Pick for Dussehra: Sumeet Bagadia advises purchasing HDFC Life shares over the holiday season. Reasons why

 Pick for Dussehra: Sumeet Bagadia advises purchasing HDFC Life shares over the holiday season. Reasons why

Stock market news: Due to mixed quarterly profits, increased geopolitical unrest, and a rise in US government rates, benchmark indexes on the local market finished the week in the red, and on Monday, losses continued for a fourth consecutive day. The Sensex and Nifty 50 both fell more than 1%, as broad markets trailed behind the leading indexes. 

The Nifty 50 closed at 19,281.75, down 260.90 points. As of the closing, the Sensex is down 825.74 points at 64,571.88. 

After crossing 65,000, the Sensex finished at its lowest level in four months. The midcap index and the Nifty 50 both finish at their lowest levels in over two months. The Nifty smallcap index dropped 3.80%, while the Nifty midcap 100 finished 2.88% down.

Investors suffered a loss of approximately 7.5 lakh crore in one day as the total market value of the BSE-listed companies fell to roughly 316 lakh crore from 324 lakh crore in the previous session.

Despite the strong performance of private banks and the slight declines in oil prices, according to Vinod Nair, Head of Research at Geojit Financial Services, investor confidence remained low and there was continued broad consolidation in the domestic markets. 

Given the possibility for further escalation of the upheaval in West Asia, the tendency was repeated by international markets. The US 10-year yield has continued to rise as concerns about persistently high interest rates have grown.

Increased risk aversion was seen in the Indian mid- and small-cap sector, banks, commodities, and energy stocks on concerns about a slowdown in growth as a result of rising interest rates and increasing energy costs. Although a short-term period of consolidation is inevitable, the length of this phase will be determined by global circumstances, according to Nair. 

Holiday Stock Pick

Due to Dussehra, the stock market is closed today. HDFC Life Insurance Company Ltd is Sumeet Bagadia's Dussehra Pick 2023 at 642, with a potential price range of up to 620, with a target price of 725 or 775.

According to Sumeet, HDFC Life Insurance Company is now trading at $642. Not so long ago, there was a breakthrough and retest at the breakout level. If the price closes over 650, it may start to go higher.

It is important to consider purchasing possibilities at about 620 in case there are any declines. Additionally, HDFC Life Insurance Company's technical indicators are mostly good.

"The stock has closed above significant moving averages, such as the 50-day, 100-day, and 200-day EMAs, showing strength throughout a range of timeframes. With a reading of 54, the Relative Strength Index (RSI) indicates steady momentum with potential for future price growth.

In conclusion, HDFC Life Insurance Company is poised for a bullish trajectory with a robust base, excellent moving average performance, and balanced momentum. In addition to considering possible long positions, traders and investors could want to be ready to purchase should prices drop to around 620. The 725-775 area might be the short-term goal range, according to Bagadia.