What should investors do with India’s most valued company
22/04/2022, INDIA, 02:45 PM
Indian market closed with gains of over 1 per cent for the second consecutive day in a row on Thursday pushing benchmark indices above crucial resistance levels. The S&P BSE Sensex closed nearly 900 points higher on Thursday at 57,911 while the Nifty50 rose 256 points to close at 17,392.
Sectorally, buying was seen in autos, consumer discretionary, IT, banks, and consumer durable stocks while marginal selling was seen in metals stocks.
Stocks which were in focus included RIL, India’s most valued company with a market capitalization of more than Rs 18.8 lakh crore, which hit a fresh 52-week high of Rs 2,788 before closing with gains of 2.3 per cent at Rs 2,782.
Other stocks in focus include names like Nestle India as well as HCL Technologies post their Q4 result ..
Here's what Santosh Meena, Head of Research, Swastika Investmart, recommends investors should do with these stocks when the market resumes trading today:
Reliance Industries: Buy | Target: Rs 2,950-3,000
RIL hit a fresh high after global investment bank Morgan Stanley upgraded its target price to Rs 3,253, signaling about a 20 per cent upside in the counter.
Technically, RIL is in a strong bullish momentum and is outperforming the market where it is continuing to rise upwards after breaking out from a bullish Flag formation on the daily chart.
The pattern target comes around Rs 2,950-3,000 which coincides with an upsloping trendline.
On the downside, Rs 2,680-2,640 has become an immediate demand zone. Investors should continue to hold this stock with an immediate target of Rs 2,950 level.
Nestle India: Hold | Stop Loss: Rs 17,800
Nestle India said that its net profit fell 1.25 per cent year-on-year (YoY) to Rs 594.71 crore in March quarter compared with Rs 602.25 crore in the same quarter last year.
Shares of Nestle India closed flat on Thursday with a negative bias. The stock has been an underperformer in the last one year (up a little over 6 per cent) compared to over 20 per cent upside seen in Nifty50 in the same period.
Source : The Economic Times