Stock Recommendations

SENSEX (26837) BSE Sensex continued its selling mode for second consecutive session and corrected by more than 1200 points from 27900 to 26700 levels. Immediate trend may remain under pressure till it doesn’t move back move 27000-27150 zones. On downside if it fails to hold 26700 levels then weakness may continue towards its next support of 26400 zone. On upside if it manages to cross and hold above 27150 then only bulls would be back to play the bounce back moves in the market.

INTRADAY PICKS

Bharat Heavy Elect. Ltd (LTP: 246) SELL For today's trade, short position can be initiated only in Rs.252-255 range for target of Rs.240 with a strict stop loss of Rs.258.

Just Dial Ltd. (LTP: 1093) BUY For today's trade, long position can be initiated only in Rs.1070-1060 range for target of Rs.1120 with a strict stop loss of Rs.1050.

VOLTAS is holding the gains above its immediate support of 320 zones even after sharp declines in the market. Overall trend of the stock is positive and if market supports then it may outperform and test its recent high of 348 zones. It is making an attractive price pattern and has the potential to see the next round of momentum. One can buy the stock between Rs.324 to 327 with stop loss 319 of for the upside target 339 of levels.

Technical Stock Recommendations

Mahindra & Mahindra is moving in falling channel pattern from last three months, where the band size is 130-150 points. Stock is still facing hurdle around its upper band, as it closed on a negative note from last two trading sessions in a row. Negative cross-over in Stochastic (5,3) and decline in RSI (14,9) are also signaling weakness in the stock. As per the current set up, we believe stock will remain in pressure and visit lower band of the channel in short-term.

Thus, for today's trade, long position can be initiated only in Rs.1,240-1,260 range for target of Rs.1,130 with a closing based stop loss of Rs.1,290.