Stock Recommendations

SENSEX (27958) BSE sensex opened on a positive sentiment as it managed to recapture its 27950 levels and sprang back to life as the index settled the day with half of a percent gains that is of around 150 points buying in Infra, Oil, IT and Pharma sector. It continued forming its indisputable formation of higher highs of last six trading sessions and now the index needs to hold above 27950 levels for the bulls to take the index above its psychological 29000 levels. However if the index breaks the support level of 27700 then

profit booking might be seen and bears may drag the index towards 27500 levels. 

INTRADAY PICKS

JSW Energy (LTP: 109) SELL For today's trade, short position can be initiated only in Rs.111-113 range for target of Rs.104 with a strict stop loss of Rs.114.50.

Dr. Reddy's Lab (LTP: 3,643) BUY For today's trade, long position can be initiated only in Rs.3,610-3,595 range for target of Rs.3,690 with a strict stop loss of Rs.3,580. 

RECLTD is moving after taking support at its 284-290 zones and negated its negative pattern of lower highs lower lows on weekly chart. It looks attractive in terms of risk reward ratio as moving up with rising trading volumes. Thus traders can buy the stock between Rs.303 to 306 with stop loss of 298 for the upside target of 317.5 levels.

SUN PHARMA is moving after the long consolidation of last three weeks and regained its psychological 1000 levels. It gave the highest daily close of last 22 trading sessions and its RSI is also supporting the up move. It has been taking support at its 35, 13 and 50 DMA and showing the potential to continue this rally towards 1029 levels. Thus traders can buy the stock between Rs.984 to 994 with stop loss of 969 for the upside target of 1029 levels.

Technical Stock Recommendations

Colgate Palmolive has given a breakdown from rising channel pattern with comparatively high volume and later even failed to recover, which is quite negative for the stock. Though, the stock is trading above its long-term moving averages (100-days SMA & 200-days SMA), closed below its short-term to medium-term moving averages (20-days EMA & 50-days EMA respectively), which are sloping downwards. Falling Stochastic (5,3), RSI below 50-mark and negative cross-over in MACD (12,26,9) are also signaling short-term weakness. We believe, stock will remain in pressure and visit April month's low (Rs1,910) and 200-days SMA (Rs1,820) thereafter.

Thus, for today's trade, short position can be initiated only in Rs.2,030-2,050 range for target of Rs.1,910-1,820 with a closing based stop loss of Rs.2,110.