In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com, SP Tulsian of sptulsian.com and Hemant Thukral, Aditya Birla Money give top pick for the day.
Sudarshan Sukhani, s2analytics.comAfter big gains it is quite possible that markets will become choppy today. Therefore, it is possible in this choppy market to go and look for short selling opportunities. So I would suggest going short in Indian Hotels Company. It is a company, which has wonderful hotel properties but an extremely poor and disruptive stock chart. Price charts are bad. Yesterday the stock has just broken down from its last support levels of Rs 52 approximately, so it is looking at significantly lower prices. So consider going short in Indian Hotels Company. Look for not only a day trade but also a much deeper decline.
Going with the flow of an uptrend, I would suggest buying Adani Enterprises. The stock prices have gone through almost a bear market, have found support, build a small base and rallied on. It has been coming in our buy list earlier also and I would say that their sustained upmove tells us that this stock is making higher highs, higher lows and after a small correction yesterday, it has begun its journey again to make higher highs in that uptrend. So consider buying Adani Enterprises. Keep a stop loss but it is a stock worth looking into.
SP Tulsian of sptulsian.com UCO Bank looks a good short-term buy with view till expiry i.e. for the next three days at the current level of Rs 78.50 and one can look for a price target of about Rs 82 because the technical factors like short covering, which we have been seeing having built in the stock in this last one week is coming for short covering plus there is some trading buying interest having initiated in the stock in the recent time. So that can make the stock move to a level of Rs 82 by expiry.
Hemant Thukral, Aditya Birla Money
First stock is Titan Industries, a midcap fast moving consumer goods (FMCG) stock which has seen a surge in open interest (OI) to the tune of 11 percent along with premium as well as rollover cost to the next series increasing clearly telling that long OI is being built up in both May and June series. Technically also the stock has managed to trade above Rs 282-283, which was acting as a resistance point now clearly implying that Titan Industries is ready to next resistance level of Rs 292-293. So we recommending in short-term to go long on Titan Industries keeping a stop loss of Rs 276 and a target of Rs 292.
Second stock strategy will be an non-banking financial company (NBFC), off late, they have been doing very well i.e. Shriram Transport Finance Corporation. This NBFC has also seen a surge in OI to the tune of 10 percent along with premium to future increasing clearly telling that long OI is being built up here. Technically the stock has moved above Rs 805-810 zone, which was the recent top. So clearly, on technical front it is giving a fresh breakout. So we recommend to go long on Shriram Transport Finance Corporation with a target of Rs 840-845. Traders have to keep a stop loss – the stop loss would be maintained at Rs 780 levels.
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