On May 22, 2024, HDFC Securities spotlighted NHPC and Tech Mahindra as top buying picks, citing significant technical indicators that suggest upward potential for both stocks. This recommendation comes at a critical time for the Indian stock market, with Nifty struggling to find direction because of the looming election results.
Cash market volumes on the NSE surged to ₹1.32 trillion on May 21, marking the highest level since April 25, 2024. In this context, NHPC and Tech Mahindra stand out as promising investment opportunities, bolstered by strong technical signals and bullish trends.
NHPC, with a current market price of ₹103.55, has shown resilience and upward momentum. The stock has broken out from a downward sloping trend line on the weekly chart, surpassing its previous swing high resistance. This breakout is not just a fleeting phenomenon; it is accompanied by a significant rise in trading volumes, indicating strong investor interest and confidence.
The stock is trading above all important moving averages, which reinforces the bullish outlook across various time frames. Additionally, indicators and oscillators have turned bullish on the weekly charts, further supporting the positive trend. HDFC Securities has set a target price range for NHPC at ₹110.20 to ₹118.50, with a recommended stop-loss at ₹96.50.
Tech Mahindra, another key recommendation, is currently trading at ₹1,325. The stock exhibited a breakout from a downward sloping trend line on the daily chart on April 26, signaling a strong upward trajectory. This price rise was also accompanied by an increase in trading volumes, underscoring the strength of the breakout.
Following this initial surge, the stock experienced a correction, reaching a gap support on the daily chart. This support level proved crucial as the stock resumed its primary uptrend after stabilizing. Like NHPC, the indicators and oscillators for Tech Mahindra have turned bullish on the daily chart, suggesting a continuation of the positive trend. HDFC Securities has set target prices of ₹1,380 and ₹1,478 for Tech Mahindra, with a stop-loss at ₹1,215.
The broader market context is also noteworthy. On May 21, Nifty’s indecisiveness reflected the market’s apprehension as India approached the election results day. The significant rise in cash market volumes on the NSE to ₹1.32 trillion indicates robust trading activity and investor engagement.
Nifty formed a small positive candle, suggesting potential sideways movement in the short term, with resistance anticipated in the 22,578 to 22,775 range and support around 22,198. This market backdrop adds an extra layer of intrigue to the recommendations by HDFC Securities, as investors seek reliable opportunities amid the broader uncertainty.
