Super Six: Top chart picks for August 7

On CNBC-TV18's show Super Six, market gurus Shardul Kulkarni of Angel Broking, Rajesh Jain of Religare Securities and Gaurav Ratnaparkhi of Sharekhan, 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.

Shardul Kulkarni of Angel Broking
The first stock that we will recommend is a sell call with regards to National Mineral Development Corporation (NMDC). The chart structure is a very strong lower top lower bottom cycle and in yesterday's trading session the stock has given a fresh breakdown. Going forward, we recommend selling the NMDC August Futures contract with a stop loss of Rs 99.30 for a target of Rs 90 over the next four-six trading sessions.
The second stock that we will recommend is a sell call with regards to Hindalco Industries. Metals have been underperforming over the last couple of trading sessions and Hindalco is on the verge of giving a breakdown. We recommend selling Hindalco August Futures below the levels of Rs 85. Sell below Rs 85 with a stop loss of Rs 87.50 for a target of Rs 80 over the next three-five sessions. Rajesh Jain of Religare Securities Dabur India has witnessed a steep fall from Rs 177 to Rs 158 levels. Since the past three trading sessions the stock has been taking support around Rs 158 levels. Till the stock is trading above this level there are higher chances of a bounce back, therefore investors can buy the stock at current price keeping a closing stop loss of Rs 157 for higher target of Rs 172 to be achieved. Axis Bank has witnessed a steep selloff from Rs 1,300 to around Rs 1,000 levels. Currently the stock has posted a counter-rally. Traders can consider this counter-rally as a fresh selling opportunity. One can short sell the stock around Rs 1,100 levels keeping a closing stop loss of Rs 1,135 for lower target of Rs 1,030 to be achieved in coming trading sessions. Gaurav Ratnaparkhi of Sharekhan
I have a buy call on Hindalco Industries. After a significant fall the stock is trading in a range bound manner since last few days. In terms of price pattern it has formed an accumulation triangle which is a bullish pattern and on the downside Rs 84.50-85 is a strong support zone. Unless that is broken I am expecting a sharp bounce in this counter. The daily momentum indicator is trading at oversold level and it also points towards the potential bounce in the stock. Even the risk-reward ratio is excellent to take a fresh entry on the long side. From short-term perspective Rs 92 will be the target and stop loss can be placed at Rs 84. Jain Irrigation Systems is in a medium-term downtrend. It recently formed a short-term pullback which faces resistance near the junction of 40 daily exponential moving average and daily upper Bollinger band and from there the stock has resumed with the larger downtrend. On the daily chart it has started forming lower top lower bottom which is a sign of a downtrend as per Dow Theory. The daily momentum indicator is inline with the price fall and suggests there is significant downside potential in this counter. On the hourly chart the stock has recently formed a bearish flag pattern and has broken out on the downside. One can sell August Futures with stop loss of Rs 49.80 for target of Rs 45.20 and timeframe will be 2-3 days.