Stocks Recommendations

SENSEX (27226) BSE Sensex opened flat and oscillated between positive and negative territory throughout the session, ahead of derivatives settlement this Thursday. The index was not able to hold previous day gains and closed with a loss of 170 points. Now, it has to cross and hold its 27500 levels to bounce back and witness buying interest towards 27700 and 28000 levels while on downside immediate support exists at around psychological 27000 levels.

STOCK IN FOCUS

Axis Bank closed 1.1% higher, outperforming the Nifty by 1.7%. The bank has posted a healthy growth of 18.4% yoy and 14.8% qoq to Rs21.8bn 4QFY15 led by the 21.4% yoy and 31.8% qoq growth in other income and healthy growth in loan book. What is more commendable is that the bank has maintained its asset quality even after consistently outperforming industry credit growth. Over the last few years, Axis Bank has proven its competitive advantages over other private banks through well managed low cost deposits franchise, better geographical diversification, and higher fee income generation capability along with well managed assets quality. These have led to a re-rating in the stock, which is expected to continue going ahead. 

We reiterate our BUY recommendation on Axis Bank with a revised Target Price of Rs651, valuing the stock at 2.5x FY17E Adjusted Book Value.

INTRADAY PICKS

NTPC (LTP: 152) BUY For today's trade, long position can be initiated only in Rs.150-148 range for target of Rs.158 with a strict stop loss of Rs.147.

YES BANK (LTP: 834) BUY For today's trade, short position can be initiated only in Rs.825-820 range for target of Rs.845-850 with a strict stop loss of Rs.815. 

BHARATFORG has recently taken support near to 1145-1160 zones. It is moving after the consolidation of last seven trading sessions and holding the gains above 1220 zones. Now it has to hold the current levels to continue its positive movement towards 1278 and higher levels. Traders can buy the stock between 1222-1234 with stop loss of 1203 for the upside target of 1278 levels.

THERMAX has recently corrected by more than 30% in last seven weeks from 1317 to 920 levels but now it is taking support near to 920 zones and making higher lows from last three trading sessions. It is turning from the lower band of the trading range thus looks attractive in terms of risk reward ratio. The narrow range formation and oscillators are also

supporting the bullish reversal. Thus, traders can buy the stock between 965-974 with stop loss of 950 for the upside target of 1008 levels.