Stocks Recommendations

STOCK IN FOCUS

HSIL surged ~5% in yesterday’s trade scaling life-time highs supported by ~3x its 2-week average volume on the exchanges. We have been positive on the stock in wake of the turnaround in its packaging business coupled with the improvement in overall margins aided by cost saving measures. 

Further, the Budget laying greater emphasis on the Swachh Bharat Abhiyaan indicates better times for the company ahead. Notably, the budget announcements included building of 6 crore toilets under the Swaach Bharat Abhiyaan alongwith the need to build 6 crore houses for the poor, both of which are major positives for HSIL. Additionally, donations made to Swachh Bharat Kosh shall be eligible for 100% deduction u/s 80G of

Income Tax. 

We believe this will continue to generate high demand for sanitaryware products, which will lead to high growth for HSIL (a leader in sanitaryware) in the coming years. We reiterate our BUY recommendation on the stock with a Target Price of Rs495.

INTRADAY PICKS

BAJAJ AUTO (LTP: 2028) BUY For today's trade, long position can be initiated only in Rs.2005-1990 range for target of Rs.2060 with a strict stop loss of Rs.1980.

CROMPTON GREAVES (LTP: 169) BUY For today's trade, long position can be initiated only in Rs..165-162 range for target of Rs175 with a strict stop loss of Rs160.

RALLIS has made immediate base at around 208 zone after the sharp decline from 298 to 206 levels in last 16 trading session. The stock is forming a base with rising trading volume and looks attractive in terms of risk reward ratio. Traders can buy the stock with stop loss of 211 for the upside target of 226 levels.

SIEMENS is holding the gains and slowly moving upwards even after the recent market decline. It has taken multiple supports near to 1340 levels and also given highest daily closing in last 11 trading session. The stock is trading above all the short and medium term moving averages which also support our positive view on the stock. Thus, traders can buy the stock with stop loss of 1365 for the upside target of 1452 levels. 

Positional Stock Recommendations

Ultratech Cement reversed after visiting the support line, where prior week's "Hammer" formation helped the stock to witness steady rise in yesterday's trade. Stock is trading above its major moving averages, where short-term as well as long-term moving averages are sloping upwards. 

Positive cross-over in Stochastic (5,3) from oversold zone and reversal in RSI (14,9) from 50-mark are in favor of price rise and signaling strength in the stock. 

Thus, for today's trade, long position can be initiated only in Rs.2860-2820 for target of Rs.3200 with a strict stop loss below Rs.2730.