Stock Recommendations

SENSEX (27565) BSE Sensex opened on negative note by making lower highs – lower lows but recovered well from lower levels and given a positive close after the weakness of last 2 trading sessions. It witnessed strong buying interest in banking sector and many beaten down counter but need a follow up action to turn the trend on Bull’s side. Now it has to hold above 27500 levels to take the index towards 27750 levels. However if the breaks the immediate support of 27350 then profit booking might be seen and bears may drag it towards 27150 and psychological 27000 levels. 

INTRADAY PICKS

IBULHSGFIN (LTP: 591) BUY For today's trade, long position can be initiated only in Rs.589-585 range for target of Rs.605 with a strict stop loss of Rs.583.

LICHSGFIN (LTP: 414) BUY For today's trade, long position can be initiated only in Rs.408-405 range for target of Rs.420 with a strict stop loss of Rs.400.

TALWALKAR has been taking multiple support near to its 50 DMA and moving upwards from last 3 sessions with rising trading volumes. It has crossed and closed above its falling supply trend line and holding above 350 may take it to 365 and 370 levels. It is making an attractive price pattern and well placed to see an immediate price action for higher levels. One can buy the stock between Rs.340 to 344 on small decline with stop loss of 335 for the upside target of 356 levels.

ASHOKLEY has recently taken support near to 68-69 zones and witnessing buying interest from last two trading sessions. Overall medium term trend of the stock is positive and after a consolidation phase, it looks attractive to see an up move towards 73.50 and higher levels. One can buy the stock between Rs.69 to 70 with stop loss of 67.50 for the upside immediate target of 73.50 levels.

Technical Stock Recommendation

Motherson Sumi, witnessed sharp sell-off from levels of about Rs.535 to low of about Rs.436 in past two months and later moved into the consolidation zone. This has helped stock to move out from the overbought zone. Stock is now trading around its channel support that is placed around level of Rs.460 while the resistance for the same is seen around level of Rs.550. Stock also has long term support line around level of Rs.440, that coincides with 200 day simple moving average. On other hand, RSI is currently placed tad below 50 mark while MACD below neutral line is case of concern. Also short term averages placed in the range of Rs.488 to Rs.492, can see upside in the counter getting restricted at higher levels. A high risk investor, can thus accumulate the stock on dips in view of the healthy risk-reward ratio for short term up-move.

Thus, for today's trade, long position can be initiated only in Rs.460-450 range for target of Rs.490-540 with a stop loss of Rs.440.