Osho Krishan is bullish on these two HDFC group stocks; here's why

HDFC AMC is currently hovering just near its 21 and 50 DEMA and far above the long-term exponential moving average (200 DEMA), suggesting inherent strength in the counter

BUY HDFC LIFE INSURANCE COMPANY | TARGET: Rs 780 | STOP LOSS: Rs 620

HDFC Life has corrected over 7 per cent from the recent high of Rs 731 in the last couple of trading sessions amid block deals that took place at a discounted rate. Currently, the stock is placed at its strong demand zone as historically these levels have provided firm consolidation to the counter. Even, the cluster of moving averages is expected to provide a cushion to the fall and gradual recovery could be expected from here on. The sloping trend-line is acting as strong support to the counter, and even the technical indicator, 14 period RSI seems to reverse its trend near the oversold region. All these are the early sign of trend reversal and one may accumulate the stock from a short to medium-term perspective.

BUY HDFC ASSET MANAGEMENT COMPANY LTD | TARGET: 3160 | STOP LOSS: 2780

HDFC AMC is placed at a strong support zone of 61.80% of the Fibonacci retracement of the recent low of Rs 2,070 to the swing high of Rs 3,360 odd levels. The stock is currently hovering just near its 21 and 50 DEMA and far above the long-term exponential moving average (200 DEMA), suggesting inherent strength in the counter. On the daily time frame, the stock has reversed from the lower band of the Bollinger (20, 2) and is headed towards the mean, indicating demand at lower levels. Historically, the lower band has always provided resurgence in the counter. On the oscillator front, the MACD is hovering well above the signal line and the 14 period RSI has also witnessed a positive crossover, affirming the bullish stance in the counter.

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Disclaimer: Osho Krishan is senior manager - equity research at Anand Rathi Shares & Stock Brokers. Views expressed are personal.