Breakdown Stocks: How to trade RIL, Asian Paints and Bajaj Auto that hit fresh 52-week low?
Indian market closed in the red for the second consecutive day in a row on Monday. The BSE Sensex fell more than 100 points while the Nifty50 closed above 22,100 levels.
Sectorally, buying was seen in utilities, metals, realty, consumer durables and capital goods while selling was seen in oil & gas, energy and banks.
Stocks that hit fresh 52-week low include names like RIL which was down more than 2%, Asian Paints fell 0.5% and Bajaj Auto was down more than 2% on Monday.
We spoke to an analyst on how one should look at these stocks the next trading day entirely from an educational point of view:
Analyst: Ankit Choudhary, Co-Founder, Financial Independence Services
The Nifty50 has finally reached our target of 22,000, which was shared in November. We expect some bounce from these levels, but Reliance Industries has strong support at 1,100 levels.
Investors can consider SIP mode investments in large-cap stocks like Reliance Industries. If Monday’s low is broken in Reliance Industries, we may see levels of 1,150 and 1,100 soon.
Analyst Disclaimer: We had given an intraday sell call in the morning, followed by an intraday buy call in Reliance later in the day.
Bajaj Auto’s stock price has been declining for the last six days and has its next support at 7,400 levels.
Investors can adopt a sell-on-rise approach, as the stock could face stiff resistance at 8,300 levels, with a stop-loss at 8,701. Please consult your financial advisor before making any investment decisions.
Asian Paints’ stock price could face stiff resistance at 2,420 levels. If today’s low is broken after a bounce, we may see targets of 2,000 and 1,920.
The stock has formed a death cross pattern on the weekly timeframe, and RSI is below 40, indicating that the stock is in a bearish grip.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times
