Stock Market Recommendations

SENSEX (28112) BSE Sensex opened positive but continued to trade in a lackluster manner for the fifth consecutive session. It plunged down by 162 points from day’s high of 28249 levels towards intraday low of 28087 levels and ended the day with the loss of around 50 points. 

Now index needs to cross and hold above 28500 levels to bounce back towards 28800 and 29000 levels while on the downside, support exists at around 28000 and below that bears may drag the index towards 27850 levels. 

STOCK IN FOCUS

JK Lakshmi Cement (JKLC) corrected merely by ~0.7% in yesterday’s weak market. We believe that JKLC will continue to witness sound volume growth in ensuing years (~13% CAGR over FY14-FY17E) on the back of favorable demand environment and new capacities.  Further, JKLC’s constant endeavor to trim its fuel and other operating costs will eventually bear fruit and aid margins to remain strong. 

Given its upcoming capacities in the next 12 months, operating synergies displayed

by JKCL, strong presence in the Northern regions, diversification in other regions, possible balance sheet de-leveraging. We believe that JKLC is on firm ground to capitalize on the next leg of growth. 

Hence, we remain positive on the stock and recommend a BUY with a Target Price of Rs.480.

INTRADAY PICKS

WIPRO (LTP: 661) BUY For today's trade, long position can be initiated only in Rs.652-648 range for target of Rs.670 with a strict stop loss of Rs.642. 

GLENMARK (LTP: 805) SELL For today's trade, short position can be initiated only in

Rs.815-820 range for target of Rs.790 with a strict stop loss of Rs.828. 

JSWENERGY has given second highest daily close in last 52 weeks and holding well from last two trading sessions 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 116 for the upside target of 126 levels. 

HCLTECH is moving after forming a support base at 960 levels and turning form the lower band of the range as it has broken out from the consolidation phase and crossed its hurdle of 1007 levels. It has managed to hold the gains even after pressure in the broader market thus showing the potential to move towards 1033 and higher levels.

Thus traders can buy the stock with stop loss of 970 for the upside target of 1033 levels

Positional Stock Recommendation 

M&M bounced back post visiting 76.4% Fibonacci Retracement level of recent upward rally (which begun from Rs1102 and ended at Rs1309) and managed to breach 3-week old falling trend. 

We believe undergoing momentum will continue in the stock till the time it crosses 200-days SMA or 23.6% Fibonacci Retrenchment level. Positive cross-over in Stochastic (5,3) and RSI (14,9) are signaling strength in the stock and coinciding with our view.

Thus, for today's trade, long position can be initiated only in Rs.1190-1170 for target of Rs1260 with a strict stop loss below Rs.1150.