Stock Recommendations

SENSEX (27828) BSE Sensex negated its negative swing and headed towards 27888 levels by reclaiming its 50DMA after the consolidation of last five trading sessions. Now it has to hold above 27750 levels to take the index towards 28000 and 28150 levels. However if the breaks the immediate support of 27650 then profit booking might be seen and bears may drag it towards 27300 and psychological 27000 levels. 

STOCK IN FOCUS

Ramco cement (RCL) will remain in focus today on strong earnings delivered by the company in 4QFY15. We continue to believe that the firm cement realizations across the Southern markets and likely pickup in demand post the division of Andhra Pradesh also supported by new capacity commissioned in Vizag, will aid RCL to witness volume growth and restore its profitability in 2HFY16E. 

At the CMP, the stock trades at US$119 and US$111 on EV/tonne for FY16E and FY17E, respectively. Further, on EV/EBIDTA, it is trading at 11.6x FY16E and 8.1x FY17E. 

We maintain our BUY recommendation on the stock with a Target Price of Rs.410.

INTRADAY PICKS

IBULHSGFIN (LTP: 596) 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.

REC (LTP: 296) SELL For today's trade, short position can be initiated only in Rs.302- 306 range for target of Rs.288 with a strict stop loss of Rs.310.

Technical Stock Recommendations

DLF, continues to witness a weak trend as the stock continues to give negative breakdown at various levels after failing to move past its 200 day simple moving average during the multiple attempts. Stock is also trading below all the short term averages. MACD below neutral line and RSI below 50 mark since April indicates a weak trend in the stock. Stock also faces strong resistance in the range of Rs.125-130 with 20 day exponential moving average also placed around level of Rs.126. We believe this region provides a good shorting opportunity for the traders for further downside towards level of Rs.110-105.

Thus, for today's trade, short position can be initiated only in Rs.125-130 range for target of Rs.110- 105 with a stop loss of Rs.135.