Stock Recommendations

SENSEX (27324) BSE Sensex opened positive and witnessed a lot of intraday swings. However by the end of the session the index closed in positive territory with a gain of 118 points. Now index needs to hold above 27400 levels to continue its bounce back move towards 27800 levels while on the downside, support exists at around psychological 27150 levels and below that bears may again drag the index towards 26750 levels.

STOCK IN FOCUS

Cadila Healthcare gained ~2% in Friday's trade with high volumes. Cadila reported an upbeat 4QFY15 at the operating level. Sales (up 17% yoy), margins at 21.8% (up 520bps) and APAT (46% yoy) were led by US. US and India (comprise 70% of sales) sustained healthy growth while Europe and Latam suffered from channel rationalization. The company seems to be in gestation period in the ROW markets. We believe the growth story in US will unfold over the next 3 years attaining sales of US$800mn with Cadila awaiting 161 approvals (260 filed, 99 approved). In the past, Cadila had expanded rapidly across geographies and technology platforms with significant investments in transdermals, nasals and vaccines which will start yielding results from FY16E onwards followed by biologics and respiratory. In our view, the monetization of the US filing efforts can deliver significant upside to the current earnings expectation. 

We maintain BUY with a Target Price of Rs.2,025.

INTRADAY PICKS

Colgate Palmolive (LTP: 2,072) BUY For today's trade, long position can be initiated only in Rs.2040-2030 range for target of Rs.2100 with a strict stop loss of Rs.2010.

Kotak Mahindra Bank (LTP: 1,345) BUY For today's trade, long position can be initiated only in Rs.1320-1310 range for target of Rs.1360 with a strict stop loss of Rs.1300.

TALWALKAR has recently taken multiple support at 314-318 zones and it is moving towards its 50DMA. The RSI indicator and MACD crossover is in favor of the stock showing that the counter has potential to move toward higher levels indicating buying interest in the counter. Traders can buy with the stock between Rs.334 to 337 stop loss of 329 for the upside immediate target of 348.50 levels. 

Technical Stock Recommendations

Dish TV witnessed sharp decline from Rs89.5 mark, but reversed after visiting its 50 week EMA and with decent rise it managed to breach four week old falling trend. Improving Stochastic (5,3) and RSI (14,9) are indicating strength in the stock and in favor of price rise. Though, our short-term technical view is positive on the stock, we believe fresh long position can be initiated only on minor decline for better risk reward.

Thus, for today's trade, long position can be initiated only in Rs.78-74 range for target of Rs.90 with a closing based stop loss of Rs.72.