Rajat Bose's top 5 picks for today's trade

Technical Analyst, Rajat Bose of rajatkbose.com is bullish on and Dr Reddy’s and GE Shipping whereas he is bearish on Cipla , HDIL and GVK Power .

Here are the key levels to watch out for:

Dr Reddy's: Buy

Target of Rs 866 per share

Stop loss below Rs 850 per share

When I prepare the trading strategies for these stocks, the European markets and the Dow Jones were all weak, so I expected that despite having so much of momentum, Dr. Reddy’s on the last trading session on Friday, maybe it would actually come down a bit and that’s why I have written buy on declines upto Rs 855. So if you are actually entering at lower levels and if you put a stop below Rs 850 means that chances are that your stop wont get activated and its momentum would come back with the day’s progress and you would see it going upto Rs 866 which is the last closing level and then Rs 871 and Rs 878 but definitely Rs 878 is a strong resistance.

GE Shipping: Buy

Target of Rs 291 per share

Stop loss below Rs 277 per share

This stock has actually made a breakout; it is a flat yes. But look at the volumes figure on the last day, after a fairly long period of time we have seen a volume figure which is pretty encouraging and at the same time on that. Now I expect the momentum to be carried forward during the day and I have given a buy call on this and my target is Rs 291-294 and Rs 300 and 300 would be a psychological and a technical resistance and in this case, I would put a stop below Rs 277, so that is how I am going to trade and these are day trades and I believe there are opportunities.

Cipla: Short

Target of Rs 256 per share

Stop loss above Rs 262 per share

This stock is falling throughout last week, it was actually coming down and my feeling is that this stock might test Rs 250 levels. Thereafter it may stage a bounce back so I am betting on a sell call for today, my stop would be above Rs 262 and the target should be Rs 256, Rs 254 and Rs 251 and between Rs 254 and Rs 251 we should cover the short positions be neutral and a bounce back above Rs 256, buy it again.

HDIL: Short

Target of Rs 321 per share

Stop loss above Rs 331 per share

One clarification, these are day trading calls and if we see at HDIL, the last pattern on the daily bar chart cannot possibly classify as an evening star but definitely one up day and then there is a shooting star kind of formation that means during the day it went up but closed near the days low and then on last Friday we found that it actually closed lower than the pervious day and this suggests that there will be a minor corrective and that minor corrective could actually take it down by another ten points. That is the kind of trade that you can do and if you ask me from a medium term perspective whether one should remain long in this then definitely yes if you are investor your stop loss would be below Rs 289 and you can remain long, so it depends on your perspective and time horizon

GVK Power: Short

Target of Rs 44.75 per share

Stop loss of above Rs 48 per share

This is another stock that is looking weak and this is again a sell call for the simple reason, today the Nifty has a lot of resistance between 4,986 and 5,014 and weak stocks like GVK power might actually shed a few more points. I am expecting that it might actually test something like Rs 43.50 to about Rs 43, so I would put a stop above Rs 48 and my target would be 44.75, 44.25 and 43.50, so I believe there is still some downside left in GVK power.

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