tata Power: Recommendation: Buy on dips | Target: Rs 260

After a sharp up-move took place between late-September 2021 and mid-October 2021 (i.e. from Rs131 to Rs 268), it oscillated in the wide range (Rs 255-205).

On 14 February 2022, the stock tested its long-term moving average 100-day SMA and erased partial intraday loss before closing the session.

Its daily RSI is negatively poised and tested the bull market support zone (40-33). In late-December 2021, its daily RSI (Relative Strength Index)reversed after testing the bull market support zone and supported a healthy rebound in the stock.

We believe history repeats itself and the stock will rebound after a near-term decline. On the lower side, the stock will find support around its psychological level Rs 200.

However, a stable move above its upper band of the range (Rs 255) will help it test its lifetime-high initially and explore uncharted territory subsequently.

HDFC Ltd: Recommendation: Sell on rise | Target: Rs 2,110

On 14 February 2022, the stock violated its medium-term support zone (Rs 2,380-2,354) and slipped to a 52-week low of Rs 2,290.

The key technical indicators are negatively poised on short-term and medium-term timeframe charts.

This could drag the stock towards Rs 2,190-2,155-2,110 in the medium-term. On the higher side, the stock will face hurdle around the Rs 2,450-2,500 zone.

HDFC Life: Recommendation: Buy on dips | Target: Rs 650

Continuing its prior falling trend the stock tested its medium-term support zone, which was placed around Rs 550.

Short-term major moving averages are sloping downwards on the medium-term timeframe chart, while long-term moving averages are sloping upwards.

Its medium-term technical indicators are negatively poised and tested dip oversold zone.

We believe the stock will rebound after a short-term decline. This could lead the stock towards Rs620 initially and Rs650 subsequently.

On the lower side, the stock will find support around Rs530-510 zone.

(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.)