Mitesh Thacker's top 5 picks for today's trade

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Mitesh Thacker's top 5 picks for today's trade

Mitesh Thacker of miteshthacker.com is bullish on State Bank of India (SBI), Chambal Fertilisers, Hindustan Construction Company (HCC) and Shree Renuka Sugars. However, he is bullish on Gas Authority of India Limited (GAIL).

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Stocks in news: SAIL, Jet Air, Pantaloon, Ranbaxy, Gulf Oil Stocks in news: Rel MediaWorks, Inox, Kingfisher Air, Ansal ALSO READ See previous views by Mitesh Thacker See what other Experts & Brokerages are saying about SBI See messages about SBI SBI BSE | NSE 10/02/12 Are Mutual Funds betting on SBI? Other Stocks in this news Chambal Fertilisers and Chemicals | Hindustan Construction Company | Shree Renuka Sugars | GAIL India | Steel Authority of India | ABG Shipyard | Gujarat NRE Coke |

Mitesh Thacker of miteshthacker.com is bullish on State Bank of India (SBI), Chambal Fertilisers , Hindustan Construction Company (HCC) and Shree Renuka Sugars . However, he is bullish on Gas Authority of India Limited (GAIL).

Here are the key levels to watch out for:

Buy SBI with a target of Rs 2000 and Rs 2030 per share and stop loss below Rs 1904 per share.

This is looking like a buy. We have seen quite a good amount of price erosion in the share price of SBI. Now it is giving signals of some kind of bounce back and short covering on intraday charts. Hence, a good rally to levels of Rs 2,000-2030 could occur over the next few days and long positions can be taken with a stop loss below Rs 1905.

Buy Chambal Fertilisers with a target of Rs 80 and Rs 83 per share and stop loss at Rs 68.5 per share.

This one looks quite big. Looking at monthly and quarterly charts, the possibilities could be enormous. However, its just closed below its previous high of Rs 72 that is the level where the stock is finding good amount of supply. Yesterday, the price action was extremely strong with very good numbers on volume side and additions in the futures segment. The stock price will get past these levels of Rs 72-72.5 and move upto levels of Rs 80-83 over the next couple of weeks. Hence, long positions can be taken with a stop loss of about Rs 68.5.

Buy HCC with a target of Rs 135 and Rs 138 per share and stop loss at Rs 125 per share.

This falls in line with the kind of market action we are seeing. The stocks which have fallen quite a lot in this entire correction are now trading close to their support levels. In such stocks, there could be some short covering and we could see some price advance though it may not be very big move in terms of percentage basis.

Buy Shree Renuka Sugars with a target of Rs 191 per share and stop loss at Rs 179 per share.

We have been bearish on this stock for some time now. However, the stock has met our downside targets. It's been taking good support at the 200 DMA for the past three days. It's held on in a falling market. So taking support at a very important level of the 200 DMA there could be some bounce back happening in the stock. Hence, it is a short-term buy with a price target of Rs 191 and stop loss of about Rs 179.

Sell GAIL with a target of Rs 397 per share and stop loss at Rs 416 per share.

In the short term, the stock rice looks like entering some consolidation. If you are trading in a market which is extremely volatile and we are not yet sure of a bottom being in place, then it would be a good idea to have some kind of short exposure open. Hence, GAIL could be one of the stocks which could probably from the higher end of the range decline towards the lower end. The downside target would be about Rs 397 and stop loss at Rs 416 for the day.