6 stocks likely to see lot of action today

On CNBC-TV18's show Super Six, market gurus Manas Jaiswal of manasjaiwal.com, Aditya Agarwal of Way2Wealth Securities and Rakesh Gandhi of 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.

Manas Jaiswal, manasjaiwal.com

After making a strong base near Rs 30, Jaiprakash Associates has broken the resistance of Rs 35 with higher volumes. So we may see further up move. The stock can test Rs 40 in next one-two trading sessions. One can buy the stock at current levels with a stop loss of Rs 35.

Reliance Communications has broken the neckline of inverse head and shoulder pattern on the intraday charts, so we may see further up move. Stock can test Rs 140 in next two-three trading sessions. One can buy the stock at current levels with a stop loss of Rs 125.

Aditya Agarwal, Way2Wealth Securities

First stock is buy call on Union Bank of India. It has seen a correction of 40-50 percent in last couple of weeks but now at lower levels Rs 98-100 is a very strong historical support area for Union Bank. From those levels we have seen a good bounce back in yesterday’s trade. It started its short covering and later on some fresh positions were added in Union Bank. We expect that this bounce back may continue and on higher side stock may test Rs 118-120 levels in short-term. So at current levels long positions can be initiated keeping a stop loss of Rs 102 and target of Rs 118-120.

Buy Ipca Laboratories. The stock has seen a good correction but it was trading in a band for last couple of days, Rs 610-640 was the band. In yesterday’s trading stock has given a breakout above its trading band and it has closed above Rs 640 levels. We are expecting that this stock may see a good rally from these levels. Rs 680 is the immediate target which we can see in next three-four trading sessions but Rs 720 is a target which one can keep if they have a view of approximately 10-15 days. We are bullish on Ipca Lab, one can initiate long positions keeping a stop loss of Rs 620.

Rakesh Gandhi, FRR Shares

Buy Jaiprakash Associates. After a sharp decline from the level of Rs 85, stock seems to have a technical bounce back. Recently it has started a higher high, higher low pattern together with a short-term moving average crossover indicating that stock could see levels of Rs 40. However, because it has rallied for more than 10 percent it should be bought on dips for a target of Rs 40 and maintain a stop loss of Rs 33.

Buy IndusInd Bank. Though Bank Nifty made a new low on August 28, IndusInd Bank did not make a fresh low. It has started a higher high, higher low pattern based on closing basis indicating that momentum is picking up and short-term moving average crossover has also happened adding to the upward momentum. Hence the stock can be bought for a target of Rs 410 and maintain a stop loss of Rs 358.