Adani Ports, Bajaj Finance, Tech Mahindra: What should be your strategy amid market selloff

Domestic stock indices settled sharply lower on Friday following the Hindenburg's report on Adani Group stocks. The BSE Sensex fell 874.16 points, or 1.45 per cent, to settle at 59,330.90. Nifty50 declined 287.60 points, or 1.61 per cent, to 17,604.35.

Select stocks such as Adani Ports, Tech Mahindra and Bajaj Finance were on traders' radar amid the brutall selloff. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these three stocks for Monday's trading session:

Adani Ports | Sell | Target Price: Rs 480-450 | Stop Loss: Rs 671 |

The stock has seen a strong selloff of late. It was down 16 per cent on Friday. At present, its weekly 200-week SMA stands at Rs 573 level. The RSI on weekly and daily charts is indicating a downtrend. Hence, hold the short position with a stop loss of Rs 671 with a target of Rs 480-Rs 450 levels in the next couple of weeks.

Tech Mahindra | Hold | Target Price: Rs 1,132-1,180 | Stop Loss: Rs 988 |

The stock is showing a strong accumulation in the Rs 1,000-Rs 1,040 range. The stock is still trading well above the 20-days SMA. The scrip is showing a higher-high formation on the daily chart. Hence, one can hold the stock with a stop loss of Rs 988 for a target of Rs 1,132 – Rs 1,180 levels in the next couple of weeks.

Bajaj Finance | Sell | Target Price: Rs 5,200-4,900 | Stop Loss: Rs 6,050 |  

On the daily chart, the stock is maintaining a lower top-lower bottom formation. It is trading well below its short-term moving averages namely 20- and 50–day SMA, which is sign of weakness. Further, the weakness is confirmed by the momentum indicator viz RSI, which is showing a reading below 30 level. Hence, hold the short position with a stop loss at Rs 6,050 for a target of Rs 5,200–Rs 4,900 in the next couple of weeks.  

(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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