Stocks Recommendations

SENSEX (27396) BSE Sensex opened positive and traded in broader range of 420 points with positive bias. The index extended its morning movement by closing in positive region, with a gain of 220 points. Now, it has to cross and hold its 27500 levels to witness bounce back move towards 27750 and psychological 28000 levels while on downside immediate support exists at around 27000 levels.

STOCK IN FOCUS

Cera Sanitaryware rose over 4% in yesterday’s trade post the reinstatement of confidence by the management in its 4QFY15 result concall in the backdrop of a lower-than-expected 4QFY15 performance. The management has indicated that for FY16E and FY17E, the margins are expected to expand driven by lower fuel costs and increased focus on premium category products. Additionally, the revenue growth is also expected to

be back on track as management has reworked its marketing strategy post the weak revenue growth in 4QFY15. We are confident of the company’s high growth in sanitaryware industry driven by the huge housing and sanitation demand in the country, which has also got the required thrust by the Swachh Bharat Abhiyaan. 

We believe Cera is well placed to benefit from this opportunity and value the stock at a P/E of 27x on FY17E EPS arriving at a Target Price of Rs2,488 and recommend a BUY.

INTRADAY PICKS

AXISBANK (LTP: 535) BUY For today's trade, long position can be initiated only in Rs.522-518 range for target of Rs.545 with a strict stop loss of Rs.514.

DLF (LTP: 128) SELL For today's trade, short position can be initiated only in Rs.132-133 range for target of Rs.124 with a strict stop loss of Rs.134.5.

BHARATFORG has recently taken support near to 1145-1160 zones. It is moving after the consolidation of last seven trading sessions and crossed and closed above its hurdle of 1200 levels. It looks attractive in terms of risk reward ratio and now it has to hold the current levels to start fresh leg of rally towards 1246 and higher levels. Traders can buy the stock between 1192 to 1204 with stop loss of 1172 for the upside target of 1250 levels. 

FINOLEX CABLES is moving after taking multiple supports near 50 day moving average and recovered the loss made recently by around 50% retracement levels. It negated its immediate negative trend thus indicating that the stock has the potential to move towards 280 and higher levels. Traders can buy the stock between 269 to 272 with stop loss of 265 for the upside target of 281 levels. 

Technical Stock Recommendations

SBI, recovered part of the previous trading loss as it gained about 2% in yesterday's trade. Despite the uptick in the price, stock continues to remain below its 200 day SMA which is currently placed around level of Rs278. Both MACD and RSI continues to depict the weak trend in the stock with next major support placed only at Rs235-240 range once the stock closes below level of Rs255. Combination of short and long term averages in the range of Rs280 to Rs300 will keep stock under pressure at higher levels. 

Reiterating our earlier view, for today's trade, short position can be initiated only in Rs.280-290 range for target of Rs.240 with a stop loss of Rs305.