Stocks to watch: IFCI, HLL, Hindalco

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Hani Industries | Hindustan Unilever | IFCI | Indiabulls Financial Services | Infosys | Oil and Natural Gas Corporation | Polaris Financial Technology | State Bank of India | Suzlon Energy |

The weakness in the markets continues as they ended down over 1.5% lower on account of sustained selling pressure in index pivotals. Selling pressure was seen in banking, capital goods, pharma, oil & gas and IT stocks.

Among stocks to watch, technical analyst, Prakash Gaba sounds positive about Infosys, Hindalco, Hindustan Lever and IFCI.

This is how Prakash Gaba views different stocks across the board:

On ONGC and State Bank of India:

ONGC was certainly looking weak. It went to somewhere around Rs 1000 levels and it was around Rs 870, where I thought perhaps it could stabilize. So it is already at Rs 890 and maybe Rs 20 more downside is possible from here.

On State Bank of India , Rs 1150 was the crucial support. I don't know whether it has gone there or not, but that is an area I would watch.

On BHEL and Suzlon Energy:

Suzlon is weak. It is make or break levels at Rs 1200 levels and if that happens, then we can see Suzlon come down to around Rs 1110 or Rs 1100 levels. Suzlon was hovering around Rs 1200 mark or so.

BHEL gave a 'buy' signal three days back, but that has turned into a 'sell' signal now and that is very dangerous.

On Infosys:

Infosys has a very strong support at Rs 2150. We have seen a low of Rs 2150, so there is a very good chance that Infosys is at make or break levels.

On Polaris:

Polaris is perhaps is under pause mode. It needs to clear the Rs 200 mark and if it happens, then maybe Rs 233 is coming in because Rs 170 was a very strong breakout point, which was taken and that had a target of Rs 233. So it is just pausing, it looks like that.

On Indiabulls:

For Indiabulls , Rs 265 is a very strong support zone. There is not much downside on Indiabulls.

On HLL, Hindalco:

For Hindustan Lever , Rs 207 is a very strong support. In the last three days, it looked like short covering had taken place here and maybe a build up is taking place now.

Hindalco is another stock that perhaps I could go long on. I must disclose that I am long on Hindustan Lever and Hindalco. These are the stocks where I feel downside is not much. Hindustan lever could perhaps be a surprise.

On IFCI:

It has given a beautiful breakout at Rs 13 and that had a target of around Rs 18 levels. If not Rs 18, then at least Rs 17-18 should be a possibility. IFCI is certainly looking good.

Disclosures:

I have disclosed all except Infosys. I must say I have long positions on Infosys too.