Super Six short term picks for April 24

On CNBC-TV18's show Super Six, market gurus Hemen Kapadia of chartpundit.com, Manas Jaiswal of manasjaiswal.com and Arunesh Madan of Augment Investment, 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.

Hemen Kapadia, chartpundit.com

My first pick for today is ABB. It is a sell call. The stock has reflected weakness at closing below the 55 day exponential moving average. Most of the daily mechanical indicators had signaled a sell indicating a possibility of a further downside. One can sell ABB at around Rs 807 with a stop loss of Rs 812 and a target of Rs 809. It is shorter term call valid more from an intraday point of view.

My second call for today is Federal Bank. This is also a sell call. The stock has reflected weakens on the intraday charts – a lower top, lower bottom scenario. Mechanical indicators sell and a close below the 55 day exponential moving average. One can sell Federal Bank at around Rs 417, stop loss at Rs 421 and a target of Rs 409. It’s a shorter term call valid more from an intraday point of view.

 

Manas Jaiswal of manasjaiswal.com

My first call is on Welspun Corporation. For last two months stock was trading in the range of Rs 150 and Rs 130 but yesterday it broke this range downside and the 200 DMA also, so possibly stock can test Rs 114 in couple of trading sessions. One can go short with a stop loss of Rs 131.

My second call is on Jaiprakash Associates. Yesterday it broke the neckline of head and shoulder pattern and the 200 DMA, so both are bearish signs. So we may see further selling pressure and the stock can test Rs 70 in couple of trading sessions. One can go short with a stop loss of Rs 77.50.

 

Arunesh Madan of Augment Investment

I have a positional sell call in Kotak Mahindra Bank at the current market price. As the stock has formed a bearish pattern on the daily candlestick charts with a negative divergence on the RSI indicators. Short for its positions can be aggressively added once the stock begins to trade below the Rs 574 level. Look for a target of Rs 560 and Rs 567 in the coming days. A stop loss can be maintained above the Rs 595 levels.

I have a sell call in Apollo Tyres in the range of Rs 89.20-89.75 with a stop loss being placed above the Rs 93 levels on a closing basis. The stock has formed engulf bearish pattern on the candle stick chart in Thursday’s trade as well as in yesterday’s trade. Look for a target of Rs 81 in the coming days.