Trade Spotlight: Tata Steel, HDFC, & Axis Bank Focus

Trade Spotlight: Tata Steel, HDFC, & Axis Bank Focus

Indian markets closed mixed on August 6 as investors preferred to stay away ahead of the crucial outcome of the MPC meeting. Many experts expect the Reserve Bank of India (RBI) to cut rates by up to 25 bps. Let’s look at the final level on the D-Street – the S&P BSE Sensex fell 24 points to 37,663, while the Nifty 50 rose 6 points to close at 11,101. Trends in global markets suggest that Indian markets will trade flat, but big moves could come as a result of the RBI policy meeting.

Experts believe that the Nifty may increase interest in 11,250 zones as long as it is above 11,050 zones, while there is negative support at 10,900-10,880 zones.

Stocks including HDFC Ltd, Tata Steel, and Axis Bank were in focus on Wednesday.

We have collated views of experts on what investors should do on August 6:

Expert: Ashish Chaturmohta Head of Technicals and Derivatives, Sanctum Wealth Management

Tata Steel: Stock could rally towards Rs 430-451 levels

The stock will move higher and higher on the daily chart from a low of Rs 262 from May. After consolidating over the past few sessions around the 200-day moving average, the stock has gained fresh momentum.

Up moves are looking for higher volumes indicating buy participation in the stock. The whole sector is also seeing interest.

Now, the stock is hovering around Rs 430 and above at Rs 451. In a negative situation, the recent break of Rs 378 serves as a support for the stock and below that, the next support appears at Rs 360.

HDFC Ltd: Stock will see a breakout above Rs 1,948 levels 

The stock has been trading in a wide range of 1,948-1,473 levels for over four months. However, in the last two months, the range has dropped to Rs 1,710-1,948.

Now, the price has bounced from the Rs 1,710 level and is above it. Above Rs 1,948, the stock will see a breakout and move towards the Rs 1,150 level. On the downside, a break of less than Rs 1,710 will take the stock to a low of Rs 1,473.

Axis Bank: Likely to trade between Rs 486-400 levels

For the last four months, the stock has been trading at an odd level of Rs 486-286 on the daily chart. This forms high lows, thus leading to an ascending triangle pattern on the daily chart.

Volumes also indicate a low level of stock accumulation. The price returned to the range again after an attempt to break in late July.

The rising support trend line around Rs 286-333 comes around Rs 402, which is now key support for the stock. Therefore, it is likely to trade between Rs 486-400 levels. The upside stock should stand above Rs 486 to reach the next resistance level of Rs 548 and Rs 580. Breaking below Rs 400 can be seen declining towards Rs 360.

Disclaimer: The perspectives and investment tips are given in this section are the expert’s own and not that of the website or its management. We encourage clients to check with certified experts before taking any position in the stocks/shares mentioned.  

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