Stocks Recommendations

SENSEX (28442) BSE Sensex opened positive but traded in the negative territory throughout the day for the third trading session. It witnessed selling pressure at higher levels and shed its gains by 700 points thus retracing the by almost 38.2% retracement level. Finally it ended the day in the negative territory with the loss of 225 points. Now, it has to hold above its 28800 levels to regain its strength and witness buying interest towards 29000 and 29250 levels while on downside immediate support exists at around 28350 followed by 28200 levels.

STOCK IN FOCUS

JSW Steel closed 2% higher on above average volume in a weak Friday trade. The gains were supported by the news of Jindal Saw shareholders approving the proposal for entering into contract worth up to Rs10,000cr with JSW Steel, from which it purchases raw material. We have been positive on JSW steel as going forward, with higher use of imported iron ore, increase in sales of value-added products and revival in domestic steel

demand; margins are set to improve leading to higher profitability. We believe that non-integrated players like JSW steel are better placed in the current scenario. 

At the CMP, we maintain our BUY rating on the stock with a Target Price of Rs1,461.

INTRADAY PICKS

Petronet LNG (LTP: 185) SELL For today's trade, short position can be initiated only in

Rs188-190 range for target of Rs178 with a strict stop loss of Rs193. 

Amtek Auto (LTP: 168) BUY For today's trade, long position can be initiated only in Rs164-162 range for target of Rs.174 with a strict stop loss of Rs.159. 

HINDALCO is showing early sign of trend reversal and turning from the lower band of trading range. It is moving after taking support at its 35 DMA. It looks attractive in terms of risk reward ratio as it is moving after long consolidation and sharp correction. Traders can buy the stock between 138 to 142 with stop loss of 135 for the upside target of 145.5 levels.

ITC has been moving upwards from last three weeks and holding the gains even after the market pressure. It has been making higher highs higher lows from last three weeks and also crossed above its 50DMA. It snapped the losses it made recently by more than 38.2% retracement level and showing the potential to move towards Traders can buy the

stock between 345 to 348 with stop loss of 340 for the upside target of 360 levels. 

Positional Stock Recommendations 

Engineers India witnessed decent up move after visiting Rs187, but later faced hurdle around its 100- days SMA (i.e. placed around Rs216). We believe stock will remain in pressure till the time it trades below the mentioned moving average and visit lower level. Negative cross-over in Stochastic (5,3) and reversing RSI (14,9) from 60-mark are also indicating near-term weakness in the stock.  

Thus, for today's trade, short position can be initiated only in Rs.216-220 for target of Rs.190 with a closing based stop loss of Rs.230.