Brokerage Prabhudas Lilladher (PL) said shares of HDFC Bank Ltd, Tata Elxsi Ltd and Tatva Chintan Pharma Chem Ltd can see potential upside in the near future, following the recent price movements. It sees levels of Rs 1,700-1,800 on HDFC Bank and said Tatva Chintan is showing signs of bottoming out. PL sees an initial target of Rs 8,600 on Tata Elxsi.
In the case of HDFC Bank, PL noted that the stock consolidated in the range of Rs 1,360-1,470 after seeing a decent erosion from the peak of Rs 1,720 level. At present, HDFC Bank is trading above its 50-DMA level of Rs 1,440 and is giving a rectangle pattern breakout on the daily chart, PL said.
"HDFC Bank futures witnessed short coverings above Rs 1,480 and the daily VWAP level of Rs 1,450 is also near 50-DMA on futures. Option Chain suggests 1,500 CE (call) writers have the highest open interest and are aggressively active, with more than 8 lakh OI; and 1,400 PE and 1,450 PE (put) writers holding maximum exposure for this series," said Shilpa Rout, AVP - Derivatives Research at PL.
With the support of Rs 1,400, PL recommended going long in this counter for an upside target of Rs 1,700-1,800.
In the case of Tata Elxsi, Vaishali Parekh, Vice President for Technical Research at PL said the stock has come out of the rectangular box having Rs 7,900 as resistance level. She sees the positive bias improving.
Parekh said a decisive breach above the 100-period MA of Rs 8,120 will strengthen the trend, which can propel the upward movement for Tata Elxsi with higher targets of Rs 8,600 and Rs 9,000 levels expected.
In the case of Tatva Chintan, the stock has witnessed a decent erosion on the daily chart since the peak of Rs 2,650-odd level. It recently showed signs of bottoming out near Rs 1,060 zone.
"It is an indication that a pullback has improved the bias to some extent. The RSI has shot up from the highly oversold zone indicating a trend reversal with much upside potential visible. One can accumulate the stock for an upside target of Rs 1,450 and Rs 1,590 levels, keeping the strict stop loss of Rs 1,060 levels," Parekh said.