6 trading bets that can fetch you handsome returns

On CNBC-TV18's show Super Six, market gurus Vishal Kshatriya, Edelweiss, Shardul Kulkarni, Angel Broking and Rakesh Gandhi, FRR shares, place their bets on two stocks each, thus offering investors a variety of options to choose from. Investors can read into the detailed analysis before agreeing to any or all the bets.

Vishal Kshatriya, Edelweiss

Buy ITC. Stock has formed bullish pattern on its daily chart. Open interest data indicates long buildup in the stock. Currently stock is trading in oversold zone which indicates technical bounce back in days to come. I would recommend traders to go long at current market price with a target of Rs 305 and a stop loss at Rs 285.

Sell IndusInd Bank. Stock has given double top pattern breakdown with good volumes on its daily chart. Derivative data also indicates aggressive short buildup in the stock. Short-term traders can go short at current market price with a target of Rs 380 and stop loss above Rs 420.

 

Shardul Kulkarni, Angel Broking

Buy Mahindra Satyam. The chart structure is a good strong higher top higher bottom cycle and the depreciation of the rupee will help Satyam. Going forward we expect the stock to move to Rs 135 over the next six-eight trading sessions. Buy the stock in the range of Rs 122-123, place a stop loss at Rs 118 and trade bullish for a target of Rs 135.

Sell Bank of Baroda March Futures, the chart structure clearly indicates a strong lower top lower bottom cycle and there is a small pullback over the last few trading sessions. We advice to sell into this pullback, sell the stock below the levels of Rs 705, place a stop loss at Rs 720 and trade bearish for a target of Rs 675 over the next four-six trading sessions.

Rakesh Gandhi, FRR shares

Sell Reliance Capital. In last three months stock has formed a double top pattern and last week we saw a sharp breakdown from this double top pattern. Further it is also sustaining below 200 days exponential moving average indicating the weakness is continuing and hence can be sold for a target of Rs 335 with a stop loss of Rs 390.

Sell ACC. The stock has been continuously rising since 2010 and every time it is retraced on regular intervals and during its retracement it has found support on a rising trend line. Eventually the rising trend line has been broken and stock is showing a weakness. Further short-term moving averages have also crossed lower and hence it can be sold on rallies for a target of Rs 1175 with a stop loss of Rs 1280.