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Super Six: Top chart picks for Tuesday

Published on Tue, Jun 21, 2011 at 08:46 | Source : Moneycontrol.com

Updated at Tue, Jun 21, 2011 at 10:14

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On CNBC-TV18's new show Super Six, market gurus Parag Doctor of Motilal Oswal Securities, Hemen Kapadia of chartpundit.com and Shrikant Chauhan of Kotak Securities, place their bets on two stocks each, thus offering investors a variety of options to choose from. Investors can read into the detailed analysis before agreeing to any or all the bets.

Parag Doctor, Motilal Oswal Securities

On the sell side we would like to recommend Ranbaxy laboratories . This stock has been struggling at the Rs 540-550 levels for the last few weeks and is now started a downtrend. It is expected to fall to the Rs 500 levels, which is a support of the 50 day moving average with the stop loss for the trade being at Rs 541.

We at Motilal Securities would like to recommend Bharti Airtel on the buy side. The stock has given a fresh break out and is at a new 52 week high and is expected to move upto the Rs 425 levels. The stop loss for the trade is around Rs 375 levels, which is a support from the 50 day moving average.

Hemen Kapadia, chartpundit.com

Shriram Transport Finance Co (STFC) is deeply oversold. It has been down for 6 trading sessions in a row. The hourly mechanical indicators like the MACD are already showing some signs of strength. Infact there is the hint of negative divergence in the 60min oscillators indicating that the bounce is close at hand. Keeping that in mind, one can buy STFC at around Rs 602 with a stop loss of Rs 594 and a target of Rs 618.

Jain Irrigation is a deeply oversold stock. It has been battered down badly, has been down for a number of trading sessions. There is the first hint of a turnaround. The daily stochastic has signaled a buying in the oversold zone indicating a limited downside, while the hourly mechanical indicators are showing signs of strength. One can buy Jain Irrigation at around Rs 133 with a stop loss of Rs 129 and a target of Rs 141.

Shrikant Chauhan, Kotak Securities

Godrej Industries has formed bearish in different patterns at the top of the rally. We can sell part at current levels, add more if it breaks Rs 193 and keep a target of Rs 177 on the lower side. We can keep a stop loss at Rs 206 to initiate a trading call on the same.

J&K Bank has formed cup and handle formation on daily charts and closed above the important level of Rs 855. We can keep a stop loss at Rs 820 on a closing basis and we can ride for the target of Rs 855 on the higher side and next Rs 930.