Mitesh Thacker's top 5 picks for trade today

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Mitesh Thacker's top 5 picks for trade today

Mitesh Thacker, Technical Analyst of miteshthacker.com is bullish on Reliance Communication, Ashok Leyland, JSW Steel, Deepak Fertiliser and Ahluwalia Construction. He advises traders to buy into these stocks.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Mitesh Thacker See what other Experts & Brokerages are saying about Reliance Comm See messages about Reliance Comm Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Ashok Leyland | JSW Steel | Deepak Fertilizers and Petrochemicals Coprn | Ahluwalia Contracts India | TVS Motor Company | Next Mediaworks | Network 18 Media & Investments | Reliance Broadcast Network | Television Eighteen | Gujarat NRE Coke | Shree Renuka Sugars | Bajaj Hindusthan | Sparc Systems | Hanung Toys and Textiles |

Mitesh Thacker, Technical Analyst of miteshthacker.com is bullish on Reliance Communication , Ashok Leyland , JSW Steel , Deepak Fertilizer and Ahluwalia Construction . He advises traders to buy into these stocks.

Here are the key levels:

Buy Reliance Communications with a target of Rs 185 per share and then Rs 193 per share, keeping stop loss at Rs 165 per share. 

We have been watching the stock for quite sometime now and I was waiting for a break above Rs 172. Yesterday, towards the fag end of the trading day, the stock price showed a lot of momentum and managed to hit levels of around Rs 173.5, though the average closing was below Rs 172. 

On momentum charts an indication there is a strong buy signal that suggesting a breakout should happen today. On Rs 172.5 there is an 89-day average above that long positions can be taken with possibly price targets of around Rs 185 and Rs 193. The stop loss here would be around Rs 165.

Buy Ashok Leyland with a target of Rs 58.50 per share and then Rs 61 per share, keeping stop loss at Rs 54.25 per share.

There the chart pattern is very exciting. If you look at the medium-term charts, Rs 55-56 has been the highest ever weekly closing the stock price has recorded. Today being a weekly close as Friday is a holiday, there is a good chance of the stock price giving a good breakout, entering a new territory and recording a close into it.

The short-term technical also look very positive suggesting that the breakout could happen either this week or probably next week, so that's one stock to bet upon. In the short-term the targets would be around Rs 58.5 and Rs 61 and I am recommending a stop loss of about Rs 54.25 but once this breakout on weekly chart gets confound, we are looking at target of Rs 70 and higher.

Buy JSW Steel with a target of Rs 1,300 per share and then Rs 1,350 per share, keeping stop loss at Rs 1,204 per share.

That is one stock, which we like for long. Mainly for two reasons: very clearly it is an outperformer in the metal sector. Secondly, the long-term charts are very exciting and very interesting-a very bullish sign.

We are seeing a stock price going to some kind of correction for the last two-three days. It is this kind of correction that people should look to invest into stocks which are stronger and outperforming stocks.

I think Rs 1,205 a stop loss, which I have given is a very strong support. Any decline should be used to accumulate this stock. The near-term target would be the previous high of around Rs 1,300 as well as possibility of breaking into new highs and recording a level of Rs 1,350.

Buy Deepak Fertiliser with a target of Rs 121 per share and then Rs 125 per share, keeping stop loss at Rs 110 per share.

It's purely a technical pick. We got a buy signal yesterday. There were some kind of breakout and also the fact that it was assisted by very good numbers on delivery volume side. We saw delivery volume take a surge; they were up about 250% from the normal delivery volumes.

There seems to be short-term uptrend in the volume price, we are expecting to hit towards levels of around Rs 121 to Rs 125. The stop loss here would be around Rs 110.

Buy Ahluwalia Construction with a target of Rs 230 per share and then Rs 240 per share, keeping stop loss at Rs 203 per share.

For the entire month of March the stock price has been consolidating in a very narrow range of Rs 10-from Rs 200-210. Yesterday it gave a breakout, closed above that and also is the fact that there was some delivery based buying so clearly after a breakout from this kind of sideways range the price is signalling an uptrend.

In the short-term, the expected price targets, which this stock could hit, would be around Rs 230-240. The stop loss here would be around Rs 203.