Stock Trading Recommendations

SENSEX (27644) BSE Sensex opened gap down and descended towards 27614 levels. It traded with negative bias which was led by selling pressure across the board especially in Banking, FMCG and Metal sector stocks. The market breadth in the index was negative in the ratio of 1065:1415 while 107 scrip remained unchanged. Now the index needs to cross and hold above 27700 levels for the bulls to take the index above 27900 levels. However if the index breaks the support level of 27600 then profit booking might be seen and bears may drag the index towards 27350 then 27100 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.

HINDPETRO is taking support at its 13 DMA and has managed to hold the gains even after pressure in the broader market. It has been forming higher top – higher bottom formation daily, weekly and monthly chart and negated the weakness of previous session with rise in trading volumes. Thus traders can buy the stock between Rs.609 to 615 with stop loss of 600 for the upside target of 636 levels.

SUNPHARMA is moving after the long consolidation of last three weeks and regained its psychological 1000 levels. It has been taking support at its 35, 13 and 50 DMA and forming higher lows from last five trading sessions on daily chart. Thus traders can buy the stock between Rs.982 to 992 with stop loss of 967 for the upside target of 1027 levels.

Technical Stock Recommendations

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.