Stock Recommendations

SENSEX (27676) BSE Sensex opened on a bearish note and continued trading in the negative territory for the fifth consecutive session. It snapped all the gains of previous two weeks and breached its 50, 35 and 13 day moving average. It finally ended the day with the loss of around 210 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

HCL Tech (HCLT) posted revenue of US$1,491mn, flat sequentially on 2.7% constant currency growth and -2.7% cross currency impact, missing our estimates, however, we remain constructive based on continuity on strong deal bookings and lower growth skew of infrastructure services, as application services and engineering services accelerate ahead. HCLT’s operating margins declined in 3Q due impact of cross currency as well as due to lower utilization (100bp decline in blended utilization to 81.9%). Contract bookings were strong during the quarter as HCLT maintained its US$1bn quarterly rate for 14 transformational deals and management envisages a better deal-pipeline as compared to the prior quarter across services. Client metrics also exhibited steady growth with 18 client additions in >US$1mn band and 4 additions in >US$20mn band. 

We expect US$ revenue/ EPS to grow at 13.6%/11.6% CAGR over FY15E-17E; we’ve factored EBIT% at 20.9%/22.3% for FY16E/FY17E as compared to 23% for 9MFY15. We have a Buy on the stock with target of Rs1,075.

INTRADAY PICKS

ADANIPORT (LTP: 314) BUY For today's trade, long position can be initiated only in Rs.312- 308 range for target of Rs.325 with a strict stop loss of Rs.306.

INFOSYS (LTP: 2143) BUY For today's trade, long position can be initiated only in Rs.2130-2120 range for target of Rs.2180 with a strict stop loss of Rs.2100.

HEXAWARE is moving after a consolidation of last three weeks and has formed bullish engulfing candle in previous trading session. It has been forming higher top higher bottom price formation on daily, weekly and monthly chart. Traders can buy the stock between 318 to 322 with stop loss of 312 for the upside target of 345 levels. 

IDBI is moving in an upward channel from last eight months. It gave the highest daily close of last thirty seven weeks and has taken support at its 50DMA. It has been holding its position even after market pressure thus showing the potential to move towards 86.50 and higher levels. Traders can buy the stock between 80 to 82 with stop loss of 78.5 for the upside immediate target of 86.50 levels.

Positional Stock Recommendations 

IGL, closed yesterday's trade on a strong note as it gained 3.2% outperforming the benchmark index by about 4%. Majority of technical parameters, i.e. MACD, RSI and Stochastics indicates short term bottom in place with MACD post giving positive crossover, has moved past the neutral line while RSI has once again move above 50 mark indicating strength in the underlying.

Thus, for today's trade, long position can be initiated only in Rs.420-405 range for target of Rs.470 to 480 with a stop loss of Rs.395.