Sudarshan Sukhani of s2analytics.com, SP Tulsian of sptulsian.com and VK Sharma of HDFC Securities suggest trading ideas for the day.
Sudarshan Sukhani, s2analytics.com
Markets are in a downtrend and we should be looking for ideas to short sell. One of the midcaps that can be sold tomorrow is Jubilant Foodworks. The stock has been choppy, but finally there is a thrust on the downside. A small correction on the upside was facing resistance and that resistance has helped. Jubilant Foodworks has again started on a declining trajectory. So look to short Jubilant Foodworks on Thursday, keep a stop loss and expect the stock to go down before one needs to cover it.
Pharmaceutical stocks continue to outperform and one can consider buying Divis Laboratories for Thursday. The stock had a sharp correction and is now consolidating at the lower end of its support levels. This consolidation has a very strong chance of breaking on the upside. So we are buying in anticipation of a breakout. Buy Divis Laboratories, keep a stop loss in case something goes wrong, but it may not. And hopefully there would be an upside breakout because pharma still continues to outperform.
SP Tulsian, sptulsian.com
GlaxoSmithKline Consumer Healthcare, now ruling at Rs 4,600, looks a good short-term buy because if we see the price behaviour the stock had corrected from Rs 5800 plus to the level of Rs 4300 plus in the month of June. However, now the resumed buying seems to have come back and on the lower volume the stock has started moving up. It is expected, probably in the month of July, we will be able to see a price of Rs 5000-5200. So this gives a very good opportunity to buy an MNC stock, which can give a return of about 10 percent in next one month with very limited downside.
VK Sharma, HDFC Securities
Tata Motors is the first stock, we have seen positions being built on the shorter side largely on account of apprehensions out of China. The 270 Put for the month of June was available at around Rs 2. Traders as well as investors can buy this.
Second is ICICI Bank. The stock closed at around Rs 1023 and 1020 Put was available at around Rs 5. So investors can buy this Put at Rs 5 and hold it for the end of the day. In between if one gets adequate profits one can always book profits, but one can hold it till the end of the settlement which is on Thursday. If investors hold adequate quantity buying this would also hedge their portfolio for a single day.