Reliance Industries, ZEEL, HDFC Life Insurance: How should you trade these stocks

Bulls were back at Dalal Street after a day's hiatus as the positive global sentiments lifted the mood at Dalal Street. The 30-share pack BSE Sensex jumped more than 445.73 points, or 0.77 per cent, to 58,074.68, while NSE's Nifty50 gained 119.10 points, or 0.70 per cent, to settle at 17,107.50.

Select stocks such as HDFC Life Insurance Company, Reliance Industries (RIL) and Zee Entertainment Enterprises (ZEEL) were on traders' radar amid the volatility at Dalal street. Here is what Santosh Meena, Head of Research at Swastika Investmart has to say on these stocks ahead of Wednesday's trading session:

HDFC Life Insurance | Buy | Target Price: Rs 550-580 | Stop Loss: Rs 500
After a protracted downtrend, HDFC Life Insurance is beginning to show signs of turnaround, as shown by a bullish divergence in the RSI on the daily chart. The 20-DMA at Rs 485 is a barrier, which must first be overcome. The important supply zone between Rs 495 and Rs 510 must be broken on the upside to confirm a trend reversal. A move in the direction of Rs 550 and Rs 580 levels is anticipated above Rs 510. There is a chance of more weakness if the stock is unable to maintain above the Rs 500-level.

Reliance Industries | Hold | Target Price: Rs 2,400-2,450 | Stop Loss: Rs 2,200
Reliance Industries tested its key support at Rs 2,200 after breaking below the Rs 2,300 mark. The Rs 2,200 is the same level as March of last year, when Reliance Industries experienced a 30 per cent rally. As a result, we anticipate a bottom around this level in the near future. On the upside, Rs 2,300 will now serve as a short-term obstacle and Rs 2,400–2,450 will continue to be a significant resistance zone. Technically, a Morning Star candlestick pattern with a positive crossover in the RSI at the Rs 2,200 level indicates a reversal in the direction of this counter.

Zee Entertainment Enterprises | Hold | Target Price: Rs 228-240 | Stop Loss: Rs 200
If we take a look at the weekly chart, we can see that Zee Entertainment is bottoming out near the same level of Rs 180  where a rally of more than 100 per cent was seen in September 2021. As the scrip has been able to close above its 50-DMA, one can look at more gains to the levels of Rs 228 and Rs 240 ahead. The bulls will, however, have to put in a lot of effort to push the stock past the Rs 260 mark. On the downside, the Rs 200 will serve as a solid base.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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