Colgate Palmolive, HCL Tech top trading picks: GEPL Capital

GEPL Capital has come out with its report on Colgate Palmolive and HCL Tech.

Colgate Palmolive: COLPAL has been in continuously falling mode after hitting a high of 1085 in Nov-2011. This stock has remained an outperformer during the entire fall of Nifty but has been beaten down in last four to six weeks. Technically speaking, during all the previous fall this stock was taking support on its 200-DSMA and starting a fresh run from that point but in last three trading session it has breached its important support area and given a close below its 200-DSMA that too with above average volume which indicates that bulls are losing the battle. The On- Balance-Volume indicator is indicating that smart money is flowing out of this counter. On the weekly chart ,the stock has given close below its 26-WEMA indicating medium to long term reversal on trend. Keeping all this things in mind, we suggest going short in this counter at current market price as well as on rise in the range of 970-980 with a stop loss placing for a target of 850.

HCL Tech: HCL Tech has outperformed Nifty in the current countertrend rally which has emerged from 4530(Nifty) to 4870 area. After giving a move of almost more than 12% from a low of 380(Hcl Tech) this stock is showing signs of exhaustion on daily as well as on weekly charts. Daily chart of this stock is showing certain bearish indications which can drag down the price further in coming time. The stock has given a sell signal on crossover indicator (13-50 EMA crossover) as well as it has given breakdown from its sideways trend (range trading breakdown) that too with above average volumes indicating that bears are taking control in this counter. Since it has fallen sharply in last four trading session resulting in oversold territory in most of the momentum indicators, a temporary bounce back may come which can lift up this counter up to the area of 410-415 in this relief rally. For positional traders this relief rally will provide an opportunity to exit the long stuck up position or create fresh short side. position in this area with a stop placing at 428 for a target of 372.

FIIs holding more than 30% in Indian cos

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