Reliance Industries, TCS, HDFC Bank: Trading strategies for 3 most-valued stocks

Domestic equity indices extended their recent weakness and settled with big cuts on Wednesday, ahead of the US Fed's policy review. The BSE Sensex plunged 796 points, or 1.18 per cent, to settle at 66,800.84. The NSE Nifty tanked 231.90 points, or 1.15 per cent, to end at 19,901.40. Later in the day, the US Fed kept interest rate unchanged but suggested fewer rate cuts in 2024 than anticipated.

Three most-valued stocks namely Reliance Industries (RIL), HDFC Bank and Tata Consultancy Services (TCS) are likely to be in focus today. Here is what Laxmikant Shukla, Technical Research Analyst at YES Securities has to say on these stocks ahead of Thursday's trading session:

HDFC Bank | Caution| Resistance: Rs 1,630 | Support: Rs 1,530
HDFC Bank has plummeted from its swing high of Rs 1,670 on the back of negative news flows. It has fallen more than six per cent. The sharp selloff has pushed to drop below its 20- and 50-week moving average. The daily momentum indicator RSI is also showing negative cues. Going ahead, if the support zone of Rs 1,530 is saved, an oversold bounce shall be expected towards Rs 1,630 -1,670 levels. On the flip side, a failure to hold the mentioned support would weaken the stock further and it can slip down till Rs 1,410 levels.

Reliance Industries | Range-bound | Resistance: Rs 2,500 | Support: Rs 2,320
Reliance Industries is in the corrective phase. From a technical point of view, the stock lacks traction and has given congestion breakdown below the Rs 2,400 level. Negative crossovers in RSI and stochastic on the daily chart are also suggesting bearish sentiments. As far as levels are concerned, the support is placed at Rs 2,320. This is where the 200-DMA lies for the stock. On the higher end, resistance is placed at Rs 2,500, followed by Rs 2,585 level.

Tata Consultancy Services | Buy | Target Price: Rs 4,060 | Stop Loss: Rs 3,370
Tata Consultancy Services is trading at a 52-week high, which implies that the stock already is in strong momentum. A recent breakout from a falling trend line pattern along with the formation of Bullish Belt Hold candlestick pattern over bullish crossover of 20- and 50-DMA on the daily chart confirms the trend's continuation to the upside. The opening of Bollinger bands on the daily timeframe suggests rising volatility in support of an upward move. Going ahead, one can expect the prices to move higher till the level of Rs 4,060. The stop-loss must be placed at Rs 3,370 on a closing basis.


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