Sep 30, 2010, 09.49 AM IST | Source: CNBC-TV18

Sudarshan Sukhani's top picks for trade today

Technical analyst Sudarshan Sukhani of Technical Trends is bullish on the prospects of Shree Renuka, Tech Mahindra and Bajaj Auto. However, he has a sell call on JP Power and Opto Circuits.

Sudarshan Sukhani, Technical Trends

Technical analyst Sudarshan Sukhani of Technical Trends is bullish on the prospects of Shree Renuka , Tech Mahindra and Bajaj Auto . However, he has a sell call on JP Power and Opto Circuits .

Speaking to CNBC-TV18s Udayan Mukherjee and Sonia Shenoy, Sukhani also spoke about his reading of the market and the road ahead.

Here are the key levels to watch out:

On Tech Mahindra

This stock has been going up on news and then fallen a little but the chart suggests that this is not just news. The trend has quite obviously changed in the stock. There is a buying opportunity as yesterday there was excited price movement that brings us to a slightly lower level today where buying is possible for investors, for day traders so as usual keep a stop loss.

On Shree Renuka Sugars

Sugar has been moving and slowly inching up. Renuka is headed higher. Yesterday we saw slightly declining price movement there which gives us that very small buy on dips opportunity. Since the sector itself is moving up, the risks in buying a sector that is bullish are much less. So Renuka is a buy. Again it is a buy for day traders; it is also a buy for people who want to hold positions.

On JP Power

The charts are horrible for JP Power. It has been falling consistently and regularly, I have been downbeat on it earlier but here is a stock that is falling while the broad market is rising. Yesterday it made a long wide range bar that suggests it is breaking down from significant support levels and going to much lower prices. That will take some time I assume but here is a selling opportunity. Short selling should be done only by professional traders.

On Bajaj Auto

It came just two-three days ago in my list. This stock is breaking out, it made an upmove, it made a small correction like a flag and it is breaking out from that flag. It broke out yesterday. That suggests much higher levels in Bajaj Auto. Rather than discuss the levels because the markets may or may not follow them, the trend is up and a breakout tells us that we should catch the stock for a good ride on the upside. It should be continuing today also.

On Opto Circuits

That is a joker in the pack. Opto Circuits is in a strong uptrend. For the last few days, it is correcting. We are now trying to catch a correction rather than a trend. Catching a correction is usually a difficult task to do. This is again something which only specialized and professional traders should look into.

But sometimes after such sharp, steep rallies you can get a very decent correction which almost looks like a trend. That is why Opto Circuits was chosen. The stock is telling us, the highs have been made. We don't know how much lower it will go but probably enough to make money in it.

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