Anu Jain's top 5 picks for trade today

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Anu Jain's top 5 picks for trade today

Anu Jain, Vice President - IIFL Private Wealth Management at India Infoline advises traders to go short on State Bank of India, Aban Offshore, HCC, HDIL and Sesa Goa.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Anu Jain See what other Experts & Brokerages are saying about SBI See messages about SBI Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Aban Offshore | Hindustan Construction Company | Housing Development and Infrastructure | Sesa Goa |

Anu Jain, Vice President - IIFL Private Wealth Management at India Infoline advises traders to go short on State Bank of India , Aban Offshore , Hindustan Construction Company (HCC) , HDIL and Sesa Goa .

Here are the key levels:

Sell State Bank of India with a target of Rs 1,815 per share and stop loss at Rs 1,950 per share.

Amongst the banks, State Bank of India (SBI) is one of the weakest banks. It is not making any attempts to even pullback to the Rs 1,950 levels - forget more than Rs 2,000 levels where its 10 day moving average (DMA) is. So having seen that on the charts, I think about Rs 1,944-1,940 is a place that it can give a pullback even if the market is doing well. At that place, I think there is a good possibility to go short for about Rs 1,815-1,820 odd levels.

So it is also a great indicator of the fact that public sector undertaking (PSU) banks are now not going to outperform which they have done for quite some time.

Sell Aban Offshore with a target of Rs 1,037 per share and stop loss at Rs 1,184 per share.

The highest beta stock of our counters and post the results it got a hammering from those Rs 1,200 levels, has got some kind of a pullback at about Rs 1,180 but it is finding extremely difficult to cross those Rs 1,180 levels that is where the stop loss is Rs 1,220, which it has tried to attempt but couldn't go through it.

It is close at about Rs 1,150, the Rs 1,120 odd levels if it breaks then it is going to definitely test those Rs 1,037-1,035 levels which is again a very crucial level for this stock. So I think this being the highest beta, this is going to be the most volatile. So this is for people who have the risk ability to handle the ups and downs.

Sell HCC with a target of Rs 124 and 119 per share and stop loss at Rs 136 per share.

I feel that you should basically short at bounces and only if you are a very high risk taker as I have said before that you should bounce right in the beginning of the day. Given that I think that HCC is close at about Rs 129, there is a chance it can pullback to about Rs 133-134. So I would probably want to short this stock at that price. As I have said, target is about Rs 124 and the second target is Rs 119.

I definitely feel the way JP Associates, HCC, Bharat Heavy Electricals Ltd (BHEL), Larsen & Toubro (L&T) - all of them are getting beaten above this, there is definitely some more place for these to get beaten more. That is the reason I have picked up this stock because it is again a high beta.

Sell HDIL with a target of Rs 84 per share and stop loss at Rs 328 per share.

HDIL gave a pullback on the Saturday session to about Rs 309, it had tested Rs 301 on the Friday session. Looks like it is going to attempt those Rs 284-288 sessions but the 10 DMA is about Rs 320. So if there is any kind of a pullback today or tomorrow, I think that would be a good time to go short into it. The target as a positional call would remain Rs 284-285.

Sell Sesa Goa with a target of Rs 326 per share and stop loss at Rs 372 per share.

Metals are extremely oversold so there was a pullback which was expected, some did come on Friday, obviously they will move in sync with the dollar index globally but the fact still remains that Sesa was the first one to take the plunge along with Sterlite. Sterlite is still little oversold, Sesa can be the first one to basically give up again. Can come up to Rs 361-365, good places to short, I think the target should be Rs 326.

This was the first short I had given about three weeks back and I continue to say that one can cover up on any bounce, give a short again on this counter, Sterlite, JSW Steel, Tata Steel. It is a whole pack which is going to be very volatile but at the same time one has to be prepared for bounces.