Stocks Recommendations

STOCK IN FOCUS

Ramco Cements (RCL) surged nearly 4% in volatile trade yesterday. The gain in the stock was supported by ~3.6x its2-week average volume. Notably, the stock has corrected ~20%in the past couple of months and provides a good entry point for medium-to-long-term investors. 

We continue to believe that the recent pickup in cement realizations across the Southern

markets and likely pickup in demand post the division of AndhraPradesh, will aid RCL to witness volume growth and restore its profitability in the subsequent quarters. 

At the CMP, the stocktrades at US$115 and US$105 on EV/tonne for FY16E and FY17E, respectively. Further, on EV/EBIDTA, it is trading at 11xFY16E and 8x FY17E.  We retain our BUY recommendation on the stock with a Target Price of Rs.410.

INTRADAY PICKS

Hindustan Unilever (LTP: 874) BUY For today's trade, long position can be initiated only in Rs.865-855 range for target of Rs.900 with a strict stop loss of Rs.848. 

Bank of India (LTP: 196) SELL For today's trade, short position can be initiated only in

Rs.200-202 range for target of Rs.190 with a strict stop loss of Rs.205. 

KPIT is making a narrow range price formation after a recent fall from 226 to 176 levels in last three weeks. Recently it has taken multiple supports near to 178 zones but at the same time finding hurdle to cross 190 zones. We are getting an early sign of positive price action and holding above 190 may take it to higher levels. Traders can buy the stock with stop loss of 180 for the upside target of 192 levels.

DISHTV has been making higher highs from last six trading sessions and holding the gains even after the volatile market move. Recently it has taken multiple supports near to 77 zones which is also 50 DMA for the stock. Thus, Traders can buy the stock with stop loss of 78.50 for the upside target of 85 levels. 

Positional Stock Recommendations

Hero MotoCorp trading around 50% Fibonacci Retracement level of Feb-Dec 2014 rally from last couple of weeks. We believe such a strong base formation will help the stock to resume its uptrend and recover prior loss. Long-term moving averages (i.e. 100-week SMA and 200-week SMA) are slopping upwards, positive cross-over in Stochastic (5,3) and RSI (14,9) around their oversold zone are also coinciding with our view and signaling near-term trend reversal in the stock.

Thus, for today's trade, long position can be initiated only in Rs.2600-2560 for target of Rs.2900 with a strict stop loss below Rs.2500.