Long Rel Comm, Atlas Cycle, Kalyani Steel: Jain

In CNBC-TV18's popular show Bull's Eye, Pankaj Jain, Suntech Wealthmax shares trading strategy of the day.

Long on Reliance Communications. We have seen that this stock has been performing very well for past few weeks and after the tie-up they signed with Reliance Industries regarding sharing of infrastructure, there has been news in the market that consortium of private kitty funds maybe in talks to buy majority stake in Reliance Globalcom. The deal could be worth anywhere closer to USD 1 billion. So this is a pretty positive development and we have been seeing that stock has been moving very steadily.
Long on Atlas Cycle. What we have seen is that this stock had been under correction for about 2-2.5 months and on Thursday we saw that stock move very rapidly on very strong volumes and it is just a shed above 50 day moving average (DMA) and with the kind of positive momentum oscillator stock has shown and with the kind of positive strong volume we have seen in the stock, we believe that this northward movement would continue in Monday’s trading and taking this factor into consideration, we have gone long on the stock with the target price of Rs 304 for the day.
Long on Hercules Hoists. Again similar patterns have been seen in this stock. The stock has been sort of under serious correction for last seven-eight weeks and on Thursday we saw exceptionally large volumes in this stock both on NSE and BSE and on back of very large volumes, stock moved very rapidly and the kind of positive momentum oscillators stock closed with, we believe that stock would show this positive momentum in one day’s trading too and the stock could be headed much higher. So taking this factor into consideration, we have gone long on Hercules for the day.
Long Kalyani Steel on and what we saw that stock move by about 13-14 percent on the Thursday’s trading after favourable Supreme Court (SC) judgement with vis-à-vis mining in Karnataka. We believe in next few months, Kalyani Steel should be able to scale up their production and we have a mid-term bullish view on the stock. We believe that the kind of positive momentum stock showed on Thursday is not yet over and this momentum could spill over in Monday’s trading.