Trade Spotlight: Tata Chemicals, Maruti Suzuki & HDFC Bank in focus

Stocks which were in focus on Thursday include Tata Chemicals which rose more than 6 percent, Maruti Suzuki that rallied more than 7 percent and HDFC Bank which fell more than 2 percent.

The S&P BSE Sensex and Nifty hit fresh record highs on December 3 but witnessed profit-taking towards the close of the trade.

Let’s look at the final tally on D-Street – the S&P BSE Sensex rose 14 points to 44,632 while the Nifty50 closed with marginal gains of 20 points to 13,133.

Sectorally, the action was seen in the public sector, metals, oil & gas, power, and auto stocks while profit-taking was visible in IT, Finance, and Banks.

On the broader markets front – the S&P BSE Midcap index rose 0.8 percent while the S&P BSE Smallcap index was up 0.68 percent – outperforming benchmark indices.

Stocks which were in focus on Thursday include Tata Chemicals which rose more than 6 percent, Maruti Suzuki that rallied more than 7 percent and HDFC Bank which fell more than 2 percent.

We have collated views of experts on what investors should do when the market resumes trading on 3 December:

Expert: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

Tata Chemical: 425 should be the trend decider level

On December 3, the stock made a fresh all-time high of Rs 464.85. In this quarter so far, it has rallied over 50 percent and the important point is that the stock not only surpassed its previous 52-week high of Rs 342.30 but comfortably managed to sustain above the same.

The sharp uptrend rally surprised most traders as well as investors. On daily and weekly charts, the stock has formed a breakout continuation pattern, which is grossly positive for Tata Chemicals.

However, on the short-term time frame, the momentum indicators suggest that the stock is in an overbought zone and there are high chances of a quick short-term price correction if the stock trade below Rs 424.

For the next few trading session, Rs 425 should be the trend decider level for the bulls. And if it sustains, we can expect a continuation of the uptrend towards Rs 505. On the flip side, a close below Rs 425 could possibly trigger short-term correction up to Rs 390.

Maruti Suzuki: Stay put for a target above Rs 8000

The stock has rallied over 7 percent on December 3. It opened with a gap on the upside and quickly surpassed the Rs 7350 important resistance mark with strong volume activity.

Despite tepid market conditions, Maruti maintained strong momentum throughout the day. On the short-term time frame, the stock has formed a strong price volume breakout pattern.

The texture of the pattern suggests that breakout action will continue in the near-term if the stock succeeds to trade above the Rs 7350 level.

For the swing traders, Rs 7350 should be the sacrosanct level, trading above the same we can expect an uptrend continuation wave up to Rs 8450.

HDFC Bank: Rs 1440 should act as a key resistance level to watch

After a sharp uptrend rally from Rs 1150 to Rs 1320, the stock is now consolidating near its all-time high level. The momentum indicators indicate that the stock is in an overbought zone and there are high chances of a short-term correction if it starts trading below the Rs 1440 resistance level.

However, on the daily as well as weekly charts, the stock is still in a strong uptrend, so any meaningful correction should be the opportunity for the investor to add long positions near important support levels.

For the next few trading sessions, Rs 1440 should act as a key resistance level. If it trades below the same, then the correction could take the stocks towards Rs 1350-1340.

On the flip side, Rs 1440 would be the immediate hurdle for the bulls, and if trades consistently above the same, then the trend could well take the stock towards Rs 1525.