Navigating the Stock Market: Insights on Macrotech Developers, HDFC Bank, Adani Green, and More

The stock market has been a whirlwind of activity recently, with the Sensex rebounding nearly 100 points to hit an all-time closing high on Monday. This upward momentum was mirrored by the Nifty, which ended just shy of its record peak. Among the stocks that captured investors’ attention were Macrotech Developers, HDFC Bank, and Adani Green. These stocks saw significant gains, with Macrotech Developers rising by 3.64 percent, HDFC Bank gaining 0.2 percent, and Adani Green experiencing a remarkable 7 percent jump. As the market resumes trading today, technical analyst Kushal Gandhi has provided recommendations on how investors should approach these stocks.

Macrotech Developers, also known as Lodha, experienced a notable price drop after reaching a high of 1650 due to profit-taking activities. The stock has seen a 30 percent decrease and is currently struggling to stay above its 50 and 100-day moving averages, which are acting as resistance levels. Immediate support for the stock lies at the 200-day moving average near 1200. It is crucial for the price to remain above this level to reduce selling pressure. Given these technical indicators, it is recommended to avoid buying Macrotech Developers at its current levels. Investors should wait for additional technical confirmation before considering a new entry point into the stock.

HDFC Bank’s price action is exhibiting a volatility contraction pattern, a technical indicator that often reflects the involvement of savvy investors and a continuous absorption of available supply. The Relative Strength Index (RSI) levels suggest strong momentum in price movement without displaying any divergence from the price. Considering these signs of bullish strength in the private banking index, it is suggested to purchase HDFC Bank with a target price of 1800 and a stop loss at 1622. This strategy aims to capitalize on the positive trend while managing risk effectively.

Adani Green’s share price has been trading within a 25 percent range in a multi-month sideways trend. The 50-day moving average is providing strong immediate support, creating a favorable risk-to-reward opportunity. Additionally, the company’s Earnings Per Share (EPS) strength and buyers’ demand are showing significant improvement. Based on these factors, it is recommended to purchase Adani Green with a target price of 2175 and a stop loss at 1833. This approach leverages the stock’s stability and potential for upward movement.

The broader market context also plays a critical role in these stock movements. The Sensex hitting an all-time high and the Nifty falling just short of its record peak indicate a robust market environment. This positive sentiment is further bolstered by the performance of stocks like Macrotech Developers, HDFC Bank, and Adani Green, which saw significant gains on Monday. Investors should consider these broader market trends when making investment decisions.

In another segment of the market, the stock market reached all-time highs on Monday, driven by the strength in the metals sector due to a declining dollar. Bajaj Housing Finance made a strong debut on the market, with its listing price more than doubling from its initial public offering (IPO) last week. A technical analyst noted that the overall trend for the Nifty 50 remains positive, as foreign institutional investors (FII) have been on the long side in the index futures segment with a long-short ratio of 67.4 percent. Support levels for the Nifty 50 are placed at 25,400 and 25,300, while resistances are seen at 25,500 and 25,700.

The Bank Nifty has been holding above a critical moving average, indicating a bullish trend. The outlook for Bank Nifty remains positive as it sustains its breakout from a declining wedge pattern on the daily timeframe. The daily RSI is in a bullish crossover, suggesting continued upward momentum. In the short term, Bank Nifty is expected to move towards the 52,500-53,000 range, with support at 51,700-51,500. In open interest analysis, put writers added positions at 51,900 and 51,700 strikes, while call writers added positions at 52,000 and 51,900 strikes. Maximum call open interest is seen at 52,000, and maximum put open interest is seen at 51,000 and 51,500, indicating a broad range for the near term.

In the weekly expiry, both put and call writers remained equally active. In open interest analysis, put writers added positions at 25,200 strikes as the initial support level, while call writers added positions at 25,500, indicating strong resistance for the short term. Maximum put open interest was seen at 25,000 and 25,200, while maximum call open interest was seen at 25,400 and 25,500, indicating a broader range for the market. Call writers are seen to be outnumbering put writers, suggesting a cautious approach among traders.

Oberoi Realty has formed a symmetrical triangle pattern on the daily chart, continuing its upward trend after establishing support. Some profit booking was observed in the Indian benchmark on Friday, as traders awaited the US Federal Reserve’s policy outcome for rate cut cues. The BSE Sensex shed 71.77 points or 0.09 percent, while the NSE’s Nifty50 dropped 32.40 points or 0.13 percent. Despite this, Oberoi Realty remains a stock to watch. Senior technical analyst Rupak De from LKP Securities has shared his views on Oberoi Realty, Bharat Petroleum Corporation (BPCL), and Axis Bank.

According to Rupak De, Oberoi Realty is showing a bullish trend, with the RSI on the rise in the short term. The stock could move towards 1,920, with support at 1,759. On the other hand, BPCL is facing downward pressure, with the RSI showing a bearish crossover. The stock has been below a sloping upward wedge pattern, and the selling pressure could push the price to Rs 325. Resistance is expected at Rs 347 on the upper side. Investors should be cautious with BPCL, given the current technical indicators.

Axis Bank has developed an ascending triangle pattern on the daily chart and is above a key moving average. The RSI is in a bullish crossover and trending upward. In the short term, the stock could move towards Rs 1,275, with support at Rs 1,179. This positive outlook for Axis Bank aligns with the broader bullish sentiment in the banking sector. Investors looking for opportunities in the banking sector may find Axis Bank to be a compelling option, given its strong technical indicators and upward momentum.

In conclusion, the recent movements in the stock market offer a mix of opportunities and cautionary signals for investors. Stocks like Macrotech Developers, HDFC Bank, and Adani Green have shown significant gains, supported by robust technical indicators. However, it is essential to consider broader market trends and individual stock patterns before making investment decisions. Consulting with certified financial experts and staying informed about market developments can help investors navigate the complexities of the stock market and make informed choices. As always, a balanced approach that considers both potential gains and risks is crucial for successful investing.