Stock Recommendations

SENSEX (27531) BSE Sensex continued it weakness for 2nd session as recently it failed to hold above psychological 28000 mark. It has been making lower high – lower low from last two trading session and till it doesn’t negate this formation weakness may drag index to lower levels. During the day, it traded with negative bias as selling pressure was seen in most of the sectors. Now it has to hold above 27500 levels for the bulls to take the index towards 27750 levels. However if the index breaks the support level then profit booking might be seen and bears may drag it towards 27150 levels. 

INTRADAY PICKS

TATA MOTORS (LTP: 505) SELL For today's trade, short position can be initiated only in Rs.509- 513 range for target of Rs.488 with a strict stop loss of Rs.518.

INDUSINDBANK (LTP: 854) SELL For today's trade, short position can be initiated only in Rs.860-865 range for target of Rs.840 with a strict stop loss of Rs.870.

Technical Stock Recommendation

SKS MICRO, witnessed sharp sell-off from levels of about Rs.525 to recent low of about Rs.421 in past two months. 

This has helped stock to move out from the overbought zone. Technically, MACD and RSI indicate a formation of short term bottom around recent low of Rs.421. MACD is just on the verge to move above the neutral zone while RSI sustaining above 50 mark indicates strength in the stock. 

Volume in the counter continues to stay on the lower side in line with the market action. Short term averages placed in the range of Rs.445 to Rs.460 will provide support in case of sharp decline in near term. 

On upside, till the time stock is able to manage its close above level of Rs.420, we anticipate the stock to have potential to even move towards the level of Rs.520-540. The current weakness in market may see stock witnessing a minor dip in near term that should be used to accumulate the stock.

Thus, for today's trade, long position can be initiated only in Rs.450-430 range for target of Rs.520-540 with a stop loss of Rs.415.