Chennai Petro, HEG, Nuvama among top MF buys in Dec quarter; tech view here

Technical charts suggest that HEG stock is likely to witness another 25 per cent fall from present levels; while Nuvama Wealth could witness a relief rally towards Rs 6,125.

Domestic institutional investors (DIIs), a combination of mutual funds and insurance companies, doubled their shareholding in terms of absolute shares held in 14 individual stocks at the end of the December 2024 quarter as against the holding at the end of September quarter.  Out of these 14 companies, DIIs - mostly mutual funds (MFs) have more than tripled their stake in 7 stocks namely - Chennai Petroleum Corporation, Godawari Power and Ispat, Dr. Reddy's Laboratories, HEG, Sun Pharma Advanced Research Company, Nuvama Wealth Management and NMDC.  The shareholding pattern from ACE Equity shows that DIIs stake in Chennai Petro and Godawari Power zoomed by 589 per cent and 550 per cent on a quarter-on-quarter (QoQ) basis. Holding in Dr.Reddy's jumped by 442 per cent, as DIIs acquired additional 13.7 crore shares of the pharma giant in the December quarter. Other 4 stocks saw holdings rise in the range of 211 - 378 per cent.    On the other hand, DIIs reduced stake in 8 stocks in the range of 20 - 43 per cent in the said quarter. These stocks are - IIFL Finance, Tanla Platforms, RBL Bank, Manappuram Finance, Gujarat Ambuja Exports, Adani Wilmar and BLS International Services and Natco Pharma.  Given the DIIs buy list, should you buy the same stocks at present levels? Here's a technical outlook on 3 most bought shares by mutual funds in the December 2024 quarter.  Chennai Petroleum Corporation  Current Price: Rs 522  Upside Potential: 15%  Downside Risk: 8.8%  Support: Rs 500  Resistance: Rs 560  Chennai Petro stock has been in a downtrend for the last seven months, the stock has tumbled nearly 57 per cent from a high of Rs 1,178 in July 2024 to a low of Rs 508 in January 2025. The long-term monthly chart shows that the recent fall has come after a sharp 87 per cent rally in the preceding 1.5 year. CLICK HERE FOR THE CHART  Technically, the stock has retraced more than 61.8 per cent (Golden ratio) of the preceding rally. Further, the stock is seen trading close to its super trend line on the monthly scale at Rs 476 - this is likely to act as a strong support for the stock. Even as the stock languishes in oversold zone, the overall bias for the stock is likely to remain tepid as long as the stock trades below Rs 600. Interim support for the stock is placed at Rs 500, while intermediate resistance can be expected around Rs 560.    HEG  Current Price: Rs 367  Downside Risk: 24.8%  Support: Rs 328; Rs 305  Resistance: Rs 400  HEG stock has tumbled over 42 per cent in the last three months, and is now seen trading below its 20-MMA (Monthly Moving Average) for the first time since June 2023. The overall bias for the stock is likely to remain negative as long as the stock trades below Rs 400. The stock seems headed towards the long-term support at Rs 276. Interim support for the stock can be anticipated around Rs 328 and Rs 305 levels. CLICK HERE FOR THE CHART  Nuvama Wealth Management  Current Price: Rs 5,585  Upside Potential: 9.7%  Support: Rs 5,200; Rs 4,900  Resistance: Rs 5,665; Rs 5,780; Rs 6,000  Nuvama Wealth witnessed an intra-month fall of 35 per cent in the month of January, as the stock hit a high of Rs 4,971 and a low of Rs 2,677. At present, the stock looks weak on the charts, but is seen trading in a fairly oversold zone. Hence, some pullback at the counter can be anticipated.  As such, key support for the stock stands at Rs 4,900 levels, with near support likely around Rs 5,200 levels. On the upside, the stock needs to break and trade consistently above Rs 5,780 for a likely rally towards Rs 6,125 levels. Interim resistance for the stock exists at Rs 5,665 and Rs 6,000-mark. CLICK HERE FOR THE CHART