Stock Recommendations

SENSEX (27886) BSE Sensex opened positive but failed to hold its level and fell down sharply towards 27802 levels. The bears have been dominating the bulls from last four trading sessions as the index continues to make its negative price pattern of lower highs - lower lows. It finally ended the day with the loss of around 556 points. Now, it has to hold

above its 27750 levels to regain its strength and witness buying interest towards 28000 and 28200 levels while on downside immediate support exists at around 27750 followed by 27500 levels.

STOCK IN FOCUS

ICICI Bank closed 0.5% higher in a weak market yesterday, outperforming the benchmark NIFTY by 2.3%. We expect the bank to report healthy growth in balance sheet along with strong growth in operating profit. Over the last few years, the bank has proven its competitive advantages over other private banks through higher fee income generation capability, well-managed assets quality and better managed other financial business subsidiaries. ICICI Bank is well placed to capitalize on the expected improvement in the economic cycle, as it has leadership position in both retail and corporate banking segments. 

We have a BUY recommendation on the stock with a SOTP based Target Price of Rs394, wherein the standalone bank has been valued at 2x FY17E Adj. BV of Rs352 and the subsidiaries fetch Rs42/share after factoring in holding company discount of 20%.

INTRADAY PICKS

DLF (LTP: 146) SELL For today's trade, short position can be initiated only in Rs147-149 range for target of Rs142-140 with a strict stop loss of Rs150. 

IBREALEST (LTP: 62) SELL For today's trade, short position can be initiated only in

Rs.64-65 range for target of Rs.60 with a strict stop loss of Rs.66.

BPCL is moving after the consolidation of last twelve trading sessions and has managed to hold its position even after sharp decline in the broader market. It is making a strong price pattern on daily and weekly chart and well placed to see the up move towards 824 and higher levels. Thus traders can buy the stock between 788-796 with stop loss of 776 for the upside target of 824 levels. 

RALLIS is moving after the long consolidation of four weeks. Recently it has taken support near to 222 zones and looks attractive in terms of risk reward ratio as comparatively moving with rising trading volumes. Traders can buy the stock between 228-230 with stop loss of 222 for the upside target of 243 levels. 

Positional Stock Recommendations 

IDEA, witnessed sharp sell-off in yesterday's trade after creating short term top around level of Rs205. Majority of technical parameters, i.e. MACD, RSI and Stochastics indicate further dip probably towards level of Rs170-165 in short term. MACD has already given negative crossover while RSI has just reversed after moving into the overbought zone.

Thus, for today's trade, short position can be initiated only in Rs.198-205 range for target of Rs.170 to Rs165 with a stop loss of Rs.215.