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Bullish +75

Vedanta shares in overbought zone? Where is HAL headed? Expert answers | Daily Calls on BTTV

AI-generated analysis

πŸ“‰ Analyst Nilesh Jain from Centrum advises against buying Vedanta Ltd at current levels, stating it is in an overbought zone following a recent rally.

πŸ’Έ The expert notes that value unlocking has already occurred via the demerger of four businesses, though the listed entities are yet to trade.

πŸ•’ Investors wishing to enter Vedanta should wait for a pullback to the Rs 280-290 level, which is viewed as a good entry point by Jain.

πŸ›‘οΈ Hindustan Aeronautics Ltd (HAL) remains Jain's preferred bet within the defense sector with a bullish short-term setup visible.

πŸ“ˆ HAL has gained 26.3% in one month and has broken out from a falling trend line seen since Rs 4,550 levels.

🎯 The analyst projects HAL could reach the Rs 5,000 level in the short term, with a positional target of Rs 5,500 or higher.

πŸ“Š HAL is currently trading above most of its long and short-term moving averages, indicating strong momentum for both short-term and long-term portfolios.

⚠️ Jain recommends keeping a stop loss at Rs 4,400, which acts as the stock's 200-day moving average support level.

πŸ” Investors are advised to hold the position as long as HAL maintains its support at the Rs 4,400 level to sustain upward movement.

πŸ“Ί These views were shared by Nilesh Jain, Head VP - Technical & Derivatives Research at Centrum, on Thursday's Daily Calls on BTTV.

πŸ“ The show features top market experts providing live guidance and answering specific stock queries from viewers via WhatsApp or YouTube comments.

⏰ Daily Calls airs every trading day at 12 pm as a LIVE streaming session on the Business Today YouTube channel.

βš–οΈ A disclaimer is provided stating that the views expressed are for informational purposes and investors should consult qualified financial advisors.

Bullish Signals
  • HAL remains the preferred bet in the defence pack according to Nilesh Jain, Head VP - Technical & Derivatives Research at Centrum.
  • The stock is trading above most of its long and short-term moving averages, indicating a strong technical setup.
  • HAL has recently broken out from a falling trend line and climbed 26.3% in the past one month.
  • Analysts see short-term upside potential with the stock targeting the Rs 5,000 level.
  • Positionally, HAL can reach Rs 5,500-plus levels, offering opportunities for both long-term and short-term momentum investors.
  • As long as the stock holds the support at Rs 4,400 (its 200-day moving average), a higher probability of further upside to Rs 5,000-5,500 exists.
Risk Factors
  • Vedanta stock has already rallied significantly and Jain advises avoiding it at the prevailing high levels until it tests the Rs 280-290 support zone.
  • Traders are cautioned against entering Vedanta positions immediately after its recent rally, suggesting a wait for a pullback before considering fresh entries.
Full Analysis
Vedanta Ltd and Hindustan Aeronautics Ltd (HAL) are the primary subjects of a market analysis by Nilesh Jain, Head VP of Technical & Derivatives Research at Centrum, presented on Business Today Television's "Daily Calls." Jain addresses two specific stock scenarios: Vedanta, following its recent demerger where value unlocking has begun but related entities remain unlisted, and HAL, the defence PSU. Regarding Vedanta, Jain advises caution due to prevailing high levels after a rally, noting that traders should wait for a price test in the Rs 280-290 range before making fresh entries rather than buying at current highs. Conversely, Jain identifies HAL as his preferred bet within the defence sector, citing a bullish technical setup where the stock is trading above long and short-term moving averages and has broken out from a falling trend line previously established at Rs 4,550. Jain projects a short-term price target for HAL at Rs 5,000 with a longer-term potential reaching Rs 5,500 or higher if the current momentum continues. He explicitly recommends adding HAL to portfolios for both long-term and short-term momentum plays but instructs investors to maintain a strict stop loss at Rs 4,400, which corresponds to the stock's 200-day moving average, as holding above this level suggests continued probability of reaching the projected targets. The article concludes by detailing how viewers can access this advice through Daily Calls on Business Today Television via WhatsApp or YouTube streams, accompanied by standard disclaimers that these views are advisory and not definitive investment instructions from the publisher.