Buy Maruti; sell HCL Tech, Rallis India: GEPL Capital

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Buy Maruti; sell HCL Tech, Rallis India: GEPL Capital

GEPL Capital has come with its 3 top trading pics - Maruti, HCL Tech and Rallis India

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RELATED NEWS Buy Infosys; target Rs 3214: Firstcall Research Buy Amara Raja Batteries; target Rs 250: Angel Broking Buy Tata Sponge Iron; target Rs 382: Angel Broking ALSO READ See previous views by GEPL Capital See what other Experts & Brokerages are saying about Maruti Suzuki See messages about Maruti Suzuki

GEPL Capital has come with its 3 top trading pics - Maruti, HCL Tech and Rallis India

MARUTI - Pull back rally
Action: BUY | Last Close: 943 | Target: 1020 | Stop Loss: 875

Maruti has been in a strong downtrend since last two years from its all time high of 1738.The rally which has started from the low of 433 has topped out around 1738 after a consistent rise of almost 10months. Prices have retraced almost 61.8% retracement (Fibonacci retracement ratio) in last two years and have come down to new two years low of 907.On daily chart this stock is into deep oversold territory in terms of momentum indicator reading which indicates that a pullback rally is on cards anytime. It has also formed a bullish hammer in downtrend that too with above average volumes indicating a temporary reversal in prices. Talking about weekly charts, on this time frame Maruti has very strong support area in the range of 875-920 (Gap area on weekly chart) which will prove to be an area of short term trend reversal which can push the price on the higher side. Keeping all this things in mind, Maruti seems to a contra buy in this bearish scenario for a countertrend rally with a stop loss placing at 875 for a target of 1020.

HCL Tech - Sell on rise
Action: SELL | Last Close: 394.55 | Target: 370 | Stop Loss: 435

Hcl Tech has outperformed Nifty in the current countertrend rally which has emerged from 4720(Nifty) to 5400 area. After giving a move of almost more than 25% from the low 360(Hcl Tech) this stock is showing the signs of exhaustion on daily as well as on weekly charts also. Daily chart of this stock is showing certain bearish indications which can drag down the price further in coming time. The stock has given a sell signal on crossover indicator (13-50 EMA crossover) as well as it has given breakdown of its rising trend channel that too with above average volumes indicating that bears are taking control in this counter. Since it has fallen sharply in last four trading session resulting in oversold territory in most of the momentum indicators, a temporary bounce back may come which can lift up this counter up to the area of 410-415 in this relief rally. For positional traders this relief rally will provide an opportunity to exit the long stuck up position or create fresh short side position in this area with a stop loss placing around 435 for a target of 370.

RALLIS INDIA - Trend Reversal
Action: SELL | Last Close: 142.55 | Target: 125 | Stop Loss: 156

Rallis India has given a breakdown from its long term rising trend line indicating a larger degree trend reversal. The breakdown has come on a backing of strong volumes which confirms the reversal of ongoing bullish trend. The stock has also given a close below its short term as well as long term moving average which indicates a further decline in prices in coming time. Viewing the chart in Candle stick form, it has formed three black crows type of bearish pattern indicating the decline to be massive in coming time for this stock. The daily chart is in oversold territory hence a short term bounce may come around 148-150 which will provide an opportunity for positional traders to create a short side position with a stop loss placing at 156 for a target of 125.

Public holding more than 90% in Indian cos

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