HDFC Sec’s Buy Recommendation: Tech Mahindra Offers 14% Upside Potential
The Nifty index fell for the third consecutive session, closing at 22,302, and experienced a correction of over 550 points from its all-time high of 22,794 within three trading sessions. Mahindra Although it lost 0.62% today, the Nifty managed to close above its 50-day EMA support at 22,240. Further declines could lead the index to slide down to 22,166, which represents a 61.8% retracement of the rally from 21,777 to 22,794.
On the higher end, the resistance band ranges from 22,500 to 22,600. Nifty Smallcap and Microcap indices have started to underperform and look relatively weak on the chart, so traders should approach these segments with caution.
HDFC Sec’s Buy Recommendations for Oil India and Tech Mahindra
HDFC Sec identifies two promising stocks with up to 14% upside potential: Oil India and Tech Mahindra. Let’s explore their recommendations:
Buy Oil India (634): Target Rs. 725, Stop-loss Rs 590
Oil India has been consolidating within a narrow range over the past six sessions. Its primary trend is bullish, forming higher tops and bottoms. The stock remains above all major moving averages, indicating a positive trend across all time frames. Indicators and oscillators suggest ongoing strength in the current uptrend.
Buy Tech Mahindra (1,293): Target Rs. 1380, Stop-loss Rs 1,215
On April 26th, Tech Mahindra broke out from a downward sloping trend line on the daily chart, accompanied by a rise in volumes. After the breakout, the stock experienced a correction and found support in a gap on the daily chart. Following this support, the stock resumed its primary uptrend. Indicators and oscillators on the daily chart have turned bullish.
Both Oil India and Tech Mahindra present opportunities for investors to capitalize on potential upside in the current market. As always, investors should consider their risk tolerance and conduct further research before making investment decisions.
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FAQ: HDFC Sec’s Recommendations for Oil India and Tech Mahindra
What upside potential does HDFC Sec predict for Oil India and Tech Mahindra?
HDFC Sec predicts up to 14% upside potential in both Oil India and Tech Mahindra.
Why is Oil India considered a strong buy recommendation by HDFC Sec?
Oil India has been consolidating in a narrow range, with a bullish primary trend forming higher tops and bottoms. The stock is above major moving averages, indicating a strong uptrend supported by positive indicators and oscillators.
What is HDFC Sec’s target and stop-loss for Oil India?
HDFC Sec’s target for Oil India is Rs. 725, with a stop-loss of Rs. 590.
What factors contributed to Tech Mahindra’s breakout?
On April 26th, Tech Mahindra broke out from a downward sloping trend line on the daily chart, accompanied by increased volumes. The stock then corrected and found support in a gap on the daily chart, resuming its primary uptrend.
What is HDFC Sec’s target and stop-loss for Tech Mahindra?
HDFC Sec’s target for Tech Mahindra is Rs. 1380, with a stop-loss of Rs. 1,215.
What should traders be cautious about in the current market?
Traders should remain cautious of Nifty Smallcap and Microcap indices, which are underperforming and look relatively weak on the chart.
What levels should traders watch out for in the Nifty index?
Traders should watch out for a possible slide down to 22,166 if the Nifty index closes below 22,240. On the higher end, resistance levels range from 22,500 to 22,600.
How should investors approach HDFC Sec’s recommendations?
Investors should consider HDFC Sec’s recommendations for Oil India and Tech Mahindra as potential opportunities for upside. However, they should assess their risk tolerance and conduct further research before making investment decisions.
