Check out: 5 trading ideas by 3 market experts

In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com, SP Tulsian of sptulsian.com and Hemant Thukral give top pick for the day.

Sudarshan Sukhani, s2analytics.com

The Nifty’s decline does not reflect the complete carnage that we are seeing in midcap stocks. A lot of them have been hammered and battered. Unfortunately there seems to be more downside at least in this sector. So for today CESC is a short sell. The stock saw a big decline on news about two months ago and then there was a sharp rally. That rally led to a distribution which was really a head and shoulder pattern, a pattern that suggests an intermediate top has been formed and lower levels are coming. The pattern has broken down confirming the downside. We should be expecting a very deep correction in this stock and today this would be in our focus.

There is a large list of selling possible in midcap stocks and IDBI is one where I think short sells can be made. IDBI Bank rally and eventual decline finally led to a breakdown of support at Rs 100. Below Rs 100 there is likely to be a free fall. Now market can do what it wants and it is not necessary that this comes about but as a trader it is worthwhile taking a short position in IDBI today.

 

SP Tulsian of sptulsian.com

I am recommending Jet Airways on the news that Jet-Eithad deal is likely to get closed in next couple of days and it is learnt that company will be issuing 2.73 crore shares to Eithad for a total consideration of about USD 330 million which translates into a total amount of Rs 1800 crore plus. If you work out the value per share it works out at Rs 665 per share and if these deals gets announced share has all the probability to move to about Rs 635-640 so that gives a good opportunity to make a gain of about 6-8 percent in next one week or so. The profit booking can be looked to be booked at about Rs 630 or so.

 

Hemant Thukral

First strategy is on Bank of India. This midcap PSU bank has been a complete outperformer to its peers. From last three weeks it has managed to rebound from Rs 330-333 levels thus making it a very strong support base for the counter. Now what we have seen today is fresh long open interest being built-up with cost of carry improving clearly implying that long positions have been built-up. This suggests that in immediate short-term we expect stocks to move up and retest Rs 358-359 levels. However, traders should keep a stop loss around Rs 330-333.

Second strategy is on Sun TV. In last one week 27 percent short positions have been built-up in Sun TV and stock has corrected from Rs 480 back to Rs 440 levels. Important to note that yesterday the stock has rebounded from crucial support of Rs 437-438 where 50 days moving average is placed. Now in immediate short-term we expect more short covering to come in along with fresh long positions to be built up. So we expect this stock to retest Rs 470. Traders should keep a stop loss at Rs 437.

 

tw_stocks1_14feb
tw_stocks2_14feb