HDFC Bank, TCS, HUL: Trading strategies for these buzzing blue-chip stocks

Domestic equity markets posted mild gains during the trading session on Thursday before the US policy outcome. However, selling pressure in select heavyweight counters kept the gains in check. The BSE Sensex added 89.64 points, or 0.12 per cent, to 72,101.69, while NSE's Nifty50 rose 21.65 points, or 0.10 per cent, to 21,839.10 for the day.

Some buzzing blue-chip stocks namely HDFC Bank Ltd, Tata Consultancy Services Ltd (TCS) and Hindustan Unilever Ltd (HUL) are likely to remain under the spotlight of traders for the session today. Here is what Laxmikant Shukla, Technical Research Analyst, YES Securities have to say on these stocks ahead of Thursday's trading session:

HDFC Bank | Caution | Resistance: Rs 1,560 | Support: Rs 1,360
HDFC Bank has undergone a gradual decline from its peak at Rs 1,721 but now appears to be stabilizing and finding support around the Rs 1,360-1,380 range which has proven to be a robust support level based on historical chart patterns. Recent indicators suggest a potential turnaround with the RSI poised for a positive crossover on the weekly chart. There's evident improvement, signaling significant upside potential and continued momentum. A decisive close above Rs 1,472 would reinforce this trend, likely paving the way for further upward movement towards the next target of Rs 1,560 in the foreseeable future. Consider initiating a buy position within the Rs 1,420-1,430 range with a stop loss set at Rs 1,360 based on daily closing prices.

Hindustan Unilever | Caution | Resistance: Rs 2,415 | Support: Rs 2,110
Hindustan Unilever (HUL) has displayed a bearish sentiment, evidenced by its breakdown from the inverted pole and flag pattern observed on the daily chart. Currently, it is trading below all its key moving averages including the 20, 50, 100 and 200-day SMAs indicating sustained downward pressure. Additionally, the daily RSI remains consistently lower compared to its reference line, further confirming the bearish trend. The formation of lower highs and lows on the daily chart suggests a continuation of weakness, reinforcing the bearish outlook. Any recoveries in price should be viewed as opportunities to consider selling positions as the overall trend appears to be downward.

Tata Consultancy Services | Caution | Resistance: Rs 4,100 | Support: Rs 3,950
TCS has experienced significant downward pressure in the past two days resulting from negative news developments. The stock has declined by approximately 6 per cent from its recent peak. This sharp selloff has brought prices down towards the previous multi-week support zone around Rs 3,950. Additionally, at a similar level, the line of parity is evident, which could offer support for the stock. Looking forward, if the mentioned support levels hold, we may anticipate an oversold bounce towards the Rs 4,060-4,100 zone. However, failure to maintain the mentioned support level would indicate a continuation of the selling pressure potentially pushing the stock towards Rs 3,780.

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