Anu Jain's top picks for trade today

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 Shree Renuka See messages about Shree Renuka

Anu Jain, Vice President of IIFL Private Wealth Management is bullish on Shree Renuka . However, she has a sell call on RIL , Lanco Infra and Exide .

Speaking to CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee, Jain also spoke about her reading of the market and the road ahead.

Here are the key levels to watch out for:

On Reliance Industries:

The pattern yesterday on yesterday's formation, despite the market being up is not too positive. The fact remains it continuously traded lower. That's not to deny that today if it's a positive day, it will not give a pullback. If you get Rs 986-987, it's probably a good short.

You could keep a stop loss which is as close as just about a 1-1.5% because if it goes beyond Rs 996 then the trend changes. You will have to be very nimble about it. My first target is closer to Rs 950 and beyond that if it stays weak, then it can go where it went last time Rs 916-920. Overall, it's a 10% mover of the market. If it goes down, it will obviously take the market with it.

On Shree Renuka Sugar:

It jumps up from its supports very well. The support is closer to Rs 86 and its holding on to those supports. Every time it comes to those levels it bounces back. At current levels from Rs 90 from where it closed yesterday, if one keeps a stop loss closer to Rs 87-90, one can see a swift move between Rs 93.5-94. If that were to sustain then probably higher levels can be achieved but that's the first kind of resistance so probably, will play for that.

On Exide:

It's extremely oversold but it's given a breakdown. The breakdown levels are very low; it's still another 20% from here. If one were to pull it and say - because it's oversold just like how the markets were till day before yesterday, then probably a pullback can happen into Exide.

I would say any Exide pullback till Rs 136 which is roughly about 5% pullback could happen today, tomorrow. It should be sold into and probably will look at targets which are closer to Rs 120-121. I would keep a stop loss closer to Rs 140, which would be about a couple of percentage points, just in case the market goes into a frenzy beyond 5,920. In that case, one would have to be cautious and take that as a stop loss.

On Lanco Infra

You can look at that whole sector and nothing is looking comfortable. The RSIs are not improving. In fact if they come closer to those 50 levels you will see another bout of selling starting. Whether it's Lanco, IVRCL or Jaiprakash, none of them are giving comfort on the charts. They are much weaker than the rest of the market.

A pullback in Lanco which is closed at about 54-54.35, if it goes up by about Rs 1-1.25, which is about 2-2.5%, it will see further selling coming into it. I will keep a stop loss of Rs 56.50 and I am looking at a target which is not a very short-term target but over 15 days for about Rs 50.

Below is a verbatim transcript of her interview. For complete details watch the accompanying videos.

Q: What is your take on the Nifty now - do you expect a pullback of substantial margin from these levels?

A: We are sitting on an event day. It's very difficult to say how the event is going to pan out. If the event works out to be better then expectations, yes, a pullback is definitely on the cards. The SGX Nifty is already indicating 5,770 which was the first target which the pullback should have taken us to. If that sustains, then 5,840-5,905 are the next targets. The market will find it very difficult to pan beyond 5,900 levels for the kind of selling it's seen continuously around 5,850.

Essentially, there is no immediate trigger which would break it down below 5,650. Over the next week to 10 days, it is going to pan out between a zone which is going to be between 5,800-5,600 and the breakdown will happen little later, maybe in mid February.

The definite structure is definitely down. One would have to be cautious at higher levels, reduce positions or probably go short but it is not something where you can trade in and trade out very easily. I have seen volatility go up. Even the VIX and the ATR going up are all signals that probably, the market is headed lower but over a slightly longish period of time, nothing which is going to happen today tomorrow.

Q: Two stocks Indian Bank and Bank of India ?

A; Indian Bank has been something which has been shot down so badly and so oversold. What you saw yesterday was essentially a pullback rally which has taken it to those Rs 234 odd levels, a 6% rise. It is suggesting that it can do some more pullback and if it continues then it can go a little higher, say till about Rs 245-250. But anything beyond that looks highly impossible, given the current set up and probably you will see fresh selling emerge there. At the moment, the pullback in banking can take you to about another 7-8%.

As for Bank of India, this is something which has held on much better than the other banks have held up. Its closed at Rs 468, so closer to about Rs 476 is the first mild resistance. Let us see how it pans out there. If it can move beyond that then there is a possibility. Otherwise, Rs 476 is the first major resistance it will meet from the bounce that it has given closer from that Rs 410-420 levels from where it has moved up.

Q: What about real estate anything looked interesting after yesterday's pop back in Orbit , HDIL or DLF ?

A: Orbit Corporation is looking decent for a pullback. If one looked at the charts of DLF, Unitech - Unitech is showing some kind of a positive bounce back for probably a couple of percentage points and the same goes for Indiabulls Real Estate . Amongst them, if there is a further breakdown on the charts or on the Nifty, then none of them are going to sustain it.

Be it a Unitech which is looking the weakest and probably can get itself poised to Rs 53 or DLF which can break below those Rs 250 levels and go further down. I can say Orbit can be played for a positive bounce, if market sustains. It gave a 11% bounce yesterday, so the moves already happened.

Suppose the market sustains this level and goes another 50-60 Nifty points, another 6-7% on something like an Orbit or Unitech is definitely possible because these are high betas, extremely broken down. A pullback rally where the shorts just mildly cover up also can take it up by a couple of percentage points.