Adani Total, HPCL, PI Industries: How to trade MF rejig-related stocks

Adani Total Gas, Apollo Hospitals, Cholamandalam Investment, according to reports, are among the stocks that are likely to get added to the mutual fund (MF) large-cap universe. On the other hand, Petronet LNG, PI Industries and Hindustan Petroleum Corporation (HPCL) could get demoted from the large-cap list to mid-cap list.

Techncial charts indicate room for an upside for the likely inclusions. Here are trading strategies for the ones that may make it to the list, and the ones likely to get demoted.

Adani Total Gas Ltd (ATGL)

Likely target: Rs 1,480 - Rs 1,500

Upside potential: 5.71% - 7.14%

The negative divergence on the Relative Strength Index (RSI) reflects profit booking and resistance at higher levels. The counter needs to conquer Rs 1,400 mark to decisively breakout on the upside, as per the daily chart. If that happens, the upside bias may see Rs 1,480 and then Rs 1,500 get breached. That’s said, until the stock defends the closing basis support of Rs 1,200 levels, the upside bias is likely to see buying momentum.    CLICK HERE FOR THE CHART

Apollo Hospitals Enterprise Ltd (APOLLOHOSP)

Likely target: Rs 3,285 -  Rs 3,340

Upside potential: 3% - 4.70%

The stock has advanced with the support of the 50-days moving average (DMA), located at Rs 3,107 levels. Until this support is held actively, the upside bias is anticipated to see a reversal in trend. The immediate resistance comes in at Rs 3,285 and then at Rs 3,340 levels, as per the daily chart. The current scenario shows the sideways movement for now with volumes staying sluggish.  CLICK HERE FOR THE CHART

Cholamandalam Investment and Finance Company Ltd (CHOLAFIN)

Outlook: Consolidation phase

The sideways movement in the range of Rs 600 to Rs 500 since the past few days indicates a consolidation phase for this stock, as per the daily chart. Any breach of this range may result in 70-100 points rally. The Moving Average Convergence Divergence (MACD) is not showing signals of stability above the zero line, demonstrating cautious sentiment.  CLICK HERE FOR THE CHART

Petronet LNG Ltd (PETRONET)

Likely target:  Rs 222 -  Rs 218 (after breaking Rs 234)

Downside potential: 5% - 6.84%

The formation of the “Head and Shoulder” pattern suggests a bearish sentiment below the breach of Rs 234 levels, as per the daily chart. This move is supported by RSI, which has breached the 55 value on the downside. The breakdown may see Rs 222 and Rs 218 levels. On the higher side, the resistances are placed at Rs 242 and Rs 247 levels.  CLICK HERE FOR THE CHART

Hindustan Petroleum Corporation Ltd (HINDPETRO)

Likely target: Rs 305 and Rs 311 (after closing above Rs 290)

Upside potential: 5.17% - 7.24%

The medium-term outlook remains bullish with a breakout above Rs 260 levels. This suggests the sentiment remaining firm for the coming months. The stock is not witnessing any major decline in the overbought category of RSI, which is suggestive of a positive bias. A close above Rs 290 may result in a rally towards Rs 305 and then Rs 311, as per the daily chart. CLICK HERE FOR THE CHART

PI Industries Limited (PIIND)

Likely target: Rs 2,350 -  Rs 2,280 (below Rs 2,470)

Downside potential:  4.86% - 7.69%

PI Industries has broken the trendline support at Rs 2,650 levels. Also, the RSI support of 53 value has been negated. All these signal weakness. The volume scenario is also not favour. A breakdown below Rs 2,470 may see the stock slip to Rs 2,350 and then Rs 2,280 levels, as per the daily chart. CLICK HERE FOR THE CHART