BUYING INTEREST OF INVESTORS IN LARGE CAP COMPANIES According to the technical experts, blue chips companies like Infosys, Hindustan Unilever (HUL), Dabur, HDFC, Bharti Airtel, and many others could reach their all-time low as investors are thinking to return to blue chips companies for losing the steam in financial markets. After the broader markets have witnessed a stellar upward movement, a strong buying interest is seen in the large-cap quality companies. The technical and derivatives head of Sanctum Wealth Management, Ashish Chatrumohta, said that these blue-chip companies’ stocks look fascinating not only for short term investment but also for the middle term investment perspective.
Many of these quality large-cap companies had a negative or lower single-digit return in the last three months of the year 2020. There is a rise in Nifty and Sensex of about 12 percent in the previous three months. The statistics show that most of the mid and small-cap companies’ valuation is very expensive, given their uncertain earnings.
A long-term indicator showed that due to the downward drift, many of these companies’ stocks have come to their 200 days moving average (DMA). The analysts do not expect a bounce on the current level on these stocks until and unless there will be a massive sell-off.
The analyst of Reliance Securities, Vikas Jain, said that the reason for Hindustan Unilever (HUL) and HDFC’s outperformance was their technical factors. Hindustan Unilever (HUL) has seen a positive pullback on various counts and is near its long term support zone. The company indicates a bullish set up for its stocks that are above 40 levels and thus have the upper hand. On the other hand, it is reported that HDFC is also near the monthly average and is outperforming from the current levels.