Stocks to watch: SAIL, Ashok Leyland and Grasim Industries

Excerpts from Closing Bell on CNBC-TV18 Watch the full show »

The market ended on flat note. Auto, consumer durables, banking and technology stocks gained. However, FMCG, capital goods, pharma and some metal and oil stocks witnessed selling pressure.

Technical analyst, Anil Maghnani sounds positive about SAIL, Ashok Leyland, Nalco and Grasim Industries.

This is how technical analyst, Anil Maghnani views different stocks across the board:

On Tata Motors and Maruti Udyog:

The first target for Tata Motors is Rs 810. But still, potential Rs 842 can be a nest-trading target.

On Dr Reddys Laboratories:

Dr Reddys Laboratories , at Rs 1200, is expensive. But, Rs 1269 is the major target and if it does cross that , then Rs 1350 is the next major target for the stock.

On SAIL:

I guess at contrarian buy it would have be much lower. If somebody would be buying SAIL at Rs 50-Rs 52 levels, I would say wait for a correction. But if someone has already bought it at lower levels, then run a little bit. It is news based with the Mittal story, again people are expecting something to come up. The immediate zone for the stock is Rs 61-Rs 63 and if it can cross that, then one could see it restate at Rs 69-Rs 70, which was a previous high for the stock. So, if one is holding it then hold on, but I do not know whether one can enter at these levels.

On McLeod Russel, Williamson Tea Assam, Harrisons Malayalam, Jayshree Tea and Industries :

I think McLeod Russel is at Rs160 in ten days and Rs 160-Rs 165 is the major target. So, I will book some there. Williamson Tea Assam is also looking around at Rs 430. So, I will book around there.

Harrisons Malayalam  and Jayashree Tea and Industries are high, there is still some upside left. No doubt the chart is going to look so strong you do not want to book them, but at some high point one cannot catch every top, so one could take at least half the profits. But again any fall will still be a buy just the way some momentum is similar to what we saw in sugar. We saw correction, but then we saw equal number of buying support coming at lower levels.

On Hindustan Lever:

Rs 220-Rs 240 is a range to book profits and everybody is trying to hope on Hindustan Lever , because nobody had it on the portfolio to begin with. But now, I will buy the fall in a Lever. If you are fortunate enough to have bought it at Rs 170-Rs 180 levels, it is a good exit point. One can book now, but any 10% correction would be a good opportunity to buy back in Lever.

On ITC:

I had put a target of Rs 170-Rs 173 on ITC on the longer term. This stock has made a fair move now, book profits and wait for corrections, maybe 10%-15% but not at this price. This is a good opportunity to exit ITC.

On Ashok Leyland:

Ashok Leyland is correcting recently, but it has made a fresh breakout. So, at lower levels again, there will be enough support. Next time it breaks above Rs 38 again, it has got enough strength make a new high at Rs 42-Rs 43 levels.

On Mangalam Cement:

I was a little skeptical on Mangalam Cement , but now that it has crossed Rs 100, it adds more strength to the stock. If it sustains here, one can see some good upside. If the momentum in the smaller stocks continue, then Rs 110-Rs 120 should be possible.

On India Cements:

India Cements is an interesting stock and if it cross Rs 139, then it should make a new high and then it should break the Rs 145-Rs 146 recent top.

On Nalco:

For a long time, we have been saying that Nalco is strong and it had a fair run from Rs 190 to Rs 300 levels. So, no surprise that it is coming down. Rs 260 will be a good support if it breaks that Rs 245. But a fall is still a buy in Nalco, it has lot of strength on the longer-term charts. So, it is an opportunity, if someone who missed out the first rally to the fall in Nalco.

On Ranbaxy Laboratories:

I am surprised that Ranbaxy Laboratories moved from Rs 350 to Rs 450 levels, that was strange. I would not be surprised to see a fall as Ranbaxy moved a little faster, given the way that the longer-term charts have been battered down. So, it should come back to the Rs 400 levels.

On Grasim Industries:

Grasim Industries  is an interesting one. I do not think anybody has been following that because in last the six months, it has moved on much lower volumes than before. I think it is more of an institutional interest rather than trader interest and the results were not that great either. The chart looks quite strong. If it sustains above the Rs 1700 levels, then it could easily go to Rs 1900.

On Canara Bank, Bank of India and Centurion Bank of Punjab:

Canara Bank did a fantastic move in the last five-six days. Bank of India is another classic around Rs 143-144 levels. To convince the traders it needs to cross just Rs 144-145 barrier and it will convince traders that this is for real because we have seen Rs 140 levels at index, when the index was 6500-7000.  Traders would want to see it convincingly break Rs 145 and then I think one will see more interest coming in. I think Centurion Bank of Punjab is more a slow mover. I think it is more an investment-based stock. It did break out nicely at Rs 23. I think if one can hold on to it for six months to a year, it is showing a nice slow pattern on the charts, Rs 29 being the first target. But I think on a longer term, you could look at Rs 33-35, but it is going to be a more waiting game than a fast move in Centurion Bank of Punjab.

Disclosures:

I do not think I have anything that we spoke about today.