Stock Recommendations

SENSEX (27507) BSE Sensex opened positive and extended its previous session’s gain on positive global cues triggered by a rate cut in China and positive US employment data. The banking and metal sector stocks lead the positive rally to make index close in positive region with a gain of 402 points. Now index needs to hold above 27500 levels to bounce back towards 27700 and 28000 levels while on the downside, support exists at around 27300 and below that bears may drag the index towards 27100 levels.

STOCK IN FOCUS

Ultratech Cement (UCL) gained 4.5% in yesterday’s trade on above average volumes. The company had reported better-than-expected operating performance in its 4QFY15 result, despite subdued volume, mainly supported by improved realizations. We believe that given the company’s constant endeavor to maintain leadership status / market share, self-sufficient clinker capacity and cost controlling measures pertaining to improvement in logistic infrastructure etc., UCL should enjoy higher multiple than its core peers. Further, a successful completion of acquisition in MP may further help to re-rate the stock. At the CMP, the stock is trading at US$192 on EV/tonne on our FY17E estimates. 

We recommend a BUY on the stock with a Target Price of Rs.3,378.

INTRADAY PICKS

Kotak Mahindra Bank (LTP: 1339) SELL For today's trade, short position can be initiated only in Rs.1350-1360 range for target of Rs.1320 with a strict stop loss of Rs.1365.

Indian Oil Corp (LTP: 339) BUY For today's trade, long position can be initiated only in

Rs.336-332 range for target of Rs.348 with a strict stop loss of Rs.330. 

WIPRO is moving after the recent correction of around 24% from 677 to 512 levels. It is showing an early sign of bounce back move in line with the broader market as it turning from the multiple supports of 510-515 zones. It has been consolidating from last two weeks and if sustains current levels then may see an up move towards 555 and higher levels led by short covering activity. One can buy the stock between Rs.530 to 535 with stop loss of 523 for the upside target of 555 levels. 

BAJAJ CORP has taken support near to 405 levels after a correction from 495 to 405 levels. The relative strength index of the stock is also turning from the over old scenario thus may see support base buying interest from lower zones. After a recent fall It looks attractive in terms of risk reward ratio so we are suggesting to buy the stock between Rs.425 to 430 with stop loss of 419 for the upside target of 446 levels. 

Technical Stock Recommendation

Tech Mahindra managed to come out of the short-term falling trend, as stock closed above its 20-days EMA post giving break-out from downward sloping trend line. Positive Stochastic (5,3) and improving RSI (14,9) & MACD (12,26,9) from oversold zone are also signaling short-term trend reversal. As per the current set-up, we believe stock will visit higher level of Rs685 before breaching Rs600 mark.

Thus, for today's trade, long position can be initiated only in Rs.620-610 for target of Rs.685 with a closing based stop loss of Rs.600.