Hero MotoCorp, HDFC Life, ICICI Lombard: Trading strategies for these buzzing stocks

Domestic equity indices ended sharply lower on Monday, as the headline indices dropped on higher bond yields and persistent geopolitical tensions. The BSE Sensex crashed 825 points, or 1.26 per cent, to end the day at 64,571.88. The NSE's Nifty settled about 261 points, or 1.34 per cent, to end the day at 19,281.75.

Some buzzing and well-known stocks of Dalal Street namely ICICI Lombard General Insurance Company, Hero MotoCorp and HDFC Life Insurance Company are likely to remain under the spotlight of traders for the session today. Here is what various domestic brokerage firms has to say on these stocks ahead of Wednesday's trading session:

ICICI Lombard General Insurance Company | Buy | Target Price: Rs 1,540-1,550 | Stop Loss: Rs 1,280
In the recent past, ICICI Lombard has formed a rounding bottom pattern on the weekly interval. It recently surpassed its key resistance of Rs 1,200 level, along with a decisive move above its 200-days exponential moving average on the weekly chart. Since then, a consolidation phase has been kicked in and the stock witnessed sideways moves in the range of Rs 1,250-1,400, with formation of lower-high pattern. At the current juncture, a fresh breakout has been observed above the 'Cup and Handle' pattern on the weekly chart, which points towards the next upswing. Therefore, one can buy the stock in the range of Rs 1,380-1,390 for the upside target of Rs 1,540-1,550 levels with a stop loss below Rs 1,280 level.

Recommended by: SMC Global

HDFC Life Insurance Company | Buy | Target Price: Rs 725-775
HDFC Life Insurance Company is currently trading at Rs 642. The stock recently experienced a breakout but it retested the same. If the stock surpasses Rs 650, it could gain bullish momentum. It's worth considering at around Rs 620 in case of any correction. HDFC Life's technical indicators are bullish. The stock has closed above key moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA), signaling strength across various timeframes. The Relative Strength Index (RSI) stands at 54, suggesting a balanced momentum with a room for further price appreciation. In summary, with a solid foundation, a strong moving average performance, and a balanced momentum, HDFC Life appears to be well-positioned for a bullish trajectory. Traders may want to explore potential long positions while also being prepared to ‘buy on dips’ around Rs 620. The short-term target range could be Rs 725-775.
Recommended by: Choice Broking

Hero MotoCorp | Buy | Target Price: Rs 3,675-3,700 | Stop Loss: Rs 2,900
After making its 52-week low of Rs 2,246 in the month of March, Hero MotoCorp witnessed almost a V-shape recovery in prices and surpassed its key resistance level of Rs 2,700 in a short span. At the current juncture, the stock has been consolidating in a broader range of Rs 2,900-3,200 for more than three months. Technically, the stock has managed to give a fresh break above the rectangle pattern formation after a series of consolidation phases. Last week, the stock also marked its 52 week high. Therefore, one can buy the stock in the range of Rs 3,180-3,210 levels for the upside target of Rs 3,675-3,700 levels with stop loss below Rs 2,900 level.

Recommended by: SMC Global


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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