Stock Market Recommendations

SENSEX (28879) BSE Sensex opened and closed on a flattish note and traded sideways as it witnessed a lot of intraday swings in the range. It closed at the opening levels with the marginal loss of 6 points and formed a DOJI candle and continued making higher highs – higher lows for eight consecutive session on daily chart. Now, it has to hold above 28800 levels to continue the buying interest towards 29000 and 29250 levels while on downside immediate support exists at around 28500 and 28250 levels.

STOCK IN FOCUS

Hindustan Zinc closed 6% higher in trade on Friday supported by 1.5x its 2-week average volume and outperformed the CNX Metal index by 5%. The company announced its 4QFY15 production figures, with mined metal production during the quarter increasing by 34% yoy and stood at 269,000 tonnes (up 11% qoq). This resulted in integrated Zinc production increasing by 21% yoy (up 13% qoq) to 217,000 tonnes. It must be noted that this substantial increase is in-line with the company’s guidance of mine plan. We continue to remain positive on the company’s future prospects as we estimate the zinc market to be in deficit over the next 2-3 years, which will support strong zinc prices. 

At the CMP, the stock trades at 3.4x FY17E EV/EBITDA and 9x P/E. We recommend a BUY on the stock with a Target Price of Rs209.

INTRADAY PICKS

AXISBANK (LTP: 568) BUY For today's trade, long position can be initiated only in Rs.560-556 range for target of Rs.585 with a strict stop loss of Rs.549. 

LICHSGFIN (LTP: 461) BUY For today's trade, long position can be initiated only in Rs.454- 450 range for target of Rs.468-472 with a strict stop loss of Rs.447. 

RECLTD is moving after the recent fall from 371 to 317 levels and turning from the lower band of the trading range. It took support at its 13 DMA and broke out from the falling supply trend line. It formed a bullish engulfing pattern on weekly chart and looks attractive in terms of risk reward ratio. Thus, traders can buy the stock between 336 - 340 with stop loss of 331 for the upside target of 352 levels

Positional Stock Recommendations

Yes Bank, has been consolidating between levels of Rs895 to Rs780 since past three months. Over last few trading sessions, we have seen sudden pick up in volumes for the stock while at the same time, both MACD and RSI have given positive crossover and is indicative of short term up move in the offing. On downside, stock has multiple support in the range of Rs800 to Rs780 while on the upside, any close above the short term hurdle of Rs895, we may see stock moving towards level of at least Rs940/1,000.

Thus, for today's trade, long position can be initiated only in Rs.820-800 range for target of Rs.940 with a stop loss of Rs.775.