Short & Medium Term Stocks Recommendations

SENSEX (28162) BSE Sensex opened positive and witnessed smart recovery towards 28455 levels, however in the last hour of the trade it failed to sustain the higher levels and plunged down substantially by 325 points from day’s high towards 28130 levels and ended the day on a negative note with the loss of 30 points. 

Now index needs to cross and hold above 28250 levels to move up towards 28500 and 28800 levels while on the downside, support exists at around 28000 and below that bears may drag the index towards 27850 levels.

STOCK IN FOCUS

Crisil closed flat in yesterday’s volatile session recording 2.1x its 2 week average volume. CRISIL continues to maintain its leadership position and has sailed through the challenging year with topline growth of 12.8% and EBITDA growth of 8.1% for CY14. 

Further, the company has focused on new product development and innovations during the year which adds to our confidence. 

We believe, with gradual improvement in the economy, CRISIL will be able to accelerate its top line performance at a higher pace, which shall also eventually convert into better operating leverage. 

We remain positive on CRISIL’s business prospects and expect its topline and bottomline to grow at a CAGR of 17.5% and 30.3% respectively over CY14-16E. 

Thus, we recommend BUY with Target Price of Rs.2,234.

INTRADAY PICKS

COLPAL (LTP: 2057) BUY For today's trade, long position can be initiated only in Rs.2020-2010 range for target of Rs.2080 with a strict stop loss of Rs.1990. 

ZEEL (LTP: 354) BUY For today's trade, long position can be initiated only in Rs.346-342 range for target of Rs.361 with a strict stop loss of Rs.340. 

JSWENERGY has given second highest daily close in last 52 weeks and crossed and closed above its immediate hurdle of 120 zones.  It is moving after a consolidation of last seven weeks and holding above 120 may see a fresh move towards its recent high of 126 and higher levels.

The stock has seen higher trading and delivery volumes which is also supporting our positive view. 

Traders can buy the stock with stop loss of 115.50 for the upside target of 125 levels. 

RECLTD started this month with positive sentiment and headed towards 372 levels but fell down in line with the market pressure and again it is trading at attractive price level. It has taken multiple supports near to 325 zones twice in this month and also taken support near to the 50DMA. 

One can buy the stock with stop loss of 323 for the upside target of 345 levels. 

Positional Stock Recommendations

Exide Industries breached seven sessions old falling trend with the gain of 2.4%, where support from its 100-days SMA helped stock to buck the falling trend. In past, stock had witnessed decent reversal post visiting mentioned moving average. 

We believe stock will resume up trend and soon climb higher level, as positive cross-over in Stochastic (5,3) and RSI (14,9) are also in favor of price rise.

Thus, for today's trade, short position can be initiated only in Rs.181-177 for target of Rs.200 with a strict stop loss above Rs.172.