Hot Stocks | Here's why you should sell Hindalco Industries and Motherson Sumi Systems for short term

Asia's Tech News Daily

Hindalco Industries, #Hot Stocks, Motherson Sumi Systems, #Stocks Views, #Technicals

Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel One

On 22 November, the SGX Nifty was indicating a pleasant start for the week in line with cheerful global peers. However, Indian equities did not open with the same positivity and in fact gave up all gains in the initial trades itself. As the day progressed, the selling augmented across the broader market to break all intermediate supports one after another. On Tuesday, after forming a low around 17,200, oversold markets recovered a bit over the course of three sessions. However, on Friday, the new variant of coronavirus haunted market participants across the globe and as a result, we had a massive gap down followed by aggrandised selling throughout the session to close tad above the 17,000 mark.

This week’s sharp correction has clearly validated our recent cautious stance on the market. Considering the ‘Shooting Star’ on the monthly chart, we anticipated a formation of bearish ‘Head and Shoulder’ pattern on daily chart. The said pattern finally got confirmed on Monday after breaking the neckline level of 17,700. The moment our anticipation turned into reality, there was no ambiguity left. Although our initial target of 17,200-17,000 has been met, market is not done with its correction yet.

Considering the weekly chart, we will not be surprised to see it extending towards 16,500 – 16,200 in coming days. We do not want to sound too pessimistic, but this is what the price structure looks like at this moment. On the flip side, 17,200 – 17,400 are to be seen as immediate hurdles.

With a slightly broader view, if Nifty has to regain any strength, it needs to surpass 17,700 with some authority. Honestly this looks highly unlikely at current juncture as we expect lower levels to get tested first. The broader market too seems to have succumbed to this selling pressure and hence, one should not be in a hurry to do any kind of bottom fishing immediately.

Here are two sell calls for short term:

Motherson Sumi Systems: Sell | LTP: Rs 216.50 | Stop Loss: Rs 228 | Target: Rs 202 | Return: (-6.7) percent

It was certainly a difficult week for our markets as we witnessed a good broad based selling on the first and the last day of the week. This stock consolidated at the 200-day SMA (simple moving average) for 3-4 days; but on Friday, we finally witnessed a decisive breakdown from this sacrosanct support for the first time after 13 months.

Whenever we see any important support being breached after such a long time, the stock prices continue the downward trend for a while. We recommend selling around Rs 219 for a short term target of Rs 202. The stop loss can be placed at Rs 228.

Hindalco Industries, #Hot Stocks, Motherson Sumi Systems, #Stocks Views, #Technicals

Hindalco Industries: Sell | LTP: Rs 417 | Stop Loss: Rs 434 | Target: Rs 399 | Return: (-4.3) percent

Global markets are witnessing a strong sell off and whenever we see some uncertainty across the globe, the ‘Metal’ space is first one to react on it. In fact, our markets started correcting in last week and hence, metal counters were already experiencing that corrective phase.

On Friday, due to aggravated selling, Hindalco sneaked below its key support of Rs 435 on a closing basis. Considering the daily and weekly time frame charts, we expect the correction to extend in this counter.

Traders can look to short on a small bounce towards Rs 422 – 425 for a short term target of Rs 399. The stop loss can be placed at Rs 434.

Hindalco Industries, #Hot Stocks, Motherson Sumi Systems, #Stocks Views, #Technicals

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Cabinet decides to postpone Russian Investment Forum from February to later dates, says PM

The forum was cancelled in 2020 and 2021 due to the coronavirus pandemic Read more »

Nearly 200 Dutch patients planning to sue Philips over sleep apnea machines

At least 185 people in the Netherlands are considering legal action against Philips after developing health problems while using the company’s sleep apnea ventilators. The Eindhoven-based electrical giant is having ... Read more »

Google fined by the Russian government for failure to delete banned content

Photo by: Arkan Perdana/Unsplash Google has been slapped with $52,526 or 4 million in Russian ruble in fine due to its failure to take down banned content in Russia. It ... Read more »

Amazon ditches plan to stop accepting Visa credit cards

Photo by: Christian Wiediger/Unsplash Amazon previously announced that it would stop accepting Visa credit cards in the United Kingdom, and now this plan has changed. It was reported that the ... Read more »

Lotte Group acquires Ministop Korea after beating Shinsegae in the biddings

Photo by: LERK/Wikimedia Commons (CC-BY-SA 4.0) Lotte Group is set to acquire Ministop Korea after it has become the preferred bidder, beating Shinsegae in the process. The South Korean multinational ... Read more »

McDonald's UK fans protest Chicken Legend's continued absence from menu

The Chicken Legend’s followers were assured that the removal was only temporary and that McDonald’s would bring it back in all three flavors: BBQ, cool mayo, and hot and spicy ... Read more »

B1.4bn approved for programmes to reduce cost of living

People queue for noodle soup at a shop in Silom that displays increased prices. (Photo: Somchai Poomlard) The cabinet on Tuesday approved the allocation of 1.48 billion baht from the ... Read more »

Some Starbucks sites cut hours, limit seating as Burger King reports weaker sales due to Omicron

Starbucks and other restaurants have learned how to operate through the pandemic and have invested in the infrastructure to revert to delivery, drive-through, or takeout as needed. Starbucks Corp. and ... Read more »

Shimao's founder offers to sell two floors at The Center in Hong Kong as developer digs into his own pockets to pare company's debt

Shimao Group’s founder is putting two floors of the world’s priciest office tower on the market for sale, as even one of China’s more restrained real estate developers digs into ... Read more »

Credit Suisse's Antonio Horta Osario resigns as chairman after violating COVID-19 rules

Photo by: Credit Suisse Website Credit Suisse’s chairman, Antonio Horta-Osorio, has tendered his resignation this week after getting involved in a controversy. The executive was said to have violated COVID-19 ... Read more »

TikTok posts feedback form under ‘localization' law, says Russian regulator

Under the law, overseas Internet companies with a daily audience exceeding 500,000 users must open their authorized representative offices in Russia Read more »

Abu Dhabi-based start-up aims to launch world's first plastics trading exchange as global companies call on governments to act

A start-up based in Abu Dhabi plans to build a global platform for trading used plastics, as more than 70 leading businesses and financial institutions call for more international government ... Read more »

Starbucks UK launches vegan tuna sandwich

Photo by: Starbucks UK Press Release Starbucks UK has unveiled a new plant-based sandwich, and it is simply called the Tu'Nah Sandwich. The new vegan sandwich option has been added ... Read more »

Chip crisis pushes European car sales to new low

Car sales in Europe fell to their lowest point since statistics began in 1990 PARIS – EU car sales fell to a new low last year as the auto sector ... Read more »

Asia shares mostly lower as investors mull likely rate hike

The Associated PressA woman wearing a face mask walks past a bank’s electronic board showing the Hong Kong share index in Hong Kong, Tuesday, Jan. 18, 2022. Asian shares were ... Read more »

Louis Vuitton closing its outlets in duty-free shops in S. Korea

Photo by: Llibert Losada/Unsplash Louis Vuitton is pulling out its stores in downtown duty-free shops in South Korea. It was revealed that the French luxury brand is closing its shops ... Read more »

Yandex, KT Corporation to launch robotic couriers in Seoul

South Korea is the first East Asian market where Yandex autonomous delivery robots will start operating Read more »

Budget 2022 | General government deficit to ease to 9.3% of GDP in FY23

Representative image The COVID-19 pandemic took a huge toll on government finances in FY2021. While a modest correction was attempted in FY2022, ICRA expects the Government of India’s (GoI’s) fiscal ... Read more »

Paytm's first investor expresses confidence in startup even as others feel party's over for the super app

Two months after Paytm sank on its first trading day following India’s biggest initial public offering, co-head of an early investor remains confident in the digital payments startup expressing zero ... Read more »

Toyota needs to build 1 million cars in March to reach annual target

Toyota Motor Corp will build 700,000 vehicles globally in February, up 10% on the year, but will still need to make a million more in March in order to reach ... Read more »

Priyanka Gandhi Vadra slams Yogi govt, urges youth to stick to agenda of employment, education in polls

Priyanka Gandhi Vadra Congress leader Priyanka Gandhi Vadra on Tuesday attacked the Yogi Adityanath government in Uttar Pradesh over the issues of employment and education, and urged the youth to ... Read more »

Asahi Super Dry is changing its beer recipe for the first time in over three decades

Photo by: Bob Jansen/Unsplash Asahi Super Dry Beer is Japan’s no. 1 and best-selling beer, and now the brewery is reformulating its recipe for the first time in 35 years. ... Read more »

Indonesia removes ban on foreign arrivals for recovery boost

FILE PHOTO: Travellers wearing protective suits are seen at the Soekarno Hatta International airport, as the country bans the arrival of travellers who have been in eight African countries to ... Read more »

Bank of Japan lifts inflation forecast, no policy change

Japan’s central bank has revised up its inflation forecast TOKYO – Japan's central bank revised its inflation forecast on Tuesday and adjusted its view of price risks, while leaving its ... Read more »

Tesla in India | States inviting Tesla to set up EV manufacturing plants

A number of Indian states have rolled out the red carpet for Elon Musk’s American electric vehicle company, Tesla, after he told a netizen that Tesla is facing challenges in ... Read more »

Buy GNA Axles: target of Rs 720: Sharekhan

Sharekhan’s research report on GNA Axles Q3FY2022 results were below expectations, marred by weak class-8 truck sales and muted growth in domestic tractors. While remaining positive on the company’s growth ... Read more »

Ducati Streetfighter V4 Review: Firing on all cylinders

There aren’t too many petrol cars in India that produce 200 hp. One of the cars that does is the Mahindra XUV700, which weighs two tonnes and still accelerates at a ... Read more »

Toyota to produce 700,000 vehicles in February

Toyota Motor Corp will build 700,000 cars globally in February, up 10% on the year, but leaving a million vehicles to be made in March if the world’s biggest carmaker ... Read more »

Renting in the free sector is rising again

“The increase is not surprising,” says Jasper de Groot, director of Pararius. “The demand is very high, and the supply is low. Then the prices rise.” The demand for rental ... Read more »

Pandemic severely dented consumer confidence in India: RBI Bulletin

Representative image. The pandemic severely dented consumer confidence in India, with sentiments of households across strata influenced by the spread of infections and fatalities, according to the January Reserve Bank ... Read more »

Hero MotoCorp stake in Ather energy to go up by 1-3% post its Rs 420 crore investment

Representative Image Hero MotoCorp’s stake in electric two-wheeler maker, Ather Energy is likely to go up by 1-3 % as a result of the company’s further investment in the EV ... Read more »

Renting in the free sector is rapidly becoming more expensive, according to Pararius

Photo: ANP In at least eleven years it has not been as expensive to rent a home in the free sector as it has been in recent months. This is ... Read more »

Nesco promoter buys a bungalow in Mumbai for Rs 93 crore

Representative image The promoter of diversified firm Nesco, who is also a director of Chandler & Price (India) Pvt Ltd, has bought a bungalow for Rs 93 crore in the ... Read more »

Is Ola Electric halting production of the S1 scooter?

For those who simply want to purchase the lighter and cheaper S1 without the option of upgrading its features, you’re going to have to wait a lot longer till the ... Read more »

China must put even more electric cars on the roads at a faster rate to meet nation's 2060 carbon neutral target, Greenpeace says

Manufacturers and policymakers in China must work together to put even more zero-emission vehicles on the roads of the world’s largest vehicle market to meet the nation’s carbon neutrality target ... Read more »

Margins will come under control in the next 2-3 quarters: HCL Tech CEO C Vijayakumar

Read more »

20% fall in January bookings due to COVID-19 forces railways to cancel several train services

[Representative image: AP] Indian Railways has begun to cancel several train operations due to low occupancy, with a 20 percent fall in passenger bookings in January and rising cases of ... Read more »

G.O.A.T Brand Labs acquires The Label Life, a westernwear brand

G.O.A.T Brand Labs has taken a majority stake in The Label Life, a women’s fashion and lifestyle brand.  Founded by Preeta Sukhtankar, along with Yashika Punjabee and Sonam Shah, six ... Read more »

RBI imposes monetary penalty on The Co-operative Bank of Rajkot

The Reserve Bank of India (RBI) on January 17 imposed a monetary penalty of Rs 4 lakh on The Co-operative Bank of Rajkot, Gujarat for violation of certain norms. This action ... Read more »

Maruti Suzuki share price falls after global brokerage retains 'sell', expects 25% downside

Maruti Suzuki India share price fell over 2 percent in the morning session on January 18 after CLSA retained sell call on the stock. The scrip was trading at Rs ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic