The Indian markets, which saw the biggest single-day drop in a month on Tuesday, witnessed a rebound on August 14 thanks to positive global cues. The S&P BSE Sensex is back above 37,000 while the Nifty50 reclaimed 11,000 levels.
In terms of sectors, the S&P BSE Metal, Telecom, and Oil & Gas index rose 1-2 per cent, while selling was seen in healthcare and power stocks.
Some of the stocks that kept investors on the edge were YES Bank, RIL, HDFC, Bajaj Finserv, and Bajaj Finance. We spoke to an analyst to get an insight into the technicals of the stocks and where are they headed in the short term:
Analyst: Romesh Tiwari, Head of Research, CapitalAim.
Yes Bank: Stock down nearly 60% in 2019
We have seen the stock witnessing a vertical fall to hit a fresh 5-year low on Tuesday. It has been making lower lows and lower highs with heavy volumes. All the technical indicators, like MACD at -6.51 and RSI at 34.24, are still suggesting sell on the stock.
However, we cannot rule out a small bounce from this oversold region (StochRSI is at 0), which may pause the slide in the stock for a while and can see it trade in a range of Rs 70 to Rs 85 in this week.
Reliance Industries Ltd: Rallies 14% so far in 2019| saw biggest single-day gain in a decade
The stock made a low of Rs 1095.3 on August 8 2019, and then bounced back sharply, especially on Tuesday with heavy volume, which is a positive sign.
With the current momentum expected to continue in the stock, it may touch Rs 1,370 levels in this week itself and Rs 1,420 in a month, with support existing at the Rs 1,245 and Rs 1,150 levels.
There are some indicators of higher volatility in the stock, and there may be some selling if it fails to trade and close above Rs 1,270.
(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)
HDFC: Witnessed a sharp 5% fall on Tuesday
HDFC has a strong support around the Rs 2,040-2,020 zone. If the stock breaks below this support, then there are higher chances of the stock slipping towards the Rs 1,920-1,900 levels.
The stock may bounce back towards Rs 2,215 levels, and if it sustains there, it may further move towards Rs 2,280 level.
Although technical indicators remain mixed, the stock may trade and consolidate between the levels of Rs 2,050-2,280 in the short-term.
Bajaj Finserv: Stock up nearly 10% in 2019, but could see selling at higher levels
Bajaj Finserv has shown a bounce from the level of Rs 6,600 and made a high of Rs 7,590 on August 9. Technical indicators suggest that the stock is in an overbought region and MACD (12,26) is now showing -163.460, which suggest that it may find resistance around the recent highs around Rs 7,490-7,500.
The stock may see selling at higher levels with support coming around Rs 6,900-6,930 levels.
Bajaj Finance is rangebound and may trade between Rs 3,150-3,450 in this week.
Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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