I bought HDFC Bank at ₹1,482 and HDFC at ₹2,437 in April 2021. Please suggest a suitable price range to buy and accumulate these stocks for 3 years.

Purushottam Pandit

HDFC Bank (₹1,479.8): The stock is in a short-term downtrend. Near-term resistance will be in the ₹1,500-₹1,550 region. Chances are high for it to fall towards ₹1,350-₹1,300 — an important support zone — in the coming weeks. Consider accumulating this stock in this ₹1,350-₹1,300 region.

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However, please keep a close watch. Because, in case the stock breaks below ₹1,300 it can extend the fall to ₹1,230-₹1,200 and even lower thereafter. In that case the stock will turn vulnerable for a steeper fall. So, you may have to have a stop-loss at ₹1,260, exit with a loss and wait to re-enter the stock at much lower levels.

HDFC (₹2,586.85): The stock has been in a short-term correction within its long-term uptrend. There is room to see further fall towards ₹2,350-₹2,300 from here. This region between ₹2,350 and ₹2,300 is a strong support, which we expect to hold. So, you can buy more of this stock in this support zone. However, please note there could be chances of a sideways consolidation between ₹2,300 and ₹2,600 for two-three months before a fresh rally begins. So, you will have to wait patiently until the new leg of rise happens.

I have bought ITC at ₹240 and Hero Moto Corp at ₹2,872. What is the short-term and long-term view on these stocks?

Rajan MS

ITC (₹218): ITC has formed a strong base above ₹200 from January till August this year. Though ₹200-₹190 can be tested again, a break below ₹190 could be difficult. You can accumulate at ₹200. But in case ITC falls below ₹190, it can tumble to ₹160-₹150. You can consider two options. One, have a stop-loss at ₹180 and exit the stock with a loss. Buy afresh again at ₹160. Second option could be that if you can afford the loss on a break below ₹190, then you can consider accumulating more at ₹160 and average the price. But, remember that if a fall to ₹160 is seen, then the stock might take time to recover.

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Hero MotoCorp (₹2,461.3): The outlook for the stock is bearish. Strong resistance is at ₹2,700. The stock will have to rise past ₹2,700 decisively to become bullish again. It can fall to ₹2,200 in the near term. A strong break below ₹2,200 will increase the danger of the stock tumbling towards ₹1,700-₹1,650 in the coming months. It is advisable to exit the stock at current levels with a loss. From a long-term perspective, the stock will become a very good buy in the ₹1,700-₹1,650 region where you can consider re-entering it.

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Published on January 1, 2022