3 Nifty50 stocks near their fresh 52-week low; check what experts advice on them

As the markets priced in a less favorable election result for the NDA government, Sensex and Nifty saw sharp one-day losses in four years after previous day's stellar run. Furthermore, as the counting for the Lok Sabha polls  progressed and entered the final phase, Nifty at the close ended near the day's low at 21,884.5, down 5.93 per cent or 1,379.4 points. At the day's low, the blue-chip index fell as much as 8.5 per cent to 21281.45. In the afternoon session, there was seen some recovery but that did not last for long as another round of selling in the last session dragged the Index lower to end the session with a massive cut of 1379.40 points at 21,884.50. Amid the steep losses, investors wealth eroded by a significant Rs 30 lakh crore. 

On the daily chart, the Index has formed a massive red candle which suggests extreme pessimism in the markets and the impact of counting is likely to persist tomorrow as well. The immediate support is located at 21,600 while a level of 22,500 will be a strong hurdle, noted Aditya Gaggar- Director of Progressive Shares.

Amid such a market mood, the Nifty 50 index, a diversified 50 stock index accounting for 13 sectors of the economy, saw 37 constituents ending with losses, while 13 stocks registered advances.

HUL, Britannia and Nestle India from the FMCG space led the list of winners on the D-Street defying the overall market mood. While others that supported the index included stocks like Hero MotoCorp, Cipla, Tata Consumer Products on the other hand.

Nevertheless, given the steep losses that continued to weigh on the street in the backdrop of ambiguity due to results falling short on the exit polls, some 3 Nifty 50 counters hit their fresh 52-week low, and these are LTIMindtree, HDFC Life Insurance and Bajaj Finserv.

The IT services and consulting services firm after hitting a fresh 52-week low of Rs 4,513.55 in intraday trade recouped some of the losses and ended lower by 0.4 per cent at Rs 4,630.65. Meanwhile, HDFC Life Insurance also hit a fresh 52-week low of Rs 511.4 and ended relatively higher at Rs 534.45, down nearly 3 per cent. Also, Bajaj Finserv marked its fresh 52-week low of Rs 1,419.05, nevertheless it ended at Rs 1,477.3 with a drag of over 6 per cent.

Should you bet on these Nifty 50 stocks that hit their 52-week low levels?

Suman Bannerjee, CIO, Hedonova remarked that though the 52-week lows of HDFC Life, Bajaj Finserv, and LTIMindtree may appear attractive, we advise caution.  He adds that these dips might offer good entry points for long-term investors, but short-term gains may require patience for recovery. By evaluating current market conditions, the underlying causes of the stock price drops, and your investment goals, you can make a well-informed decision regarding HDFC Life, Bajaj Finserv, and LTIMindtree.

On HDFC Life, Kunal Kamble, Sr. Technical Analyst at Bonanza Portfolio remarked that a double pattern formation is witnessed in the stock. In the shorter period, a falling wedge has formed, with the price trading at the lower trend line. In the longer period, the security has formed an Inverse Cup and Handle pattern, with the price trading close to its neckline. A breakdown below the neckline would lead to a sharp fall in the security. The price has given a rejection from the 50 EMA, which will act as resistance for the stock. Increasing volume during the fall indicates that sellers are overpowering buyers. A close below 500 would lead to the price further falling towards 455, followed by 385.

For Bajaj Finserv, he said that the stock has given a breakdown of the Descending Triangle pattern. The price target for the pattern is near Rs1342. The price had a shortfall during the formation, which confirmed a breakdown in the security. The price has faced rejection at the 50 EMA, which will act as resistance. The increase in volume during the breakdown indicates that sellers are overpowering buyers. The RSI is trading in the southern zone, indicating a downtrend in the security.

In the case of LTIMindtree, the analyst said that the stock has established an inverted hammer pattern has at the rising trend line. An Inverted Hammer pattern is a short-term reversal pattern. The next day close above the high would lead to a change in the short-term trend of the security. Divergence between the price and RSI also indicates that the security at the current rate can be expected to remain flat or bounce, he noted.