Medanta, Vedanta, HDFC Bank & PCBL: What Mileen Vasudeo of Arihant Capital says on these 4 stocks

Mileen Vasudeo, Senior Technical Research Analyst at Arihant Capital Markets, on Wednesday said any bounce back in the current market scenario should be used by traders to go short as there would be overhead supply. On the stock-specific front, the market expert selected Global Health Ltd (Medanta) as one of his top picks. One can keep a stop loss of Rs 720 and target prices of around Rs 790-820 levels could be expected in a couple of weeks, Vasudeo told BT TV. The counter was last seen trading 0.73 per cent lower at Rs 741.70 today.

The second stock which the market expert suggested was PCBL Ltd (formerly Philips Carbon Black). "Investors can buy the stock for targets of Rs 208-222. Keep stop loss placed at Rs 166," he stated. The stock was down 0.28 per cent at Rs 179.50 today.

When asked about HDFC Bank Ltd, Vasudeo said, "The (daily) charts are showing weakness and there could be some more downside possible. Even if there is a bounce back, it may not go beyond Rs 1,540. So, one can keep a stop loss at the said level and on the lower side Rs 1,450-1,425 levels could be expected in a couple of weeks." HDFC Bank was last seen trading 0.37 per cent higher at Rs 1,513.60.

In response to a query on Vedanta Ltd, he said, "The stock has started trading well below the 200-day moving average on monthly charts. For the last nine months, the stock has been in the downtrend. The previous swing low was around Rs 206 and the current trading price is close to it. If the mentioned level is broken then it could lead to a catastrophic fall, slipping towards Rs 175-160 levels. I would recommend not to bottom fish in this stock and stay away from it for now." Vedanta was trading 0.95 per cent lower at Rs 228.60.

Meanwhile, Indian equity benchmarks fell sharply in early deals today, dragged by banks, financials, automobile technology, metals and energy stocks. Broader markets (mid- and small-cap shares) were also weak.

On the global front, Wall Street equities fell overnight. Asian shares also declined today to hit a 11-month low. Concerns around US interest rates weighed on investor sentiment, traders said.

Back home, foreign institutional investors (FIIs) sold Rs 2,034 crore worth of shares on a net basis during the previous session, while domestic institutional investors (DIIs) bought Rs 1,361 crore worth of shares, exchange data showed.

14 out of the 15 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty Bank, Nifty Financial Services, Nifty Auto, Nifty IT, Nifty Metal and Nifty Oil & Gas were underperforming the NSE platform by falling as much as 0.90 per cent, 0.87 per cent, 1.24 per cent, 0.60 per cent, 0.94 per cent and 0.68 per cent, respectively. On the flip side, Nifty FMCG edged 0.25 per cent higher.

On the stock-specific front, Axis Bank was the top loser in the Nifty pack as the stock cracked 2.01 per cent to trade at Rs 1,020.1. IndusInd Bank, Maruti, NTPC and Bajaj Finserv fell up to 1.99 per cent.

In contrast, Nestle India, Hindustan Unilever, Adani Enterprises, BPCL and HDFC Bank were among the top gainers.

The overall market breadth was weak as 1,562 shares were declining while 1,243 were advancing on BSE.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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