Super Six short term picks for Jan 22

On CNBC-TV18's show Super Six, market gurus Arunesh Madan of Augment Investment, Shardul Kulkarni of Angel Broking and Rajesh Jain of Religare Securities, 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.

Arunesh Madan of Augment Investment

Zee Entertainment Enterprises has broken down from a rising trendline placed on its daily chart in yesterday’s trade. Look to short this stock at the current market price keeping a stop loss above Rs 228 levels on a closing basis and going forward, one can expect a level of Rs 210 and Rs 200 in the coming days.

Tech Mahindra has seen a very sharp rebound from a level of Rs 900 in the last three weeks. This rebound appears to be corrective in nature as the stock was not able to break its previous high. We will look to short this stock in the range of Rs 1,000 to Rs 1,010 keeping a stop loss above Rs 1,030 levels on a closing basis. Going forward, one can expect a target of Rs 980 and Rs 965.

Shardul Kulkarni of Angel Broking

Charts show clear double-top formation in case of Zee Entertainment Enterprises. In yesterday’s trading session, this bearish formation has been confirmed. Sell the January futures contract for Zee Entertainment in the range of Rs 222 to Rs 224, place a stop loss at Rs 228 and trade bearish for a target of Rs 212 over the next six-eight trading sessions.

The second stock that we recommend is also a sell call with regards to Indian Overseas Bank (IOB). The chart structure shows that the weekly chart has a bearish reversal pattern and the daily chart has already shown a trendline breakdown. Sell the stock in the range of Rs 87 to Rs 88 on the January futures contract, place a stop loss at Rs 89.50 and trade bearish for a target of Rs 83 over the next three-five trading sessions.

Rajesh Jain of Religare Securities

With overall uncertainty in cash market, it makes sense to go long in a pharmaceutical stock. Aurobindo Pharma has formed a higher bottom-higher top formation on the daily chart. This is a bullish signal indicating that the stock is in strong hands. One can buy the stock at its current price keeping a closing stop loss of Rs 193 for higher target of Rs 202.

Adani Enterprise has consolidated a lot around Rs 260 levels where its 200-day exponential moving average is also placed on the daily chart. The stock has also closed above its past two weeks trading range of Rs 260-273 levels. One can buy the stock at any dip between Rs 270 and Rs 273 levels keeping a closing stop loss of Rs 265 for higher target of Rs 287.