Stock Recommendations

SENSEX (28708) BSE Sensex opened positive above its 28500 levels and witnessed a calm trade throughout the day. The index has managed to heal for the fourth day and continued making higher highs- higher lows price pattern and closed the day with a gain of around 191 points. Now, it has to hold above 28750 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

KNR Construction (KNRC) gained ~3% in trade yesterday and this was supported by ~7x its 2-week average volumes on boththe exchanges combined. KNRC has Rs12bn of order backlog and is currently L1 in orders worth Rs16bn. The total gross order book of Rs.28bn is 3.3x FY15E revenues and lends visibility to future growth. With new road projects worth Rs.450bn expected to be awarded by 1QFY16E, KNRC stands to be a major beneficiary. Strong cash flow generation and high promoter holding also give comfort on future growth. Low D/E levels (0.2x) in comparison to its peer group, strong customer advances and high margins have resulted in robust cash flows. KNRC stands out as a leader on the competitive mapping of the EPC players. Superior execution, low debt/equity, positive cash flows along with the low infra asset exposure are the contributing factors. 

We have a BUY rating on the stock with a Target Price of Rs.492.

INTRADAY PICKS

DRREDDY (LTP: 3755) BUY For today's trade, long position can be initiated only in Rs.3710- 3690 range for target of Rs.3800 with a strict stop loss of Rs.3670.

SYNDICATE BANK (LTP: 103) BUY For today's trade, long position can be initiated only in Rs101-99 range for target of Rs.107-110 with a strict stop loss of Rs.98. 

HINDPETRO crossed its major hurdle of 670 levels and registered lifetime high of 678 levels. It has taken support at its 13 DMA and gave perfect example of resistance becoming support. It has been forming higher top higher bottom formation on monthly chart from last twenty months and also gave the highest daily close. One can buy the stock between 660-667 with stop loss of 650 for the upside target of 690 levels.

TECHM has corrected by 18% from 738 to 620 levels and now taken support at recent low levels. It has negated the negative trend and has been making higher highs- higher lows from last five trading sessions and retraced 50% of the losses it made recently. It looks attractive in terms of risk reward ratio so traders can buy the stock between 660-666 with stop loss of 650 for the upside target of 687 levels

Positional Stock Recommendations

Titan Ind, after registering a low of Rs385 on during last week of the March 2015, witnessed a smart bounce back towards the level of Rs411 in yesterday's trade. The upmove was backed by increase in volumes. Technically, we believe stock has formed a good base in the range of Rs385-395 coinciding with short term averages as well as the channel support. Technical oscillators and indicators are suggestive of short term bottom in place with probable move towards level of Rs460 on upside. 

Thus, for today's trade, long position can be initiated only in Rs.400-385 range for target of Rs.460 with a stop loss of Rs.375