In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com, SP Tulsian of sptulsian.com and Hemant Thukral, Aditya Birla Money give top picks for the day.
Sudarshan Sukhani, s2analytics.comOne of the favourite stocks in the recent months has been Indraprastha Gas (IGL). The stock has been in an uptrend of its own. It is a buying opportunity for today. It is true that we are in front of news that can affect the company but charts are suggesting that the news has been either appreciated or is likely to be appreciated. The stock is breaking out on the upside from an ascending triangle. It is a bullish pattern, so consider buying IGL and I am assuming that whatever the news, this stock is likely to continue its up move.
A very disappointing stock has been NHPC. So we look to go short in NHPC today. There was a small consolidation in NHPC about a month and that consolidation yesterday has broken down, it has fallen below Rs 21.10, Rs 21.05. So the consolidation was simply a period of pause in an ongoing downtrend. Lower levels are likely. It seems like a relatively safe shorting idea, so consider going short in NHPC today.
SP Tulsian, sptulsian.com
I am recommending Jain Irrigation at Rs 63 because the stock has been seeing some informed buying coming in the last couple of days. May be ahead of monsoon these stocks are always in flavour and catches up the attention of the traders as well as investors. If the same trend continues one can expect a price of Rs 69-70 in next week to 10 days.
Hemant Thukral, Aditya Birla Money
First stock strategy for the day is Titan Industries. This midcap FMCG had seen exceptional rollovers to the tune of 85 percent from April to May series. Its six months average of rollover is 73 percent. What we have also seen technically is that Titan is trying to form a very strong base around Rs 260-261 mark. Stock has managed to close above Rs 270 yesterday clearly signaling that there is further strength on the charts. In immediate short-term we expect Titan to test Rs 279 and then Rs 285 levels. So we recommend going long on Titan, keeping a stop loss of Rs 263 where a very strong support exists with a target of first Rs 279 and second target of Rs 285.
Second stock is also a midcap traders favourite - Jain Irrigation. We have seen yesterday that Jain Irrigation from lower levels have started seeing addition of open interest on the long side. Yesterday itself 7 percent open interest has been added up with premium to the future moving up clearly implying long positions being added up. Technically the stock has managed to trade above Rs 60-61 zone which was acting as a stiff resistance. So in immediate short-term we have a price target of Rs 65-66 on Jain Irrigation. We recommend going long on Jain Irrigation keeping a target of Rs 66 and stop loss of Rs 57 where it has formed a very strong bottom there.
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