Stock Trading Recommendations

Here are few trading picks in trade today:

Nifty outlook

On the weekly scale nifty has been within a 'Descending Triangle' but a whipsaw at the lower end thrilled the traders and led to unwinding of leverage positions hence, leading to a general crowding out from the market. A candlestick pattern of 'Hammer' is also evident at the support line which is a positive indication. The probability of the pattern breaking out upward is about 80% given the historical evidences. Breakout area of the pattern is around 8500 (first target) and the stop remains slightly lower at 7620. So, a pullback up to 7800 could be taken as an opportunity to add positions.

HDFC: BUY

SL:1100

Target: 1360

The occurrence of the ‘Bullish hammer’ on the weekly scale augurs well for the stock. 1140 support could hold well. Decline if any could present a good reward to risk opportunity to add as portfolio longs with a stop below 1110 & an initial target up to 1360.

BAJAJ CORP: BUY

SL: 465

Target: 640

Bajaj Corp saw a fresh breakout from consolidation which indicates the secular up-trend to remain intact. The stock could be accumulated with a stop at 465 for a medium term target upto 640.

YES BANK: SELL

SL: 696

Target: Rs.610

Yes Bank has been one of the weakest amongst the private banking names .Continuation pattern on the daily scale indicates the downward momentum to continue. Stock could be sold with a stop at 696 for a target upto 610.

EROSMEDIA : BUY

SL: Rs 455

TARGET: Rs 513

The stock has recently taken multiple support at around 425-430 zones after the correction of last 6 weeks from 644 to 425 levels.  It has been trading in a narrow range from last four trading sessions and also respecting to its 200 DMA. It is turning from the lower levels thus looks good in terms of risk reward ratio. One can buy the stock with the stop loss of 455 for the upside target of 513 levels.