Adani Ports, LIC Housing, Hero Motocorp: What should be your strategy amid the volatility

Domestic stock indices fell on Monday, as upbeat US jobs data dented the sentiment for the market. The BSE Sensex plunged 334.98 points, or 0.55 per cent, to close at 60,506.90. Nifty tanked 89.45 points, or 0.5 per cent, to 17,764.60 for the day.

Select stocks such as Adani Ports & SEZ, LIC Housing Finance and Hero Motocorp were on traders' radar amid the strong trading session at the Dalal Street. Here is what Ganesh Dongre - Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers suggests investors has to say on these stocks for Tuesday's trading session:

Adani Ports & SEZ | Buy | Target Price: Rs 600-630 | Stop Loss: Rs 450

At present, the stock stayed below its 200-DMA, which is placed at Rs 790. The scrip has broken below its major long-term support, which was placed in the Rs 650-670 zone. The RSI indicator is in the oversold zone. Also, on the daily chart, the stock has formed a ‘Dragonfly Doji’ pattern, which is a trend reversal indicator. We can see a short-term pullback rally for this stock in the upcoming session. But, at the same time, the stock is trading below it long-term support price and 200-DMA. Traders should be cautious on every trade. A short-term trader can buy this stock with a stop loss of Rs 450 for the target price Rs 600-630.

Hero Motocorp | Buy | Target Price: Rs 2,800-2,850 | Stop Loss: Rs 2,600

For the last two months, the stock is trading in a narrow range of Rs 2,600-2,850 on the daily chart. It is near its support price of Rs 2,600 level. Also, on the technical front, the stock is forming a ‘Bullish Engulfing’ pattern, which is bullish in nature for the short term. Traders can buy Hero Motocorp with a stop loss of Rs 2,600 for the target price of Rs 2,800-2,850.

LIC Housing Finance | Hold for Break-out

On the weekly chart, LIC Housing Finance is still in the consolidation zone. It is stuck up in the tight range of Rs 300-400 zone. On the technical front, there is no fresh breakout. Trader, who has bought this stock, can hold it for now and wait for a fresh breakout.

(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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