Buy Central Bank; sell Adani Ports on rallies: GEPL Capital

GEPL Capital has come with its top trading picks for ther week. The research firm has recommended to buy Central Bank of India (CBI) and sell Adani Ports on rallies in its March 12, 2012 research report.

Central Bank of India (CBI) - Trend Reversal
Action: BUY | Last Close: 104 | Target: 120 | Stop Loss: 96

"Central Bank of India (CBI) has been in a strong downtrend since last fifteen months from its all time high of 212.The rally which has started from the low of 25 has topped out around 212 after a consistent rise of almost twenty one months. Prices have retraced almost 78.64% retracement (Fibonacci retracement ratio) in last fifteen months and have come down to new low of 63. Talking about the daily as well as weekly chart, CBI has generated a buy signal on daily chart after giving a close above it s long term moving (200-DSMA) that too after a very long period of time and with above average volumes indicating a larger degree trend reversal. Short, Medium and Long term moving average are well placed in line indicating continuous of ongoing trend on the upper side. On weekly charts this counter has got good support around 97-98 zone where its 26-WMA is placed. The daily RSI is showing the value reading of 50 indicating a reversal from short term perspective. Keeping all this parameters in mind one can go long in CBI at current market price for a target of 120 with a stop placing at 96.

Adani Ports - Sell on rallies
Action: SELL | Last Close: 130 | Target: 110 | Stop Loss: 148

An Adani port has been in a sideways trend since last two weeks trading in the range of 157-135 creating a narrow trading range. In the last two trading session, this trading range has been breached decisively with record volume on downward side indicating an establishment of fresh down trend from it s sideways movement. The stock has moved down below its short term, medium term and long term moving average with extra ordinary volume indicating the reversal of trend. One can go short in this counter on rallies with keeping a stop around 148 for a target of 110," says GEPL Capital research report.

Institutional holding more than 40% in Indian cos

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