ril Stock Price Target: Hot Stocks: What Investors Should Do With India’s Most Valuable Company, Nestle India and HCL Technologies

The Indian market closed Thursday with gains of over 1% for the second straight day, pushing benchmarks above crucial resistance levels. The S&P BSE Sensex closed nearly 900 points higher on Thursday at 57,911 while the Nifty50 rose 256 points to close at 17,392.

From a sector perspective, buying was seen in automotive, consumer discretionary, IT, banking and consumer durables stocks, while marginal selling was seen in metals stocks. .

The stocks targeted included RIL, India’s most valuable company with a market capitalization of over Rs 18.8 lakh crore, which hit a new 52-week high of Rs 2,788 before closing with gains of 2.3% at Rs 2,782.

Other stocks targeted include names such as Nestlé India as well as HCL Technologies reporting their fourth quarter results.

Here’s what Santosh Meena, Head of Research at Swastika Investmart, recommends investors do with these stocks when the market resumes trading today:

Reliance Industries: Buy | Objective: Rs 2,950-3,000
RIL hit a new high after global investment bank Morgan Stanley raised its target price to 3,253 rupees, signaling a rise of around 20% in the meter.

Technically, RIL is in strong bullish momentum and is outperforming the market where it continues to rise after breaking out of a bull flag formation on the daily chart.

The pattern target is around Rs 2,950-3,000, which coincides with an ascending trendline.

On the other hand, Rs 2,680-2,640 has become an area of ​​immediate demand. Investors are expected to continue holding this stock with an immediate target level of Rs 2,950.

Nestlé India: Hold on | Stop Loss: Rs 17,800
Nestle India said its net profit fell by 1.25% year-on-year (YoY) to Rs 594.71 crore in the March quarter, from Rs 602.25 crore in the same quarter last year.

Shares of Nestlé India closed flat on Thursday with a negative bias. The stock has been an underperformer over the past year (up just over 6%), compared to the over 20% rise seen in Nifty50 over the same period.

The counter is attempting to bottom out after a significant correction where it forms a double bottom formation and the breakout will succeed above the Rs 18,800 level which is also its 200-DMA.

Above Rs 18,800, a move towards the Rs 19,400 level can be expected. On the other hand, Rs 17,800 is an immediate and sacrosanct support level which is a cluster of 20 and 50-DMA .

Investors can hold this stock as the decline seems limited. However, bullish expectations should also be subdued as momentum will remain slow. Short-term traders can hold a stop loss of Rs 17,800 on a closing basis.

HCL Technologies: Buy on dips | Target: Rs 1,150-1,180
HCL Technologies, India’s 3rd-largest company by market capitalization, reported stellar after-hours results on Thursday.

The IT major said its consolidated net profit for the quarter ending March was Rs 3,593 crore, up 226% from Rs 1,102 crore in the same quarter last year.

The meter is trading in a near critical demand zone of Rs 1,070-1,050 and if it manages to maintain this zone, we can expect a bounce where Rs 1,150-1,180 will be the resistance zone.

If it slips below the Rs 1,050 level, we can expect selling pressure towards the Rs 900 level. Therefore, short-term traders should hold a stop loss at the Rs 1,050 level, while that any drop around Rs 900 will be a good buying opportunity for long-term investors.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Garland K. Long