The stock market is expected to witness some volatility and profit-booking on Wednesday, January 3, as the investors await the outcome of the US Senate runoff elections in Georgia, which will determine the balance of power in the US Congress. The market is also likely to react to the latest developments on the coronavirus pandemic, the vaccine rollout, and the economic data. Here are six stocks that you can buy or sell on Wednesday, based on the technical analysis and recommendations of the experts at HDFC Securities.
Buy: Reliance Industries Ltd (RIL)
RIL is one of the most valuable and diversified companies in India, with interests in oil and gas, telecom, retail, digital, and media sectors. The stock has been in an uptrend since March 2020, and has recently broken out of a consolidation phase, indicating a continuation of the bullish momentum. The stock has also crossed above its 50-day and 200-day moving averages, which are positive signals. The stock has a strong support at ₹1,900, and a resistance at ₹2,100. The experts suggest buying the stock at the current level, or on dips, with a stop loss at ₹1,880, and a target of ₹2,080.
Sell: Tata Motors Ltd
Tata Motors is one of the leading automobile manufacturers in India, with a presence in passenger vehicles, commercial vehicles, and electric vehicles segments. The stock has been in a downtrend since November 2020, and has recently broken below its 50-day and 200-day moving averages, indicating a bearish trend. The stock has also formed a lower top and lower bottom pattern, which is a negative sign. The stock has a strong resistance at ₹185, and a support at ₹160. The experts suggest selling the stock at the current level, or on rallies, with a stop loss at ₹188, and a target of ₹162.
Buy: HDFC Bank Ltd
HDFC Bank is one of the largest and most profitable private sector banks in India, with a strong presence in retail, corporate, and digital banking segments. The stock has been in an uptrend since March 2020, and has recently broken out of a flag pattern, indicating a bullish breakout. The stock has also crossed above its 50-day and 200-day moving averages, which are positive signals. The stock has a strong support at ₹1,400, and a resistance at ₹1,500. The experts suggest buying the stock at the current level, or on dips, with a stop loss at ₹1,380, and a target of ₹1,490.
Sell: Bharat Heavy Electricals Ltd (BHEL)
BHEL is one of the largest and oldest public sector engineering and manufacturing companies in India, with a presence in power, industrial, and transportation sectors. The stock has been in a downtrend since November 2020, and has recently broken below its 50-day and 200-day moving averages, indicating a bearish trend. The stock has also formed a lower top and lower bottom pattern, which is a negative sign. The stock has a strong resistance at ₹40, and a support at ₹32. The experts suggest selling the stock at the current level, or on rallies, with a stop loss at ₹41, and a target of ₹33.
Buy: Infosys Ltd
Infosys is one of the leading and most reputed IT services and consulting companies in India, with a global clientele and a diversified portfolio. The stock has been in an uptrend since March 2020, and has recently broken out of a triangle pattern, indicating a bullish breakout. The stock has also crossed above its 50-day and 200-day moving averages, which are positive signals. The stock has a strong support at ₹1,150, and a resistance at ₹1,250. The experts suggest buying the stock at the current level, or on dips, with a stop loss at ₹1,130, and a target of ₹1,240.
Sell: Hindalco Industries Ltd
Hindalco is one of the largest and most integrated aluminium and copper producers in India, with a presence in mining, refining, smelting, and downstream sectors. The stock has been in a downtrend since November 2020, and has recently broken below its 50-day and 200-day moving averages, indicating a bearish trend. The stock has also formed a lower top and lower bottom pattern, which is a negative sign. The stock has a strong resistance at ₹240, and a support at ₹210. The experts suggest selling the stock at the current level, or on rallies, with a stop loss at ₹245, and a target of ₹215.