Buy, Sell or Hold: What should investors do with HDFC, Trent and ONGC?

Indian market closed in the green with gains of above 1 per cent for the second day in a row on Thursday. The S&P BSE Sensex rallied more than 1000 points while the Nifty50 closed just a shade below 17300 levels.

Sectorally, buying was seen in realty, consumer durables, energy, consumer discretionary while some selling was seen in IT stocks.

Stocks that were in focus include Trent which closed 7 per cent higher, HDFC Ltd rallied more than 5 per cent, and ONGC closed with gains of nearly 2 per cent on Thursday.

Here’s what Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:

Trent: Buy

This counter appears to have registered a consolidation breakout on large volumes. It was moving in a range of 1210 and 970 levels for the last 22 weeks.

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Moreover, with this breakout, this counter entered into an uncharted territory hinting at the resumption of a long-term uptrend.

Hence, if the stock sustains above Rs 1,187 levels then this counter can eventually head towards 1450 levels.

Therefore, positional traders are requested to adopt a two-pronged strategy of buying now and on dips preferably in the zone of 1230 – 1210 levels, and look for a higher target of 1447 levels.

A stop loss suggested for the trade is a close below Rs 1,200 levels.

HDFC Ltd: Buy

This counter seems to have registered a strong breakout from the down-sloping trendline on the short-term charts.

Hence, if the stock sustains above the bullish gap zone of the last session, present between 2346 and 2320 levels – then it should eventually retrace 62% of the last leg of the fall from the highs of 3021 to a low of 2046 levels.

Hence, fresh buying can be done around current levels with a stop below 2340 on a closing basis.

ONGC: Buy

This counter appears to have registered a tradable bottom around 160 levels, after the recent fall from the highs of 195.

The strong move of the last session as a follow-through to the Hammer formation can be hinting that it is positioning itself for a pullback rally.

Hence, if the stock sustains above 162 levels, then it can eventually head towards 182 levels. Therefore, positional traders are advised to buy into this counter with a stop below 160 levels and look for a target of 180.

Analyst disclosure: Neither I nor my clients own any of the scrips discussed above.

(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.)

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